A
DETAILED
PROJECT REPORT
ON
“CONSUMER BEHAVIOUR”
Submitted to RAI BUSINESS SCHOOL, New Delhi in partial
fulfillment of the requirement for the award of degree of Post
Graduate Program in Planning and Entrepreneurship
Submitted To
Prof. GUNJAN A RANA
Submitted By
MADHUSUDAN PATEL
(PGPP09A055)
Batch of JULY 2009-11 (Ind.Int.)
Specialization: Marketing
1
DECLARATION
I hereby declare that this detailed project report on “CONSUMER BEHAVIOUR” has been written and prepared by me. The project was done by me without any guidance and supervision. This is to declare that I have carried out this project work myself in partial fulfillment of the Post Graduate Program in Planning Entrepreneurship (PGPPE) Degree course of Rai Business School during 2011.
I further declare that this project is the result of my own effort and has not
been submitted to any other centre or institution or published anywhere earlier for the
award of any Diploma/Degree.
Madhusudan Patel
PGPP09A055
New Delhi
2
ACKNOWLEDGEMENT
A Project Report can’t be completed without the guidance, assistance, inspiration and
co-operation from various quarters. This study also bears the inspiration of many
persons whom I would like to acknowledge.
It is indeed of great pleasure to express my senses of gratitude & indebtness to all the
people who have been instrumental in making my project work a rich experience.
I express my sincere feelings of gratitude towards Prof. GUNJAN A RANA, who has taught me so well to make my report highly result oriented.
Last but not the least, I am grateful to all those people who have directly or indirectly
helped me in making this project a successful one.
3
TABLE OF CONTENTS
Page No.
Abstract…………….…………………………………………...-6
Chapter-1 - Introduction…………………………………..….7-13
Chapter-2 – Industry & Company Profile India Processing
Industry………………………………………....14-18
Chapter-3 – Finding And Analysis……. ……………………19-27
Chapter-4- Research Objective And Methodology….………...-28
Chapter-5- Data Analysis Interpretation………….…………29-42
Chapter-6- Conclusion & recommendation ………………..43-44
Conclusion......................................................…………………-44
Bibliography……………………………………………………-45
Appendix, Questionnaires …………………………………..46-48
4
ABSTRACT
Around 1,000 snack items and 300 types of savories of diverse tastes, forms
textures, aromas, bases, sizes, and fillings are sold in India1. Potato chips
and potato based products are by far the largest product category with over
85 percent share of the salty snack market, followed by snack nuts, chickpea
and other pulse-based savory snacks. Popcorn, diet snacks (soy nuts, bread
sticks), breakfast cereals, baked & roasted snacks (biscuits, specialty breads,
chocolate coated snacks, cookies etc.) and cheese snacks are in high
demand across organized retail chains. Health foods, health food
supplements and convenient foods are also rapidly growing segments.
The present study was undertaken to analyze the impact and role of
advertising in the Consumer behavior towards “ITC-Bingo”.
In the branded snacks 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. Out of these ITC’s Bingo is a new entrant in the market, which was
launched in 2007. ITC has launched Bingo in a wide variety of flavors and
formats, ranging from potato chips to finger snacks. Because of its different
and catchy advertisements Bingo has created a buzz in the market.
Therefore, my aim was to find out the most popular flavor of Bingo among all
the offerings. The analysis was undertaken by dividing people into those who
like to eat snacks and those who don’t. The study is based on the survey of
people who like to eat snacks. To collect the data a questionnaire was
designed and the survey was conducted in Delhi.
6
CHAPTER-1
INTRODUCTION
Snacks are a part of Consumer Convenience/ Packaged Foods segment.
Snack is described as a small quantity 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 APEDA 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 mind-
boggling 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. As per an industry estimate, the
branded and organized snack food segment dominated by major players such
as Frito Lay, Con Agra, Kellogg’s, Marico, Dabur, HLL, ITC, Parle, Haldiram’s,
Nestle, Britannia, Cadbury, Bikano and Balaji is estimated to grow by 15 to 20
percent per year; whereas the growth of un-branded snack food is likely to
grow modestly at 8 percent per year in the near future (table 1).
7
Product pricing for branded products are normally 15 to 20 percent greater
than for the un-branded food segment due to higher overhead expenses.
Snack food packaging ranges from 35/40 gm sachets to 400 gm economy
packs. Small packs work very well in India.
Table 1: Overview of the Indian Snack Food Business
Import Market
India’s imports of snacks/snack food ingredients rose from $10 million in CY
2002 to $30 million in CY 2006 (chart 1). Food items under the sweet snack
category constituted the major share of imports and imports rose from $10
million to $29 million (94 percent of total imports in CY 2006). Major exporters
of snack foods/food ingredients to India are the United States, Malaysia,
Indonesia, Thailand, China, Singapore, South Korea, Switzerland, UAE,
Australia, U.K., Germany, South Africa and Portugal.
8
Chart-1: Total Import of Snack Foods/Snack Food Ingredients in India
CY 2002-2006
Although the share of U.S. snack food in total imports of snack foods is small,
it is growing rapidly2. Exports of U.S. snack foods to India increased almost
ten times over the past six years. The value of U.S. snack food imports rose
from $570,000 in CY 2002 to $5 million in CY 2007, while quantity grew from
347 MT to 2,374 MT (chart 2).
Chart-2: Import of U.S. Snack Foods to India CY 2002 to 2007
9
The value of U.S. salted snacks increased from $429,000 in CY 2002 to $3
million in CY 2007; however its share in total imports of U.S. snack foods
declined from 75 to 60 percent in CY 2007. Meanwhile, the value of sweet
snacks increased from $141,000 in CY 2002 to $ 1.82 million in CY 2007, with
its share of total U.S. snack food imports growing from 22 to 37 percent in CY
2007 (chart 3).
Chart-3: Import of U.S. Sweet and Salted Snacks CY 2002 to 2007
Snack foods that registered significant growth in U.S. exports from CY 2002 to
CY 2007 were potato chips (prepared/preserved), confectionery (containing
sweetening agent instead of sugar), popcorn (microwaveable package & ex
seed), confectionary, sweetmeats (without containing cocoa), chewing gum
(whether or not sugar coated), cookies (sweet biscuits), corn chips and similar
crisp savory snacks.
In CY 2007 potato chips, confectionary and popcorn constituted almost 68
percent of India’s snack food imports from the United States. Imports of potato
chips rose from
$332,000 in CY 2002 to $2 million in CY 2007, popcorn rose from $454,000 to
$936,000 and confectionary (sweetening agent) rose from $70,000 to
$253,000 (chart 4).
10
The market for frozen snack foods is limited due to lack of refrigerated
warehousing and transportation facilities. Imported food items are largely
confined to organized retail and grocery stores, catering mostly to high end
consumers.
Chart-4: Major U.S. Snack Foods Imported to India CY 2002 to 2007
Most U.S. products are trans-shipped through regional hubs, such as Dubai
and Singapore, due to their more liberal trade policies, efficient handling, and
reduced transport times. Transport time from California to India is at least 30
days, and in some cases as long as 45 days. The primary points of entry are
Mumbai followed by Chennai and Calcutta. Container handling facilities are
available at most major ports and in several cities.
11
Table 2: Indian / Multi-national Companies in the Snack Food Segment
In this research we intended to find out the most popular flavor of BINGO in
the market from the selected sample. Snacks as such are a very minor part of
the food processing industry because snacks sector is largely unorganized.
The project purports to decipher the satisfaction level as well as the
preferences of consumers pertaining to the various flavors of BINGO- a new
range of savory snacks launched by ITC. The aim was to analyze the
success, marketability and future growth prospects of BINGO. The aim was
also to study the spending habits and motivation of consumers for buying
snacks.
12
For this a survey was conducted in Delhi where respondents were asked to fill
a questionnaire. The data was collected and analyzed to obtain conclusions.
This report carries an introduction of the company profile, detail of the
methodology followed detailed data analysis and the results so obtained with
the variety of graphs along with given.
13
CHAPTER-2
INDUSTRY & COMPANY PROFILE
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 favorable 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 and eggs, meat and meat products
Industries related to bread, oilseeds, meals (edible), breakfast foods,
biscuits, confectionery, savory 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
14
Aerated water and soft drinks
Specialized packaging for food processing industries.
The Ministry of Food Processing Industries, GoI, 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%.
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
15
INDIAN SNACKS INDUSTRY:
Snacks are a part of Consumer Convenience/ Packaged Foods segment.
Snack is described as a small quantity 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 Apeda 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 mind-
boggling 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
16
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 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 Infoline. 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 manufacturers 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.
SWOT Analysis of Snacks Industry
Strengths
Abundant availability of raw material
Vast network of manufacturing facilities all over the country
17
Vast domestic market
Urbanisation
Weaknesses
Low availability of adequate infrastructural facilities
Lack of adequate quality control & testing methods as per international
standards
Inefficient supply chain due to a large number of intermediaries
High requirement of working capital
Opportunities
Rising income levels and changing consumption patterns
Favourable demographic profile and changing lifestyles
Integration of development in contemporary technologies such as
electronics, material science, bio-technology etc. offer vast scope for
rapid improvement and progress
Opening of global markets
Threats
Affordability and cultural preferences of fresh food
High inventory carrying cost
High taxation
High packaging cost
Competition between national and regional players.
18
CHAPTER-3
FINDINGS AND ANALYSIS
Snacks are a part of Consumer Convenience/ Packaged Foods segment.
Snack is described as a small quantity 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 Apeda 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 mind-boggling 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 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 Infoline. The
19
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 manufacturers 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.
MARKET AND COMPETITION
Indian Foods market is a monopolistic market. There are many competitors in
all the categories and although they all have similar products available at
similar prices, they are trying to prove themselves different through their
marketing strategies. However, entry to this business is easy and ITC has
utilized this fact very efficiently to their benefit as they entered into the several
categories among this Foods business.
READY TO EAT
ITC entered into the branded and packaged foods business in with the launch
of Kitchens of India brand. In 2004, the company launched KoI brand fruits
and spice conserves and cooking pastes. The fruits and spice conserves,
were developed jointly with Karen Anand, a food expert. Priced at Rs. 70,
these were targeted at the premium segment. The KoI cooking pastes, which
were priced at Rs.30 for a 100g pack, also targeted the high-end market.
20
Multi-purpose cooking pastes were also launched under the Aashirvaad brand
and these were priced at Rs. 10 for 80g pack. The manufacturing of these
products was outsourced to contract manufacturers for saving the operating
cost.
ITC entered the branded spices market in 2005 and the Instant Mix segment
in 2006, both under the Aashirvaad Brand. As on April 2006, the total turnover
in the Indian ready-to-eat and ready-to-cook segments was only around Rs.
700 million, but it continued to post an annual growth of 20%. By early 2006,
though ITC had captured a 35% market share in the ready-to-eat segment,
MTR was the clear market leader with close to 60% in market share. ITC
exported 40-50% of KoI brand products (in terms of volumes) to the US,
Canada, the UK, Switzerland, and Australia.
In May 2006, ITC planned to introduce ten more varieties under the KoI brand within
a price range of Rs. 35 to Rs. 98. In 2007, some new products have been launched
under Ready To Eat category like chutneys, curries, conserves, biryanis (Noor Mahal,
Bhori Biryani and some new range of products under Gharana (Paneer Malai, Keema
Mutter). After launching all these products ITC FOODS is looking to share 50 to 60%
of market by 2008-2009.Following are the major competitors ITC is competing with
in Ready to Eat category:
Brands Description
Gits
Gits produces the selected range of popular ready to cook and
instant foods that cover a range of ethnic Indian cuisine-and
where the recipes have "Global pallete acceptance".
Haldirams
Offers packaged Bhel puri chats such as Sev Puri, Chana
Masala, Samosa, Pakoras, Alu Tikki, Pao Bhaji, Gol Gappa,
Dhokla among others
Ethnic
Kitchens
Offers packaged sweets,syrups,namkeens, cookies, pickles,
aloo Masala, Bhujia, Bhelpuri, Chana Dal, Kajui Ladoo and
many more items.
21
MTRMTR foods currently comprise twenty-two delicious and
completely authentic Indian curries, gravies and rice.
Priyafoods
Priya has a range of popular traditional recipes starting from
Dal Makhani, Navaratan Kurma to Palak Paneer, Paneer Butter
Masala, Punjabi Chhole and Rajma Masala along with true
southern delicacies like Andhra Veg Pulav, Mango Dal,
Gongura Dal.
Market Share - Ready To Eat
48%
35%
8%
9%ITC Ltd.
MTR
Kohinoor
Others(Gits, PriyaFoods etc.)
as on June, 2009
CONFECTIONERY
Confectionary market in India is about Rs.2500 crore. It is loosely divided into
seven categories:
1. Hard boiled candies
2. Toffees
3. Eclairs
4. Chewing gum
5. Bubble gum
6. Mints
7. lozenges
22
ITC has currently in market with its two brands “Mint-o” and “Candyman”.
ITC’s Mint-O fresh secured a 17% share of Indian cough lozenges market
ahead of former leader Perfetti which only achieved 14.3% with chloromint.
The Indian giant marked the confectionary sector in 2002 and has only two
brands “mint-o fresh” and “Candyman”. But in overall confectionary market
they are lagging behind having just 3% market share as compared to market
leader Perfetti with more than 37% market and providing larger number of
brands.
Market Share - Confectionery
3%
37%
11%7%
42%
ITC Ltd.
Perfetti Van Melle
Cadbury
Nestle
Others(Parle,Joyco, HUL etc.)
as on June, 2009
BISCUITS
Indian biscuit market is estimated to be around 5000 crore. Biscuit industry in
India in the organized sector produces around 60% of the total production, the
balance 40% being contributed by the unorganized bakeries. ITC with its
premium product, SUNFEAST, is acquiring a big share of market. Within few
years, they are able to get 12% share of the market.
23
Britannia ITC Ltd
(Sunfeast)
Parle Priyagold
Tiger
Nutrichoice
Junior
Good Day,
50 50,
Treat
Pure Magic,
Milk Bikis
Good
Morning.
Marie
Dream cream
Milky Magic
Fit kit
Choco Nut
Butter Nut
Parle-g
Krack-Jack
Monaco
Kreams
Hide and Seek
Milk Shakti
Butter Bite
Classic Cream
Butter Lite
Big Boss
Marie Lite
Magic Gold
Market Share - Biscuits
12%
10%
38%
32%
8%ITC Ltd.
Priyagold
Britannia
Parle
Others(Bonn,Anmol etc.)
as on June,2009
24
BINGO!
No Confusion Great Combination
ABOUT BINGO
The Bingo brand of chips was launched by ITC on 14th March 2007 with an
aim to capture at least 25 percent market share of the Rs 2000 crore branded
snack market within five yrs. The launch is symbolic of ITC Foods' distinct
approach of introducing innovative and differentiated products in a largely
undifferentiated market place. Bingo’s launch was strategically timed around
the World Cup. The idea was to get the consumer to take that first bite.
This was an extremely ambitious target according to observers as the market
was dominated by the Frito Lay group (owned by Pepsi Co) with a slew of
brands like Lays, Kurkure and Uncle Chipps holding 50 per cent of the market
share. The other was the Haldiram group with 25 percent of the market share.
Bingo’s portfolio includes an array of products in both Potato Chips & Finger
Snacks segment. Bingo! is positioned as a youthful and innovative snack,
offering the consumers a choice of flavours that are fast becoming popular.
Bingo used combination of leveraging synergies, building on consumer
insights and high decibel advertising can win the game. The company
leveraged its existing distribution network and relationship established with
farmers. Its earlier foray into categories like atta and biscuits had already
given it access to the supply chain.
25
BEFORE THE LAUNCH
Research: After making the decision to launch Bingo it started by sending a
cross-functional team of eight individuals were sent across the country to
research the snacking habits of the Indian consumer. After travelling to 14
cities and speaking to more than 1,000 people, the team came back with an
insight that Indian consumers were looking for novelty and excitement in
existing snacks.
The team found that while vada pavs and samosas still sell vada pav with
cheese and paneer-filled samosas, or for that matter, tomato-flavored khakra
were the ones that excited the Indian consumer. Based on this information,
the company decided to look at chips with innovative flavors.
Taste: For the recipes, the company went to the chefs in its hotels. The chefs
came up with 16 flavors with innovative twists like bindaas masti chaas,
chatkila nimbu achar and tandoori paneer tikka-flavoured potato chips, chilli
and tomato-flavored mad angles — inspired by khakras — and other snacks.
The organized snacks category is subdivided into the Traditional segment
(Bhujia,Chana etc) dominated by Haldiram. The second category is the
Western segment (potato chips,cheese balls,puffs etc) and the Finger snacks
segment which is an adaptation of traditional snacks to the western format.
The latter two categories are dominated by the Frito Lay group. ITC has
launched an aggressive marketing campaign to gain entry into and capture a
sizeable market share in the extremely competitive world of snack foods.
Bingo’s success in the market is backed by ITC’s strong distribution network,
which allows it to stock its products in shops that previously did not sell snack
food. Additionally, ITC Foods provides shopkeepers with plastic molded
shelves that allow local vendors a convenient way to stock their product, and
the company benefits by increased visibility for its brand.
The packaging is very attractive with dominant variant color, crimp border
colors and a pictorial view of the flavor. This property of flavor depiction is
very informative for consumers and a layman can also associate with it. Bingo
26
has a unique musical sound that is loved by everyone. It is one of the
properties that are remembered by everyone and it is used to recall the brand
by every age group.
MAIN COMPETITORS:
1. Frito-Lay
Lays
Kurkure
Uncle Chipps
Cheetos
2. Haldiram
3. Regional Players like Balaji
COMPARISON OF PRICES:
Product Price
(ITC Ltd)
Product Price
(Frito Lay)
Product Price
(Haldiram)
Bingo
Rs. 5
Rs. 10
Rs. 20
Lays
Rs. 5
Rs. 10
Rs. 20
Uncle Chipps
Rs. 10
Rs. 20
Kurkure
Rs. 5
Rs. 10
Rs. 20
Namkeen
Rs. 5
Rs. 10
Rs. 20
27
CHAPTER-4
RESEARCH OBJECTIVE AND METHODOLOGY
RESEARCH OBJECTIVES
To point out the positive and negative aspects of advertising (print &
electronic media)
To analyze the impact of advertising (print & electronic media) on
customers’ buying behavior, particularly in case of “ITC-Bingo”.
To obtain the customers’ response and attitude towards advertising (print
& electronic media) carried out by “ITC-Bingo”
RESEARCH METHODOLOGY
Secondary Data: News Papers, books, internet, Reports, Business
magazines
Tools: Bar Diagrams, pie-charts, tabulation
Sampling method: Random sampling method
Sample size: 100
Target audience: Interviews and Questionnaires with the Consumers in
FMCG Sector
28
CHAPTER-5
DATA ANALYSIS & INTERPRETATION
In order to extract the meaningful information from the data collected an
analysis of data is done using pie charts, bar graphs etc.
The first objective of the research project is concerned with finding out
what percentage of people likes to eat snacks. The chart given below is
clear on the percentage of people who like to eat snacks.
Ques 1:- Do you eat snacks?
Comments: -The primary and the secondary form of data collection, says that
nearly 100 percent of the people love to eat snacks. The snacks are the
compliment for the Hot and Cold Beverages Company. People always
consume it with Tea, Coffee or with Cold Drinks.
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Ques 2:- Have you Heard of ITC Bingo?
Comments: -As per the survey done, the 90% people know about the ITC
Bingo. The Bingo has a good image over the students (Less than 25 years)
and male (25-35years) but the females (25-35 years) are not much aware
about the product. The Kurkure is more popular in Female segment. There is
a need to advertise in such a manner, so that the product can target females
too.
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Ques3:- Have you ever Tried Bingo?
Comments: -The Bingo is almost consumed by almost 80 percent of the
people. The student inspired by the advertisement and buy to try the new
flavor of bingo where are the Male consumed it with the beverage in party or
with friends. The important segment of Females (25 – 35 years) are less
aware about and are happy with their existing product, so they less tried it.
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The second objective is concerned with finding out which flavor of
Bingo is most preferred.
Ques 4:- Which flavor do you like most?
Comments: -The most popular flavor of Bingo is Tedhe Medhe and Mad
Angles in the student group. The Males prefer Tomato Potato Chips and the
Females prefers Masala Potato chips and Nimbu achar flavor. The reason of
Bingo popularity is due to different flavors.
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Ques 5:- How many times do you consume BINGO?
Comments: -Although ITC Bingo is very popular but the everyday
consumption of BINGO product is very less in compare to other snacks. In the
question all the 3 segments (Students, Males, Females) are not consuming it
on the daily basis, Most people consume it on the once in a week or less
basis.
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Ques 6:-How much do you weekly spend on snacks?
Comments: -This is the most important and interesting area of the survey,
The student group who consume Bingo only are spending less than 50 Rs.
Weekly on snacks where as the males and females are spend 50-100 Rs per
week on their snacks consumption. The married couple are spending more
than 100 Rs on snacks, but they also prefer the other brands too (like
Kurkure, Lays etc)
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Third objective was to find out how much people are satisfied with Bingo.
Following pie chart shows the satisfaction level of people
Ques 7:-How much satisfied are you with Bingo?
Comments: -The Males are very satisfied with the Bingo product as it is the
ITC product. Whereas flavor conscious students are satisfied or unsatisfied
with the Bingo product and the health conscious Females are very unsatisfied
with the bingo product.
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The Fourth objective was to analyze the reasons for the popularity of
the most preferred flavor. For this the respondents were asked what do
they like most about Bingo. Following pie chart shows their responses.
Ques 8:-What do you like about Bingo?
Comments: -The majority of males and females like the taste of the bingo
product but the student segment like BINGO because it offers a lot of verity
and flavor. As it is the ITC product so, it has a good image in the public eyes
in terms of quality.
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Ques 9:-Is the price of Bingo is satisfactory?
Comments: -Nearly all the snacks available in the market is about the same
price so all the 3 segments are satisfy with the price, where as few people
wants that the price must be according to flavor. The price must be
competitive so the people can switch on with the Bingo product.
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Ques 10:-Compare to other snacks (such as Kurkure, Lays, Haldiram
etc) that are available, would you say that Bingo is?
The Fifth objective was to find out the preferences of people for different
brands. Here, we aim to find out the most popular brand of snacks
excluding Bingo.
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Comments: - In the above graph we can see that Kurkure is the most popular
brand among people followed by Uncle Chips and Lays. Next is Bingo and
Haldiram’s Namkeens.
The males are satisfy and mush satisfied with Bingo. Students are somewhat
satisfied or same satisfied with bingo where as females are not very much
satisfied with Bingo product. The second chart shows that still kurkure is the
market leader of the snacks, then people prefer bingo and then the other
products.
Ques 11:-How likely are you to recommend BINGO to others?
Comments: -The majority of the people are in favor to recommend the bingo
product. The main advantage of bingo product is it available in a lot of Varity.
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Ques 12:-How did you first discover BINGO?
Comments: -The bingo advertisements make it popular in all segment and
few people first tried bingo when offered by friends/family member with
beverages.
Ques 13:-Before switching on to BINGO, which snack did you prefer?
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Comments: -As the price of bingo is not very much competitive so the people
are still consuming the other snacks like kurkure and lays, even haldiram
Namkeens are also preferred by consumers to serve the hot and cold
beverages.
Ques 14:-What do you considered while buying Bingo?
Comments: -The student and the Males segment buy the snacks on the
basis of their flavor whereas females (health conscious segment) are buying it
because of the quality. The availability and brand ambassador are not very
much preferred by any of the segment.
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SUMMARY OF OTHER FINDINGS
16 people out of 36 people who like to eat snacks feel that as compared to
other brands Bingo is much better. Other 12 feel that Bingo is somewhat
better and 8 feel that Bingo is about the same as other brands. None feel that
Bingo is somewhat worse or much worse than other brands.
When asked how often they eat Bingo 22 people said once a week or more
often, 11 people said everyday and 3 people said 2-3 times a month.
After conducting the survey we are in a position to say that ever since its
launch Bingo as a preferred brand is on a rise. Although Frito Lays is the most
popular brand Bingo has carved a niche for itself. Bingo is in the growth stage
of its life cycle. Given more time it is capable of capturing a larger market
share and giving tough competition to other brands.
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CHAPTER-6
CONCLUSION & RECOMMENDATION
CONCLUSION
Although Frito Lays is the most popular brand Bingo has carved a niche for
itself. Bingo is in the growth stage of its life cycle. Given more time it is
capable of capturing a larger market share and giving tough competition to
other brands. Its focus is more on product innovation and distribution and
invests heavily in promotion. In the coming years it will become a dominant
player in the domestic market.
RECOMMENDATION
Brand Packaging: Bingo can come up with different shapes of packaging.
Different packaging always attracts consumers. Usage of different colors
for packaging will be helpful as the customers will be able to differentiate
among various products.
Brand promotions: Company can opt for seasonal promotions. Gift packs
or combos with 4-5 flavours can be introduced. Can tie up with beverages
like Coca Cola during festive season or can sponsor events like cricket
tournaments etc.
Advertising: The existing advertisements have been successful in creating
brand awareness. Now its time to focus more on taste and variety of
flavours, tempting the consumers to purchase the product. An animated
character can be used to describe the flavour.
Flavours: Having too many flavours is causing some problem because the
customers are not able to differentiate between different variants. Even
though it’s a good strategy as people are forced to try each flavour, the
ones which are not going good in the market should be removed from the
company’s portfolio. This would reduce the problem of confusion amongst
the consumers.
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Contests: The company should launch a contest like “Send in your Bingo
recipe” which can help the company to increase its market share.
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BIBLIOGRAPHY
1. www.itcportal.com
2. www.allbusiness.com
3. http://www.financialexpress.com/news/Just-munch-it/271873/0
4. www.wikipedia.org
5. www.moneycontrol.com
6. www.economictimes.indiatimes.com
7. www.bingeonbingo.com
8. www.google.com
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APPENDIX
QUESTIONNAIRE
Name: _________________ Age : ___________ (DD/MM/YY)
Signature: _______________ Email : __________________
General Instructions:
1. Answer all questions.
2. Indicate your answer by marking a tick against an appropriate option.
3. Mark only one option in all questions.
Q1. Do you like to eat snacks?
Yes No
Q2. Have you heard of ITC’s BINGO?
Yes No
Q3. Have you ever tried BINGO?
Yes No
Q4. Which flavour do you like the most?
1. Masala Potato Chip
2. Salted Potato Chip
3. Tomato Potato Chip
4. Chatkila Nimbu Achar Potato Chip
5. Tandoori Paneer Tikka Potato Chip
6. Mad Angles
7. Tedhe Medhe
8. Livewires
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Q5. How often do you have BINGO?
Once a week or more often Everyday
2 to 3 times a month 2 or more per day
Q6. How much do you spend weekly on snacks?
Below Rs. 50 Rs. 50-100 More than Rs. 100
Q7. Overall, how much satisfied are you with BINGO?
Very satisfied Somewhat satisfied Unsatisfied
Q8. What do you like about BINGO?
Taste Variety Quality
Price Quantity Packaging
Q9. Is the price of bingo is satisfactory?
Yes No
If No (Please specify price, according to you) ____________________
Q10. Compared to other snacks (such as Kurkure, Lays, Haldiram etc.) that
are available, would you say that BINGO is?
Much better Somewhat Better
About the same Somewhat Worse
Much Worse
Q11. How likely are you to recommend BINGO to others?
Definitely will recommend Probably will recommend
Not sure Probably will not recommend
Definitely will not recommend
Q12. How did you first discover BINGO?
Advertising- T.V, Newspaper, Radio Friends/ Family
Saw it in store Other
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