A PROJECT REPORT ON MARKET POTENTIAL OF BINGO A PRODUCT OF ITC LTD.
SUBMITTED IN PARTIAL FULFILLMENT FOR MASTER OF BUSINESS ADMINISTRATION PROGRAM OF GRAPHIC ERA UNIVERSITY, DEHRADUN BATCH 2008 – 2010
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PREFACE The purpose of industrial training is to acclimatize the students with the organization & the industry in which this organization exists. Summer training is a part of management study & is very important for each & every student. Management trainees are trained in such a way that after they come out, they can manage the matters of organization in a planned and systematic manner. My project is aimed at understanding the marketing as well as selling concepts of new product launce. The ITC is well known in FMCG product categories and the new launch of Bingo product considered all the marketing parameter in mind at the time of launch. This training training was a valuable valuable experience experience in terms of understand understanding ing & learning & I believe that in future I will get fruitful results.
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PREFACE The purpose of industrial training is to acclimatize the students with the organization & the industry in which this organization exists. Summer training is a part of management study & is very important for each & every student. Management trainees are trained in such a way that after they come out, they can manage the matters of organization in a planned and systematic manner. My project is aimed at understanding the marketing as well as selling concepts of new product launce. The ITC is well known in FMCG product categories and the new launch of Bingo product considered all the marketing parameter in mind at the time of launch. This training training was a valuable valuable experience experience in terms of understand understanding ing & learning & I believe that in future I will get fruitful results.
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ACKNOWLEDGEMENT A project report seems to be an individual effort is in fact teamwork. Summer training at ITC Ltd., Saharanpur was just like an opportunity to shake hand with the practical world of business. I am indebted to all those individuals who helped me in gaining knowledge & insight into various aspects of organization. The source of learning have been one too many & a complete list of individual references would become encyclopedic. I want to express my deepest gratitude to all marketing team in ITC Ltd., Saharanpu Saharanpur, r, without without their help this this summer internship internship in ITC would would not be possible.
Finally, I would express my gratitude towards my classmates and my famil family y memb members ers thos thosee alwa always ys ready ready to help help me out out from from any any prob proble lem m throughout my summer internship.
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TABLE OF CONTENTS
1. Exec Execut utiv ivee Summa Summary ry 2. Lite Literat ratur uree Rev Revie iew w 3. Intr Introd oduc ucti tion on 4. Proje Project ct Obj Objec ecti tive vess 5. Introd Introduct uction ion of the the compa company ny 6. Prod Produc uctt Profi Profile le 7. Prod Produc uctt Laun Launch ch 8. Rese Resear arch ch Metho Methodo dolo logy gy 9. Anal Analys ysis is and and Findi Finding ngss 10.Statistical tools 11.Major findings 12.Suggestions 13.Conclusion 14.Limitations of the study 15.Bibliography 16.Annexure 17.Questionnaire
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1.EXECUTIVE SUMMARY The objective of the project is to know the consumers preferences for CHIPS, to study the Market Potential of
bingo and The report
contains a brief introduction of bingo.. The company ITC has interests in
various sectors and they provide consistent quality
products to meet our customer’s requirement worldwide. This report clearly mentions objective of the study and the research methodology utilized. Research design used in this project is exploratory and the sources of information is both primary data and secondary data. The data collection method used is structured non disguised questionnaire in which the types of questions used are open ended, multiple choice and close ended. The report contains a detailed view of the tasks, which have been undertaken to analyze the market ofBINGO. Various sets of questionnaire have been prepared to know the PREFERENCES of consumers about theBINGO. some of the research areas are saharanpur,dehradun.This project reveals one of the important findings like more and more displays of the window hiring and can be given to the retail outlets as it has been said that “JItna Dikhega Utna Bikega”. To increase its consumption, More schemes like ‘
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Seasonal Schemes’ and other schemes can be given to the consumers . A detailed survey of the consumers was carried to find out their preferences for BINGO. The details of the methodology are stated below. Areas are saharanpur,dehradun and rurkee research design: Exploratry and descriptive. Sources of information is primary and secondry data. Data collection method structured non designed questionnaire. Types of questions used open ended, multiple choice and close ended. Sampling method is random sampling. In this study I found that most of the consumers prefer LAYS as their 1st preference and then BINGO..the consumers prefer CHIPS because of its TASTE,INNOVATIVENESS and BRANDNAME .
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LITERATURE REVIEW : ABSTRACT: The purpose of this paper is the study of factors
responsible for brand preference in fmcg products from various study some factors are highlighted for preferring a brand like brand persona , brand constancy, brand loftiness, brand value. The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages. This study also reveals that there is low degree of brand awareness in rural areas, whereas there is a moderate degree of brand awareness in urban India. The highly educated rural and urban respondents have high degree of brand awareness for many food products, and the less educated rural and urban respondents have low degree of brand awareness for many food products.
1-A study of factors responsible for brand preference in fmcg sector”
The purpose of this paper is the study of factors responsible for brand preference in fmcg products, increasing competition, more due to globalization ,is motivating many companies to base their strategies almost entirely on building brands. Brand preference means to compare the different brands and opt for the most preferred brand.
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This brand preference is influenced by various factors. According to this study many factors were find out for preferring a brand like brand persona brand constancy brand loftiness brand value. In the identification of factors affecting the brand preference,it was concluded that brand persona is the most effective factor that affects the brand preference.this brand persona deals with the personality aspects or the external attributes of brand ,thus it can be said that consumer prefer any brand by looking at the external attributes of a brand.
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2-Colour and flavour rule consumer preferences: Study
A study done by DANONE it was found that The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages, says a new study involving Danone. But packaging and labelling are not as important for winning over consumers, according to findings published in the journal Food Quality and Preference, The study involved consumers at different stages of development and highlights the importance of adopting a “ sensory marketing approach, ” said the researchers from French research organisation Adriant, the University of Rennes 1, Danone R&D, and Institut Paul Bocuse. “Companies need to continuously innovate to maintain market leadership,”
wrote the researchers. “When the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumers.” “This experiment showed the feasibility of the proposed multi-
sensory design method based on mixed qualitative and quantitative approaches.” The study also demonstrates the importance of flavour and colour selection for new products.
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The global flavours market was been valued at some US$18bn in 2006 (Business Insights). Meanwhile, the value of the international colourings market was estimated at around $1.15bn in 2007 (€731m), up 2.5 per cent from $1.07bn (680m) in 2004, according to Leatherhead Food International (LFI). Natural colours now make up 31 per cent of the colourings market, compared with 40 per cent for synthetics, according to LFI.
Bombarding the senses By choosing to formulate a new beverage, the researchers noted that the new product would need to be differentiated by improving the sensory characteristics. Four factors were identified for the formulation:(four colour intensities), three flavourings, two label types (soft versus hard), and two pack sizes (standard versus oversize). By using both quantitative (hedonic testing) and qualitative (focus groups) approaches, the researchers found that “the main factors which drive consumer preference for this concept are colour intensity and flavouring”. Indeed, colour intensity accounted for 43 per cent and flavour 32 per cent of the consumers’ overall liking. “Pack size and label type are taken into account by the consumer to a lesser extend,” they added. “This methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumers’ expectation: it has now to be reproduced, as every brand, concept and product is a unique combination designed for a specific consumer group,” concluded the researchers
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3- Taste or health: A study on consumer acceptance of corn
chips This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of corn chips. Eight types of commercial corn chips were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits. Data were analysed using factor analysis. Results revealed that purchase intent of corn chips was strongly related to degree of liking and to several key sensory attributes including saltiness, corn flavor and greasiness. These variables emerged as the first factor in the analysis,
suggesting that consumers perceive these characteristics as being most important in their choice of corn chips. Factor 2 described a health dimension and was related to respondents' attitudes toward fat in the diet. Factor 3 comprised two remaining sensory attributes (color and crunchiness), which apparently were of minor importance to the respondents. These data suggest that in spite of current concern about reducing dietary fat, health remains secondary to taste in the selection of corn chips for consumers in this population. 4- PAIRED PREFERENCE TESTS USING PLACEBO PAIRS AND DIFFERENT RESPONSE OPTIONS FOR CHIPS, ORANGE JUICES AND COOKIES
Preference tests were performed for varieties of potato chips, orange juices and chocolate chip cookies using three response protocols: the traditional paired preference test with the "no preference" option, a 9-point hedonic scale and a 6point hybrid hedonic/purchase intent scale. The different stimuli to be assessed
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were presented in pairs, but putatively identical stimuli were also presented as a "placebo" pair. Performance on the placebo pair with identical stimuli provided a measure of the hidden demand characteristics of the test protocol. The presentation of the different pairs provided a measure of preference accompanied by such hidden demand effects. Comparison between the two allowed a better measure of preference per se. The order of presentation of the identical and different pairs did show occasional slight evidence of contrast effects. For the placebo "identical" pairs, a majority of consumers reported false preferences. Liking questions with the hedonic and hybrid scales elicited fewer false preferences than preference questions with the paired preference protocol. Yet, the effects tended to be slight. The 6-point hedonic/purchase intent scale exhibited the fewest false preferences in the placebo condition, and this was because of its fewer categories rather than any cognitive strategy change elicited by its different labels.
5-“consumer awareness and consumption pattern of food products” This paper aims to investigate the degree of brand awareness of various food products in relation to background and education of the household, the consumption pattern of various food products consumed by respondents in the light of their areas, income levels and education. A sample of 200 respondents comprising 100 form rural area and 100 from urban area were taken. Data are analysed with the help of mean. SD, co –efficient of variance, t-test and f-test.
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The findings of this study reveals that there is low degree of brand awareness in rural areas ,whereas there is a moderate degree of brand awareness in urban India.the highly educated rural and urban respondents have high degree of brand awareness for many food products, and the less educated rural and urban respondents have low degree of brand awareness for many food products.
6- Snacks and Namkeen - Comprehencsive Study Indian snack food industry comprises of many Indian as well as MNCs. The Indian snack market reached a value of $307.7 million in 2001. The Indian snacks food market is of the order of 400,000 tones. This wide range of products are categorized under Potato / Banana Chips, Namkeens & Fun-Foods. The organized market for chips is estimated to be 6500 tons valued at Rs.2 bn. The market for branded chips has been growing at a fast pace of around 20-25 % annually. Since the majority of MNC's entered their venture in Ready-To-Eat Snacks & Namkeens. The project was conducted to study the overall industry for ReadyTo-Eat Snacks & Namkeens. The research was conducted to study the actual buying behavior of the consumers and their preference for such a category of food. Research methodology being exploratory research Questionnaire method to interview consumers as well as retailers was adopted. Retailers were surveyed to know the actual market behavior, whereas the consumers were surveyed to know their preference and factors affecting their purchase. Secondary data on industry is collected through Internet, magazines & by visiting the people in the
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industry.The Research was a good experience & the final conclusion is that the consumers generally associate Ready-To-Eat Snacks & Namkeens with Time Pass. Majority of them prefers wafers to be their first choice with Fraiams being the second preference. Namkeens on other hand are usually preferred as hunger quencher and are eaten whenever the consumers are hungry.Ready-To-Eat Snacks & Namkeens are generally considered as take away food and hence the consumers generally buy 1-2 packs and does not store them. Through the research it was concluded that the consumers want even POPCORN to be included in this category which is also an opportunity for the manufacturers to launch a new product and extend their product width. Overall the industry is grooming and has vast opportunity to be cashed for the manufacturers.
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3.INTRODUCTION OF THE STUDY
3.1 OBJECTIVE OF THE STUDY •
To study the consumers preferences for BINGO.
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To know the percentage of males and females that are aware about bingo
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To know which brand’s advertisement mostly people have seen .
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To know the reason to buy chips .
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•
To know why was the advertisement being noticed by the consumer.
•
To
create
a
top
of
mind
awareness
about
BINGO
in
Saharanpur,Dehradun and Rurkee by providing the information to consumers.
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3.2 COMPANY PROFILE ITC is one of the India's foremost private sector companies with a market
capitalization of nearly US $ 15 billion and a turnover of over US $ 4.75 billion. ITC has a diversified presence in Cigarettes , Hotels , Paperboards & Specialty Papers , Packaging , Agri-Business , Packaged Foods & Confectionery , Information Technology , Branded Apparel , Greeting Cards
, Safety Matches and other FMCG products . Activities
FMCG: ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. 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. ITC 's Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. ITC is blending its core capabilities to market a growing range of greeting, gifting & stationery consumer products. As part of ITC 's business strategy of creating multiple drivers of growth in the FMCG sector , the Company has commenced marketing safety matches and agarbattis (incense sticks) sourced from small-scale and cottage units. Hotels: ITC Welcome group brand has become synonymous with Indian
hospitality. Today amongst India's finest and fastest growing hotel chains, it consists of over 70 hotels across different destinations in India. These include super deluxe and five star hotels, heritage palaces, havelis and resorts and full service budget hotels. Paperboards & Packaging: ITC is one of the world's most modern and
contemporary manufacturers of packaging and graphic series of boards. ITC 's Packaging & Printing Business is the country's largest converter of paperboard into packaging.
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Agri-Business: ITC 's International Business Division (IBD) is the country's
second largest exporter of agri-products. ITC pioneered the cultivation and development of Cigarette Tobaccos in India . Information Technology: ITC Infotech India Ltd., a global IT services company,
has established itself as a key player in the offshoring arena, growing at a cumulative annual growth rate (CAGR) of around 85%.
3.3 PRODUCT PROFILE Bingo : A Challenger Brand Brand : BingoCompany: ITC Bingo is ITC's challenge to the monopoly of Frito Lays.In March ,ITC launched Bingo in the highly fragmented Rs 4500-5000 crore ($1 Billion) snack food market.Indian snack food market is dominated by unorganised sector. The organised snack foods market is only Rs 2000 crore and is dominated by the iconic Lays brand with over 77% market share. Having tasted success in Biscuits, staples and Ready to eat market, Bingo will be another test for ITC's marketing muscle. It fights in this segment with none other than Pepsi. Indian snack food market is divided into : Traditional Snacks ( bhujiya, Chanachur etc) Western Snacks and the newly created Finger snacks segments. Bingo is entering both the potato and finger snacks market. According to the company press release, Bingo comes in 16 flavors. Its potato snack has 4 innovative variants taking into consideration the taste difference across Indian market. The Finger snacks line has six variants.The TVC's are now on air and the company intends to position this brand as a fun brand targeting at the youth. The brand tries to differentiate from Lays by focusing on innovation (in flavors). Snack
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foods : because of the low financial risk (low price) for the customer, new tastes will be a key in marketing success. Lays succeeded by offering great quality, variety and brand to reach the leadership position. Bingo it seems is following the leader. The task is very tough for ITC to fight with Lays. The golden line is that the market is so large that every player will have a space provided, the brand keeps the promise. The high profile brand launch of Bingo will see the market expanding thus benefiting all the players . ITC is aiming at a 360 degree brand building effort to boost the new launch. The brand takes the tagline : No Confusion Great Combination. The brand is promoted through a series of
funny ad which I feel is little too complicated. The ad tries to be funny but fails to make the audience laugh. The poor execution can create problems for the brand.
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ITC’S BINGO: SUCCESSFUL LAUNCH Business Standard's Annual Brand Derby has picked Bingo as the most successful launch of 2007. Vodafone was a close second to Bingo for its highly effective simple message: Hutch is now Vodafone. Ten months after it entered the category with its wafer snack brand, Bingo, ITC's foray into the Rs 1,800crore branded snack market has fetched the company a 16 per cent market share across the country (Source: AC Nielsen). What made the brand tick let's take a look
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 are looking for novelty and excitement in existing snacks.
Taste: For the recipes, the company went to the chefs in its hotels. The chefs came back with 16 flavours with twists like bindaas masti chat, chatkila nimbu achar and tandoori paneer tikka-flavoured potato chips, chilli and tomatoflavoured mad angles — inspired by khakras — and other snacks.
Targeting: The Company decided that youngsters in the age group of 16-30 are the most experimental and hence they would be the primary target audience.
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Marketing & Advertising: Bingo touched a chord with consumers through humour and irreverent advertising. On television, the company booked 10 to 15 spots per channel per day on youth channels such as MTV and Star World, mass Hindi channels like Zee and Star TV, and news channels. It also had around 20 spots on a variety of radio channels and advertised in most leading national dailies. In the top-30 cities, over 1,000 outdoor hoardings advertised the product. It also created a website www.bingeonbingo.com with offers, online games, downloads and even mobile games. According to industry estimates, ITC spent close to Rs 100 crore on marketing.
Distribution: The Company distributed more than 4 lakh large racks, to display the brand at all points of sale. The racks created so much impact that even competitors like market leader Frito-Lay's introduced its own version of wafer racks. This incredible leveraging of distribution system is credited by many as major cause of Bingo's success. Now due to this lays started doing re-branding exercise and introduced has introduced Lay's Chaat street, India's Mint Mischief and Wafer Style. Lays has relaunched itself in the health platform. Lays has launched the concept of Snack Smart which talks about a healthy snack. Now Lays is with 40% less saturated fat. That means same taste and more healthy.. The latest launch is in line with the announcement made by Pepsico's Global Chief Ms Indra Nooyi that the Company is moving towards a healthy platform. This initiative is intended to silence the critics that Potato Wafers are junk food.
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Together with the relaunch, Lays has introduced new flavors : Lay's Chaat Street, Mint Mischief and Wafer Style. The new variant which are Indian flavors is a result of the tough competition from Bingo. Its interesting to note that Bingo has forced Lays to relearn its own lessons. Lays had captured the Indian consumer's mind through Indianisation but later somewhere the brand lost its focus. The latest health positioning is definitely going to give Lays some additional leverage in the market. But Bingo is not sleeping either, if you have noticed the pack of Bingo , it says " Baked , Not Fried " to remind the consumer that no oil is used. The "Healthy " competition has started.... FritoLay India leads the market with a share of 45 per cent. Haldiram's and ITC have a market share of 27 and 16 per cent, respectively. The health positioning is something that maybe Lays is counting on, but that does not mean that Bingo cannot survive with its existing strategy of being a "Rich" snack.The technology of efficient & less fat production of potato has now been acquired by ITC as well.The superior Online advertising and huge market recall Bingo has got needs to now filtered into fewer brands, as the there are currently too many for the consumers to handle.
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ITC LAUNCHES BINGO MARKS COMPANY'S FORAY INTO THE EVOLVING SNACKS CATEGORY 'BINGO' SET TO TICKLE INDIAN SNACKING PALATE & CATER TO THE FAST GROWING SNACKING HABITS ITC Limited - Foods Division announced the launch of its new snacks brand Bingo, which marks the company's foray into the fast growing branded snacks segment. The launch of Bingo represents ITC Foods' fifth major line of foods business after the highly successful Staples, Biscuits, Ready-to-Eat and Confectionery businesses. Bingo is strategically timed around the World Cup to leverage the tremendous popularity that such leisure and cocktail snacks will find among cricket lovers in the country. So cricket lovers can enjoy their favourite matches while savouring an all-new range of innovative Bingo snacks during World Cup. The category of snacks is characterised by a few organised players with limited offerings but the unorganised sector continues to rule the market. However, the organised sector is one of the fastest growing FMCG categories with an estimated growth rate of 30% annually.the organised snacks category is subdivided into the traditional segment (Bhujia, chanachur etc.), Western segment (potato chips, cheese balls etc.) and the newly established Finger snacks segment, which is an adaptation of traditional offerings to the western format.
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The launch of Bingo is symbolic of ITC Foods' distinct approach of introducing innovative and differentiated products in a largely undifferentiated market place. The initial offerings from Bingo include an array of products in both Potato Chips & Finger Snacks segment. The Potato Chips offerings comprise of 4 innovative variants inspired by the snacking habits of different parts of the country as well as Masalas, Salted and Tomato flavours. Additionally a south-inspired dairy option has also been introduced under the potato chips offering. The offerings under the Finger Snacks segment are equally unique presentations with innovative finger foods like the pakoda inspired Live Wires, Khakra inspired Mad Angles and the specially developed time pass snack in the form of Tedhe Medhe. Each offering under this segment is available in two variants making it a total of 6 products in the Finger Snacks portfolio. Speaking on the foray into this new category, Mr. Ravi Naware, Divisional Chief Executive, ITC Limited - Foods Division said, "This is an exciting and
fast growing category with a big untapped market. We have extensively studied the market and our product development team has created products with variants that will hold tremendous appeal to the Indian consumer. We are confident that our retail distribution strength and our insightful understanding of consumers will help us redefine this category just like we have done in other categories. An added source of advantage is the strong farm linkages that ITC has developed for sourcing the selected grades of potatoes that go into the making of the chips."Bingo will own the platform of a youthful and innovative snack offering.
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The snacks will be available in packs priced at Rs. 5/- and Rs. 10/- Bingo will soon be available nationally across a majority of towns and cities. Mr. Hemant Malik, Head - Marketing, ITC Limited - Foods Division talking
about marketing plans for the product, said "The new brand will leverage the retail and marketing expertise of ITC Foods to establish reach across the target markets. The communication strategy encompasses a multi-media campaign for the entire product range including the use of new media for enhanced visibility. A spate of on-ground promotions distinctly communicating the product attributes and brand essence will further supplement Bingo's communication strategy. ! ITC sets sights on domestic frozen food market
Bingo! ITC se
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BINGO! ITC SETS SIGHTS ON DOMESTIC FROZEN FOOD MARKET The company will extend its Kitchen of India brand to frozen foods, which would include meals packaged in trays and snacks.ITC recently began exporting frozen vegetarian foods to markets such as the US and Canada, since exporting nonvegetarian foods out of India is restricted. The company is manufacturing the frozen foods range at its Bangalore facility, and will use the same to cater to the domestic market as well, ITC Foods CEO Ravi Naware told ET. This will be seventh food category ITC Foods will tap after kitchen ingredients such as atta, salt and spice, biscuits under the Sunfeast range, confectionery, ready-to-eat foods under the Aashirvaad range, instant mixes and pastas, and potato chips and snacks under the Bingo range. The frozen foods market is still nascent in India, estimated at only about Rs 2530 crore. Players in this category are limited and include Kohinoor Foods and Al Kabeer, in addition to a handful of other regional players. Issues such as freshness and taste have posed as hindrances to growth of this category in the Indian market. Asked whether the food division planned to tap newer categories in the short term, Mr Naware said: “We have lot of ground to cover in existing categories. Plans are underway to expand the confectionery and snack foods range.”ITC announced that its branded packaged food sales grew by 23% during the April-June 2008 quarter, though its net profits fell for the first time in nine quarters. In addition to increase in excise duties in cigarettes, the company
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attributed the drop in profits to continued brand-building costs in the food business.
ITC ,PEPSI CO BATTLE IT OUT IN WAFERS MARKET V B Kunal Singh, 45, is in the middle of the crossfire between packaged foods majors Pepsico and ITC. But this time the small-time snacks seller in Mumbai, much like others in his trade, is enjoying himself. Stocking flavoured potato wafer packs is no longer a wafer-thin business. Singh will not talk about exact margins, but he admits that Bingo the latest entrant has offered smaller shops like his, a margin that is 4-5 per cent higher than competitor Frito Lay’s. As tobacco-to-hotels major, ITC, set its eyes on this segment a couple of months back, with the launch of Bingo, this category is sizzling. Across the country the action is visible. In places like Bangalore, promotional events like games and competitions based on Bingo have become a regular feature at large malls like Garuda and Forum on weekends. The brand also tied-up with the Aerosmith rock concert. Pepsico’s snack foods company, Frito Lay, announced a major branding initiative for its Kurkure brand. About 35 AC BEST buses in Mumbai, followed by the Metro in Kolkata would be branded by Kurkure. The action is also visible at retail points. Small retailers, almost all of whom also sell ITC cigarettes, claimed they had been promised a premium if Bingo display was better. With its sole objective of deep distribution, ITC introduced mega-size wafer trolleys outside most mom-and-pop outlets. Lay’s, the top selling brand
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reacted with its own version of trolleys parked next to Bingo’s display. Of course there were some places where ITC Bingo blocked out its competition. Across the country, Bingo has laid claim to the large format outlets by tying-up with big retailers like Future Group’s Food Bazaar. But not all organised retailers believe in monopoly. At C3, Kolkata’s second largest retailer, Kurkure and Lays dominate the branded snack market. The retailer said they would rather offer choice to consumers. But there are genuine stock issues for Frito Lay, at least in some parts of Mumbai. Mumbai. In south Mumbai, Mumbai, a shop owner said, “We sell both Lays and Bingo. But we haven’t received supplies of Lays, which is in much demand, for the past one month.” Similarly, the owner of a distribution agency for Lays said there was a supply issue. The company executives could not be reached for comment. According to ITC Foods executives, the company has launched an advertising blitzkrieg across the country to create awareness among consumers. “The brand name name Bing Bingo o sign signif ifie ies s victory. We have have empl employ oyed ed vari variou ous s stra strate tegi gies es to successfully create an identity in the market in a short span of time,” said ITC Foods Foods Chief Chief Execut Executive ive Ravi Frito o Lay Lay is react reactin ing g with with consu consume mer r Ravi Naware. Naware. Frit promotions with different contests. The contest is being promoted through a television, radio and outdoor campaign, as well as interactive display units at the point of purchase. ITC claims that it has done its homework well. It spent close to two years for developing Bingo. The entry was prompted by the fact that there are few players in this segment. “We
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found that there was only one organised large player at the national level in the packe packed d snack snacks s segm segmen entt apart apart from from some some regio regiona nall play players ers.. There There is a big big opportunity for us,” says an ITC executive. He adds quickly that the market for the packed-snack-on-th packed-snack-on-the-go e-go segment in India is around Rs 2,000 crore and ITC is looking at grabbing a 50 per cent share of the market at the earliest. “We are offe offeri ring ng a wide wide rang range e to ensu ensure re that that the the cons consum umer er is not not rest restri rict cted ed to a monotonous taste,” adds Naware. But as of now, it’s still early days to say whether Bingo will emerge victorious. Foodworld representatives in Bangalore admit that Bingo has emerged as a “hot “It is bein being g repl replen enis ishe hed d on a dail daily y basi basis, s,”” a Food Foodwo worl rld d sellin selling” g” snack. snack. “It representative said. “We are replenishing the stock every day in all metros and cities with population in excess of 10 lakh,” Naware adds. But in metros like Kolkata, Kolkata, consumers have not yet switched over from Lays and Kurkure. Kurkure. Smaller outlets outlets in Kolkata Kolkata confirmed that sales of Lays or Kurkure had not dipped. dipped. “Frito Lay is still cashing in on the popularity and brand loyalty that it managed to establish with consumers over the years. Although consumers want to try Bingo, Lays or Kurkure have not been replaced.”
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PEPSI’S ‘LAY’ LOOSES OUT TO ITC’S ‘BINGO’ IN FUTURE ‘BAZAAR’ CHAINS Kishore Biyani owned Big Bazaar and Food Bazaar retail chains, part of the Future Group, which have stopped stocking PepsiCo owned Frito Lay’s wafers and other other snac snack k produ product cts, s, on acco account unt of marg margin in disp disput utes es,, have have now now been been replaced by ITC’s “Bingo” snack products, report PTI.Although, discussions to sort out margin related issues between Frito Lay and the Future group are believed to be in progress, none of the Lay’s products are available at any of the 57 Big Bazaar and 70 Food Bazaar stores.To make the matters worse for Frito Lay, the Future group has also introduced snacks in its private label called ‘Tasty Treat.’As reported earlier, the problem appears to have arisen on account of
regular discount offers on Lay products given by the retailer, which was not taken kindly by small kirana merchants, who account for bulk of brand’s revenues. Frito Lay is also said to be not inclined to increase the margins of the Future group, to comp compen ensa sate te for for disc discou ount nts s give given n on thei theirr prod produc ucts ts.B .Bin ingo go,, acco accord rdin ing g to knowledgeable sources, has become the brand of choice as PepsiCo is believed to have asked for a reduction of 5% in margin from 25% to 20%. In order to garner a decent share of the wafers market, which is dominated by the MNC brand, apart from a high voltage advertising campaign, ITC is offering about 5% higher margin than Frito Lay.Bingo is giving Pepsi a run for its money. While figures are not official, industry estimates that both companies agree with, that Pepsi’s share in the Rs 2000 crore-snack market has dropped from 60-45% since the launch of Bingo. ITC's retail success has forced Pepsi to renegotiate
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commercial terms with the Future Group, which runs Big Bazaar. Retail tie-ups, regional flavours and distribution muscle, have helped ITC hit a bull’s eye with its snack Bingo. ITC's tie-up with Biyani's Future Group hurt Pepsi hard by forcing the company to look at a revision of its commercial terms with the retail giant. While it’s been a flyer of a start, Pepsi still leads the overall Rs 2000 crore branded snack market with over 45% market share. Where ITC scores on distribution, Pepsi rides high on brand recall with Lays and Kurkure. But ITC says is confident of bridging the gap. Arch rival Pepsi on the other hand will increase focus on Lehar namkeen, a category where ITC is yet to bite into. Pepsi is looking to invest heavily on distribution. Apart from Rs 3 packs, to penetrate further, the company is looking at new retail points points like STD booths and cyber cafes as well. The company is also looking is upping spends to make inroads into the southern market, which continues to be dominated by regional players. Both players are now looking at cashing in on the festive buzz with new advertising advertising and product product offerings. offerings. Where ITC has 12-14 12-14 new flavours in the the pipe pipeliline, ne, Peps Pepsii hopes hopes to laun launch ch 8-10 8-10 diff differe erent nt flav flavour ours s this this year. year. As competition picks up, consumers are going to be spoilt for choice.
31
3.4 INTRODUCTION OF THE RESEARCH WORK
This report attempts to study the marketing mix keeping in mind the current market situation. Besides, this report also studies the customer feedback about the BINGO. Thus it can be said that there are two broad goals of the research i.e. TO STUDY THE CONSUMERS PREFERENCE FOR BINGO as a whole and
other to CREATE A TOP OF MIND AWARENESS OF BINGO. The research work was done through the collection of primary data and secondary data by a common questionnaire through the market survey technique. Thus; based on our research, we have made some conclusions and suggestions to make the performance of BINGO amongst all players better. I have selected this topic because there is high growth in snacks market and bingo is so much popular among consumers that we should know the reasons that why consumers are preferring bingo and other chips
32
3.5 RESEARCH METHODOLOGY A detailed survey of consumers was carried out to find out their preferences for BINGO The details of the methodology are stated below:
AREAS :
:
SAHARANPUR (New
madho road,Numaish camp,Aavas vikas) (Turner nagar,Raipur road)
road,
DEHRADUN
nagar,Nehru
Rajpur
road,
market,Court
Premnagar,
Patel
Rurkee ( Ram nagar )
Type of Research
:
•
Exploratory Research
•
Descriptive research
Research Question Consumer preferences for bingo Sampling technique Convenience sampling Sample Size : 800 Samplings Areas : Saharanpur,Dehradun,Rurkee : Primary Data Responses through •
• • • •
questionnaires
Secondary Data
:
•
Conducted personal interviews
•
with the respondents . Websites .
•
News papers
33
4. ANALYSIS AND FINDINGS
6.1 1.GENDER OF THE CONSUMER?
34
49%
male
51%
female
1.1
Valid Total
Male Female
406 394 800 Frequ ency
51.0 49.0 100.0 Perce nt
51.0 49.0 100.0 Valid Percent
51.0 100.0 Cumulati ve Percent
2.1
Out of 800 consumers,51% are males and only 49% are females .
35
2.AGE GROUP OF THE CONSUMER?
13%
3%
34%
BELOW 15 16-25 26-35
22%
36-45 46 & ABOVE
28%
1.2 MAXIMUM number of people surveyed are BELOW 15 YEARS
36
3. OCCUPATION OF THE CONSUMER?
3%
13% 9%
PROFESSIONAL BUSINESSMAN SERVICE MAN
49%
STUDENTS 26%
ANY OTHER
1.3
Valid
Total
Profession al Businessm an Service Student Any other
Frequen cy
Valid Percent
Cumulativ e Percent
Percent
100
13.0
13.0
18.0
75
9.0
9.0
22.0
210 390 25 800
26.0 49.0 3.0 100.0
26.0 49.0 3.0 100.0
48.0 97.0 100.0 100.0
2.3
OUT OF 800 PEOPLE 13%are professionals,9%are businessman,26%are serviceman,49%are students.
37
4.NUMBER OF PEOPLE PURCHASE CHIPS ?
Valid Total
Yes No
Frequen cy Percent 774 97.0 26 3.0 800 100.0
Valid Percent 97.0 3.0 100.0
Cumulativ e Percent 97.0 100.0
1.4
3%
yes no
97%
2.4 out of 800 respondents ,97% of consumers buy chips and only 3%of them do not buy chips
38
5. CHIPS PEOPLE BUY?
Frequency Valid
LAYS
Percent
Valid Percent
Cumulative Percent
264
33.0
33.0
33.0
112
14.0
14.0
47.0
273
34.0
34.0
81.0
101
13.0
13.0
94.0
Haldi ram chips
19
3.0
3.0
97.0
Soya pufs
27
2.0
2.0
99.0
4
1.0
1.0
100.0
800
100.0
100.0
kurkure bingo Uncle chips
Any other Total
1.5
1% 2%3% 13%
LAYS 33%
kurkure bingo Uncle chips Haldi ram chips Soya pufs
34% 14%
Any other
2.5
33% respondents prefer LAYS,14% prefer KUKURE ,34 %BINGO,13 % Of them prefer UNCLE CHIPS ,2% Haldirams chips ,3% prefer 39
soya pufs
6.REASON TO PURCHASE CHIPS?
Valid
Brand name Taste Brand ambassad or packaging Easy avialability Price Any other
Total 1.6
Frequen cy
Valid Percent
Cumulativ e Percent
Percent
160
20.0
20.0
20.0
204
25.0
25.0
45.0
88
8.0
8.0
158
10.0
10.0
63.0
66
16.0
16.0
79.0
124
20.0
20.0
8
1.0
1.0
99.0 100.
800
100.0
100.0
53. 0
0
TASTE 8%
1%
BRAND NAME 25%
11%
PACKAGING PRICE
15% 20% 20%
BRAND AMBASSADOR EASY AVIALABILITY ANY OTHER
2.6 25%people purchase CHIPS because of TASTE, 20% people purchase CHIPS because of BRAND NAME, 20% people purchase CHIPS because of PACKAGING, 15% people purchase CHIPS because of PRICE ,
40
11% people purchase CHIPS because of BRAND AMBASSADOR 8%people purchase CHIPS because of EASY AVILABILITY 1%people purchase CHIPS because of ANY OTHER REASON 7.PEOPLE HAVE SEEN THE ADVERTISEMENT OF CHIPS
Valid Total
Yes No
Frequen cy Percent 782 98.0 18 2.0 100 100.0
Valid Percent 98.0 2.0 100.0
Cumulativ e Percent 98.0 100.0
1.7
2%
yes no
98%
2.7 Out of 800 consumers 98% have seen the ADVERTISEMENT and only 2% have not seen the ADVERTISEMENT of any chips
41
8. ADVERTISEMENT PEOPLE REMEMBER THE MOST?
Frequency Valid
Valid Percent
Cumulative Percent
LAYS
214
27.0
27.0
27.0
BINGO
229
28.0
28.0
55.0
124
16.0
16.0
71.0
164
21.0
21.0
92.0
32
4.0
4.0
96.0
26
3.0
3.0
99.0
11
1.0
1.0
100
800
100
100
UNCLE CHIPS KURKU RE CHIPS( HALDI RAMS) SOYA PUFS any other Total
Total
Percent
1.8 LAYS
1% 3% 4%
BINGO 27%
UNCLE CHIPS
21% KURKURE
16%
CHIPS(HALDIRAM S) 28%
SOYA PUFS any other
2.8
27% people remember the advertisement of LAYS 28% people remember the advertisement of BINGO. 16% people remember the advertisement of UNCLE CHIPS 42
21% people remember the advertisement of KURKURE 4% people remember the advertisement of HALDIRAMS CHIPS 3%people remember the advertisement of SOYA PUFS 1%people remember the advertisement of ANY OTHER . 9.REASON TO REMEMBER THE ADVERTISEMENT ?
Valid
Creativity Brand ambassad or Idea of delivering message Frequency of add Logical reason
Total
Frequen cy Percent 194 24.0
Valid Percent 24.0
Cumulativ e Percent 24.0
196
25.0
25.0
49.0
90
11.0
11.0
60.0
204
25.0
25.0
85.0
116
15.0
15.0
100.0
100
100.0
1.9
CREATIVITY
15%
24%
BRAND AM BA SS ADOR IDEA OF DELIVERING THE MESSAGE
25% 25%
FREQUENCY OF ADD
11% LOGICAL REASON
2.9
24% people remember the advertisement because of CREATIVITY. 25% people remember the advertisement because of BRAND AMBASSADOR
43
11% people remember the advertisement because of THEIR IDEA OF DELIVERING THE MESSAGE. 25%people remember the advertisement because of FREQUENCY OF ADD.15% people remember the adverisement because of LOGICAL REASON. REASON TO LIKE THE ADVERTISEMENT.
1.Please rank CREATIVITY ......(1-5)... 1 being most preferred.
250 200 150 Series1 100 50 0 1st
2nd
3rd
4th
5th
3.1 194 respondents gave 1 st rank to creativity. 235 respondents gave 2 nd rank to creativity 186 respondents gave 3 rd rank to creativity 106 respondents gave 4 th rank to creativity 79 respondents gave 5 th rank to creativity
44
2. Please rank BRAND AMBASSADOR..... ......(1-5)...
1 being most preferred
250 200 150 Series1 100 50 0 1st
2nd
3rd
4th
5th
3.2 196 respondents gave 1 st rank to brand ambassador. 216 respondents gave 2 nd rank to brand ambassador. 93 respondents gave 3 rd rank to brand ambassador. 185 respondents gave 4 th rank to brand ambassador. 110 respondents gave 5 th rank to brand ambassador.
45
3.
Please rank IDEA OF DELIVERING THE MESSAGE......(1-5).. 1 being most
preferred
250 200 150 Series1 100 50 0 1st
2nd
3rd
4th
5th
3.3 90 respondents gave 1 st rank to idea of delivering the message. 151respondents gave 2 nd rank to idea of delivering the message 129 respondents gave 3 rd rank to idea of delivering the message 208 respondents gave 4 th rank to idea of delivering the message 222 respondents gave 5 th rank to idea of delivering the message.
46
4. Please rank FREQUENCY OF ADVERTISEMENT ......(1-5)...
1 being most
preferred
250 200 150 Series1 100 50 0 1st
2nd
3rd
4th
5th
3.4
204 respondents gave 1 st rank to frequency of add 101respondents gave 2 nd rank to frequency of add 212 respondents gave 3 rd rank to frequency of add 173 respondents gave 4 th rank to frequency of add 110 respondents gave 5 th rank to frequency of add.
47
5. Please rank LOGICAL REASON......(1-5)...
1 being most preferred
300 250 200 150
Series1
100 50 0 1st
2nd
3rd
4th
5th
3.5
116 respondents gave 1 st rank to logical reason 97 respondents gave 2 nd rank to logical reason 180 respondents gave 3 rd rank to logical reason 128 respondents gave 4 th rank to logical reason 279 respondents gave 5 th rank to logical reason.
48
6.3 REASON TO PURCHASE CHIPS .
1. Please rank BRAND NAME ......(1-7)...
1 being most preferred
1st 200 150
7th
2nd
100 50 0
Series1
6th
3rd
5th
4th
3.6 158 respondents gave 1 st rank to brand name. 200 respondents gave 2 nd ank to brand name 195 respondents gave 3 rd rank to brand name 100 respondents gave 4 th rank to brand name 85 respondents gave 5 th rank to brand name 42 respondents gave 6 th rank to brand name 20 respondents gave 7 th rank to brand name.
49
2. Please rank. PRICE .....(1-7)...
1 being most preferred
1st 200 150
7th
2nd
100 50 0
Series1
6th
3rd
5th
4th
3.7 160 respondents gave 1 st rank to price. 175 respondents gave 2 nd rank to price. 156 respondents gave 3 rd rank to price. 115 respondents gave 4 th t rank to price. 80 respondents gave 5 th rank to price. 58 respondents gave 6 th rank to price. 56 respondents gave 7 th rank to price.
50
3. Please rank TASTE
......(1-7)... 1 being most preferred
3.8
322 respondents gave 1 st rank to TASTE . 108 respondents gave 2 nd rank to TASTE 78 respondents gave 3 rd rank to TASTE 103 respondents gave 4 th rank to TASTE 22 respondents gave 5 th t rank to TASTE 101 respondents gave 6 th rank to TASTE 66 respondents gave 7 th t rank to TASTE
51
4. Please rank BRAND AMBASSADOR......(1-7)...
1 being most preferred
1st 400 300
7th
2nd
200 100 0
Series1
6th
3rd
5th
4th
3.9
66 respondents gave 1 st rank to brand ambassador. 108 respondents gave 2 nd rank to brand ambassador 78 respondents gave 3 rd rank to brand ambassador 103 respondents gave 4 th rank to brand ambassador 22 respondents gave 5 th t rank to brand ambassador 101 respondents gave 6 th rank to brand ambassador 322 respondents gave 7 th t rank to brand ambassador.
52
5. Please rank PACKAGING
......(1-7)... 1 being most preferred
1st 200 150
7th
2nd
100 50 0
Series1
6th
3rd
5th
4th
3.10 80 respondents gave 1 st rank to after PACKAGING 97 respondents gave 2 nd rank to after PACKAGING 94 respondents gave 3 rd rank to after PACKAGING 122 respondents gave 4 th rank to after PACKAGING 100 respondents gave 5 th t rank to after PACKAGING 109 respondents gave 6 th rank to after PACKAGING 198 respondents gave 7 th t rank to after PACKAGING .
53
6. Please rank EASY AVAILABILITY
......(1-7)... 1 being most preferred
1st 200 150
7th
2nd
100 50 0
Series1
6th
3rd
5th
4th
3.11
110 respondents gave 1 st rank to EASY AVAILABILITY 106 respondents gave 2 nd rank to EASY AVAILABILITY 116 respondents gave 3 rd rank to EASY AVAILABILITY 175 respondents gave 4 th rank to EASY AVAILABILITY 78 respondents gave 5 th t rank to EASY AVAILABILITY 90 respondents gave 6 th rank to EASY AVAILABILITY 31 respondents gave 7 th t rank to EASY AVAILABILITY
.
54
7. Please rank ANY OTHE FACTOR .....(1-7)...
1 being most preferred
1st 400 300
7th
2nd
200 100 0
Series1
6th
3rd
5th
4th
3.12 8 respondents gave 1 st rank to any other. 25 respondents gave 2 nd rank to any other 79 respondents gave 3 rd rank to any other 30 respondents gave 4 th rank to any other 325 respondents gave 5 th t rank to any other 296 respondents gave 6 th rank to any other 37 respondents gave 7 th t rank to any other.
55
STATISTICAL TOOLS
56
CHIPS PEOPLE BUY 1.CHI-SQUARE TEST connections
Observed N LAYS BINGO UNCLE CHIPS KURKURE CHIPS(HALDIR AMS) SOYA PUFS any other Total
Expected N
Residual
264
114.3
105.7
273
114.3
-101.3
101
114.3
-26.3
112
114.3
75.7
19
114.3
63.7
27
114.3
-84.3
4
114.3
-110.3
800 Test Statistics Connections
Chi-Square(a)
447.260
Df
6
Asymp. Sig.
.000
a 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 114.3.
57
HO-there is no significance difference between the preference of consumers regarding the CHIPS. H1-there is a significance difference between the preference of consumers regarding the CHIPS.
IF H0 <.05 OUR null Hypothesis is rejected and in this case H0 IS REJECTED. THAT means consumers preferences for CHIPS are different. 264 RESPONDENTS Prefer lays,273 prefer bingo,101 uncle chips,112 consumers prefer kurkure,19 prefer haldirams chips,27 prefer soya pufs,only 4 of them prefer any other chips.
58
ADVERTISEMENT PEOPLE REMEMBER THE MOST 2. CHI-SQUARE TEST ADVERTISEMENT
LAYS BINGO UNCLE CHIPS KURKURE CHIPS(HALD IRAMS) SOYA PUFS any other
Observed N
Expected N
Residual
214
133.3
-45.3
229
133.3
-67.3
164
133.3
30.7
124
133.3
-9.3
32
133.3
75.7
26
133.3
15.7
11
Total
Test Statistics connections Chi-Square(a)
101.905
Df
5
Asymp. Sig.
.000
a 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 133.3.
59
HO-there is no significance difference between the advertisements H1-there is a significance difference between the advertisements
IF H0 <.05 OUR null Hypothesis is rejected and in this case H0 IS REJECTED. THAT means consumers remember different different advertisements. 214 people remember the advertisement of LAYS ,229 people remember the advertisement of BINGO ,164 people remember the advertisement ofUNCLE CHIPS,124 people remember the advertisement of KURKURE,32 people remember the advertisement of HALDIRAMS CHIPS
60
REASON TO PURCHASE CHIPS.
3. FRIEDMAN TEST Ranks
Mean Rank Packaging 5.11 Brand 6.00 Taste 6.90 Easy availability 2.00 Ambassador 3.00 Price 3.99 Other 1.01
Test Statistics(a) N Chi-Square Df
800 4718.549 6
61
Asymp. Sig.
.000
a Friedman Test
H0- there is no significance difference between all the factors. H1-there is a significance difference between all the factors.
IF H0 <.05 OUR null Hypothesis is rejected and in this case H0 IS REJECTED. THAT means consumers prefer any mobile connection on the basis of certain factors.
In this case as the mean rank of taste IS 6.90 MEANS most of the consumers purchase chips because the taste. AND the mean rank for EASY AVAILABILITY is 2.00 (AFTER ANY OTHER FACTOR)THAT means CONSUMERS don’t care about EASY AVAILABILITY while purchasing CHIPS.
THE SEQUENCE OF THEIR PURCHASING PREFERENCE IS…………………
TASTE BRAND NAME PACKAGING PRICE BRAND AMBASSADOR EASY AVIALABILITY ANY OTHER
62
REASON TO REMEMBER THE ADVERTISEMENT 4. Friedman Test Ranks
Mean Rank Creativity 3.91 Brand ambassador 4.23 Idea of message 1.10 Frequency of add 4.62 Logical reason 2.43
Test Statistics(a) N
800
Chi-Square 4626.647 Df 6
63
Asymp. Sig. .003 a Friedman Test
. H0- there is no significance difference between all the factors TO REMEMBER
THE ADVERTISEMENT. H1-there is a significance difference between all the factors TO REMEMBER THE ADVERTISEMENT IF H0 <.05 OUR null Hypothesis is rejected and in this case H0 IS REJECTED.THAT means consumers remember the advertisement of any CHIPS because of some factors, In this case as
the mean rank of FREQUENCY OF THE ADVERTISEMENT IS 4.62 MEANS most of the consumers remember the advertisement because the frequency of the add, AND the mean rank for idea of delivering the message is 1.10 THAT means CONSUMERS don’t care about the idea of delivering the message.
64
5.MULTI DIMENTIONAL SCALING PERCEPTUAL MAPPING OF SNACKS BRANDS (LAYS,BINGO,UNCLE CHIPS,KURKURE,SOYAPUFS,OTHER CHIPS) Number of parameters is 12. Iteration history for the 2 dimensional solution (in squared distances)Young's Sstress formula 1 is used. Iteration
S-stress
Improvement
1 .00000 Iterations stopped because S-stress is less than .005000 Stress and squared correlation (RSQ) in distances RSQ(returns of square) values are the proportion of variance of the scaled data (disparities)in the partition (row, matrix, or entire data) which is accounted for by their corresponding distances. Stress values are Kruskal's stress formula 1. For matrix Stress = .00000 RSQ = 1.00000 Configuration derived in 2 dimensions Stimulus Coordinates Dimension 1(taste) 2(awareness) Number Name 1 2 3 4 5 6
lays soyapufs otherchi kurkure unclechi bingo
.7142 -1.9561 -1.9914 1.2621 1.2692 .7020
.0106 .0201 -.0240 -.0145 -.0056 .0134
65
Derived Stimulus Configuration
Euclidean distance model 0.03 soyapufs 0.02 bingo lays 0.01 2 n o i 0.00 s n e m i D
unclechips
-0.01
-0.02
kurkure
otherchips
-0.03 -2
-1
0
1
2
Dimension 1
66
ANALYSIS OF MULTI DIMENTIONAL SCALING: As in this case iteration value is 1 ,stress value is .000,RSQ is 1.00 That shows the validity of data,lesser the stress value ,the data is more reliable,more the RSQ ,more the validity of data
Stress = .00000
RSQ = 1.00000
This means our data is realiablefor furthure analysis
Now in the above matrix I have taken 2 dimentions that is TASTE(dimention 1) and AWARENESS (dimention 2),I have analysised all 6 brands on the basis of 2 dimentions,and I have found the following results-
1.As soya pufs lies in 1 st quarter that means consumers like the taste of soya
pufs but there is a lack of awareness about soya pufs.
2.BINGO and LAYS lies in 2 nd quarter that shows consumers like the taste of
both lays and bingo and they are aware about both the brands,as in the above matrix they are very closely located that means there is a close competiton between LAYS and BINGO.
3.KURKURE AND UNCLE CHIPS lies in 3 rd quarter, this shows that consumers
are equally aware of both the brands but they like the taste of uncle chips as compare to kurkure.and from the above matrix we can obseved that they are also
67
closely located that means kurkure is trying to reach at the same pssition which uncle chips is holding.
4.Other chips comes under the 4 th quarter that shows that consumers neither like
the taste of any other chips nor they are aware of that.
68
7.MAJOR FINDINGS 1.Out of 800 consumers,51% are males and only 49% are females.
2.MAXIMUM
3.
OUT
number of people surveyed are below 15 years
OF
800
PEOPLE
13%are
professionals,9%are
businessman,26%are serviceman,49%are students.
4..
out of 800 respondents ,97% of consumers buy chips and only
3%of them do not buy chips
5.
33% respondents prefer
LAYS,14% prefer KUKURE ,34
%BINGO,13 % Of them prefer UNCLE CHIPS ,2% Haldirams chips , 3% prefer soya pufs
6.25%people purchase CHIPS because of
TASTE,20% people
purchase CHIPS because of BRAND NAME,20% people purchase CHIPS because of PACKAGING,15% people purchase CHIPS because of PRICE ,11% people purchase CHIPS because of BRAND AMBASSADOR 8%people purchase CHIPS because of EASY
69
AVILABILITY,1%people purchase CHIPS because of ANY OTHER REASON
7..
Out of 800 consumers 98% have seen the ADVERTISEMENT and
only 2% have not seen the ADVERTISEMENT of any chips
8.
27% people remember the advertisement of LAYS,28% people
remember the advertisement of BINGO.,16% people remember the advertisement of
UNCLE
CHIPS,21%
people remember
the
advertisement of KURKURE,4% people remember the advertisement of HALDIRAMS CHIPS,3%people remember the advertisement of SOYA PUFS,1%people remember the advertisement of ANY OTHER.
9..24%
people
remember
the
advertisement
because
of
CREATIVITY. 25% people remember the advertisement because of BRAND AMBASSADOR,11% people remember the advertisement because of THEIR
IDEA
OF
DELIVERING
THE
MESSAGE.,25%people
70
remember the advertisement because of FREQUENCY OF DD.,15% people remember the adverisement because of LOGICAL REASON.
11.194 respondents gave 1 st rank to creativity.,235 respondents gave
2nd rank to creativity,186 respondents gave 3 rd rank to creativity,106 respondents gave 4 th rank to creativity, 79 respondents gave 5 th rank to creativity.
12.196 respondents gave 1 st rank to brand ambassador.,216
respondents gave 2 nd rank to brand ambassador., 93 respondents gave 3rd rank to brand ambassador.185 respondents gave 4 th rank to brand ambassador.110 respondents gave 5 th
rank to brand
ambassador.
13.90 respondents
gave 1 st rank to idea of delivering the
message.151respondents gave 2 nd rank to idea of delivering the message 129 respondents gave 3 rd rank to idea of delivering the message.208 respondents gave 4 th rank to idea of delivering the message,222 respondents gave 5 th rank to idea of delivering the message
71
14.204 respondents gave 1 st rank to frequency of dd,101respondents
gave 2nd rank to frequency of add,212 respondents gave 3 rd rank to frequency of add,173 respondents gave 4 th
rank to frequency of
add,110 respondents gave 5 th rank to frequency of add.
15.116 respondents gave 1 st rank to logical reason,97 respondents
gave 2nd rank to logical reason,180 respondents gave 3 rd rank to logical reason.128 respondents gave 4 th rank to logical reason,279 respondents gave 5 th rank to logical reason. 16.158 respondents gave 1 st rank to brand name.200 respondents
gave 2nd ank to brand name,195 respondents gave 3 rd rank to brand name,100 respondents gave 4 th rank to brand name,85 respondents gave 5th rank to brand name,42 respondents gave 6 th rank to brand name,20 respondents gave 7 th rank to brand name.
17.160 respondents gave 1 st rank to price.175 respondents gave 2 nd
rank to price.156 respondents gave 3 rd rank to price.115 respondents gave 4th
t
rank to price.80 respondents gave 5 th
rank to price.58
respondents gave 6 th rank to price.56 respondents gave 7 th rank to price
72
18.204 respondents gave 1 st rank to network.106 respondents gave
2nd rank to network.116 respondents gave 3 rd rank to network.175 respondents gave 4 th rank to network.78 respondents gave 5 th t rank to network.90 respondents gave 6 th rank to network.31 respondents gave 7th t rank to network..
19.66
respondents gave 1 st rank to brand ambassador.108
respondents gave 2 nd rank to brand ambassador 78 respondents gave 3rd rank to brand ambassador,103 respondents gave 4 th rank to brand ambassador ,22 respondents gave 5 th ambassador,101
respondents
gave
6 th
t
rank to brand
rank
to
brand
ambassador,322 respondents gave 7 th t rank to brand ambassador.
20.80 respondents gave 1 st rank to after sales service,97 respondents
gave 2nd rank to after sales service,94 respondents gave 3 rd rank to after sales service,122 respondents gave 4 th service,100 respondents gave 5 th
t
rank to after sales
rank to after sales service,109
respondents gave 6 th rank to after sales service,198 respondents gave 7th t rank to after sales service.
73
21.124 respondents gave 1 st rank to customer care service.,89
respondents gave 2 nd rank to customer care service,82 respondents gave 3rd rank to customer care service,70 respondents gave 4 th rank to customer care service 175 respondents gave 5 th
t
rank to customer care service,104
respondents gave 6 th rank to customer care service,156 respondents gave 7th t rank to customer care service
22.8 respondents gave 1 st rank to any other.25 respondents gave 2 nd
rank to any other,79 respondents gave 3 rd
rank to any other,30
respondents gave 4 th rank to any other,325 respondents gave 5 th
t
rank to any other,296 respondents gave 6 th rank to any other,37 respondents gave 7 th t rank to any other
74
8.SUGGESTIONS
On the basis of above study following suggestions can be given:
•
Perform a detail demand survey at regular interval to know about the unique needs and requirements of the customer.
•
The company should make hindrance free arrangement for its customers/retailers to make any feedback or suggestions as and when they feel.
•
The company should focus to bring some more flavours and variety of schemes rather then bring second and repeat same old one. It is always better to be first than being better.
•
The company must be aware of and keep at least the latest knowledge of its primary competitors in market and try to make a perfect anticipated efforts to meet the same
•
The company should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the whole market as a whole.
•
The company should be always in a position to receive continuous feedback and suggestions from its customers/ consumers as well as from 75
•
The market and try to solve it without any delay to establish its own good credibility..
•
The visibility of any product plays an important role in making the customer , aware about it and is vital for the growth and development of any product.
•
For their advertisement they can also introduce a brand ambassador ,because most of the consumers remember advertisement because of their brand ambassador.
•
As far as BINGO is concerned; its doing a good job but, it has to remain aware of the efforts being made by its competitors like LAYS and KURKURE as they are also investing heavily on improving their visibility.
•
A strong watch should be kept on distributors also, because in some cases they are found to be cheating the retailers and affecting the goodwill of the BRAND.
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9.CONCLUSION During the course of the project I realised that the customer willingly answered the closed end questions. From the analysis of the data collected and from the experiences I have reached the following conclusions: BINGO
is most popular amongst its users mainly because of its TASTE,
BRAND NAME,INNOVATIVENESS Thus it should focus on good taste so that it
can capture the major part of the market.But most of the consumers prefer lays as their 1st preference ,then bingo.
We come to the conclusion that visibility affects the sales of project in a very special way and in terms of the advertisements lays is lacking behind,.mostly consumers remember the advertisement because of the frequency of add , brand ambassadors and creativity .
After acquiring a new customer, there is lot of importance of its retention also. This can be done only by providing extra flavours and good taste In today’s scenario, customer is the king because he has got various choices around him. If you are not capable of providing him the desired result he will definitely switch over to the other provider. Therefore to survive in this cutthroat competition, you need to be the best. Customer is no more loyal in today’s scenario, so you need to be always on your toes.
We feel that there is cutthroat competition between lays,bingo, so to be on top of mind of the customers they need to do something outstanding every time 77
10.LIMITATIONS OF THE STUDY
•
Some of the respondents refused to fill the questionnaires.
•
The responses may vary as some people did not want to come up with real answers.
•
The people were busy in their own work so they might not have given actual responses..
•
Limitation of time.
•
The survey is conducted only in few areas
of saharanpur,dehradun
Hence the results may vary in other parts of the cities.
•
•
Small sample size.
And like any other research the limitation of personal bias of respondents limits the scope of the study.
The findings are based on the survey conducted in the month of JULY and AUGUST, the results may vary in other months.
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11.BIBLIOGRAPHY TEXT BOOKS AND JOURNALS: Beri G.C, “Marketing Research” , Third Edition Cooper Donald R. & Shindler Pamela S , “Business Research Methods
Davis Womans Jounal of Food Science and Technology, July 31 ,07 Food Quality and PreferenceVolume 19, Issue 8, Pages 719-726 By Stephen Daniells, 07-Oct-2008 Kotler Philip, “Marketing Management”,Pearson Education.
Kellogg's Desi -journal of ims vol 5 no.1,jan-june 200
Schiffman Leon G. & Kaunk Leslie Lazar, “Consumer Behaviour” Pearson Education, Eighth Edition. Tata McGraw-Hill Edition Eighth.
NEWS PAPER
Eonomic Times WEBSITES:www.itc.com www.bingo.com SEARCH ENGINE : www.google.co.in
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12.ANNEXURE
QUESTIONNAIRE
1.NAME: ……………………………….. GENDERMALE FEMALE ADDRESS …………………………… • •
OCCUPATION PROFESSIONAL BUSINESSMAN SERVICE STUDENT ANY OTHER • • • • •
2.AGE : 15-20 21-35 36-45 46-55 55 AND ABOVE •
• • • •
3.DO you eat chips? • •
Yes No
4.Which chips do you prefer most? • • •
LAYS KURKURE BINGO 80
• • • •
UNCLE CHIPS HALDIRAMS CHIPS SOYA PUFS ANY OTHER (PLEASE SPECIFY)
5.About
CHIPS what do you like the most?(PLEASE RATE THEM from 1-6) • • • • • • •
BRAND NAME TASTE EASY AVAILABILITY PACKAGING PRICE BRAND AMBASSADOR ANY OTHER (PLEASE SPECIFY)
6.Have you seen any advertisement of ANY CHIPS? • •
Yes No
7.Advertisement of which CHIPS do you remember the most? • • • • • •
LAYS KURKURE BINGO UNCLE CHIPS Other CHIPS SOYA PUFS
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8.What attracted you in the advertisement?( PLEASE RATE THEM from 1-3) • • • • •
CREATIVITY BRAND AMBASSADOR IDEA OF DELIVERING THE MESSAGE FREQUENCY OF ADD LOGICAL REASON
9.Have you decided to purchase any connection after watching the advertisement? • •
Yes No
10.PLEASE GIVE RATING TO EACH BRAND IN 2 COLOUMS. BRAND NAME
TASTE(1-5)
AWARENESS(1-5)
LAYS BINGO KURKURE UNCLE CHIPS ANY OTHER SOYA PUFS 1-HIGLY DISSATISFIED 5-HIGHLY SATISFIED 82
