KURKURE

A MARKET LAUNCH PLAN

Group 1, Section A
INSTITUTE OF MANAGEMENT TECHNOLOGY | DUBAI

A Market Launch Plan

for

Kurkure
By

Group 9, Section A
Aditya Jishnu
Kanika Mittal
Mayank Sinha
Rishabh Madhok
Vignesh G.

16DCP004
16DCP027
16DCP033
16DCP045
16DCP061

Formatted by:
Group 1, Section A
Ankit Goyal
16DCP008
Anurag Sharma 16DCP010
Kanika Mittal
16DCP027
Pare Mahadev J 16DCP037
Parul Verma
16DCP038
Vignesh G.
16DCP061

Submitted to
Dr. Gita Bajaj

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Acknowledgement
We would like to express our sincerest gratitude to all the people who have contributed towards the
successful completion of our project. We would like to extend our heartfelt thanks to the Dean
Academics Dr. Harvinder Singh, for nurturing a congenial yet completive environment in the
department, which motivates all the students to pursue higher goals.
We want to express our special gratitude to our Guide Dr. Gita Bajaj, for her constant support,
guidance, encouragement, and much needed motivation. Her sincerity, thoroughness and
perseverance has been a constant source of inspiration for us.
Last but not the least; we would like to extend our thankful to Aditya Jishnu, Mayank Sinha, and
RIshabh Madhok, besides Kanika Mittal and Vignesh G., to borrow their Marketing Strategy and
Organisation Report for review.

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Executive Summary
The purpose of this study is to show Kurkure, which has the potential to become a leading brand in
savoury snack segment in the UAE market. The study carefully analyses the market share of the puff corn
segment, the potential growth of the puff corn segment in the near future. The various types of
segmentations show the brand which are their most favourable segment to target. The strength and
weakness of the brand in UAE market has been taken into consideration and recommendations we made
how to position the product. The competitive scenario shows how the rivalry target their customers
which helps Kukure to understand the whole market scenario and shows how Kurkure can enter the
market to attract the target customers.

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Table of Contents
Acknowledgement.................................................................................................................................... 2
Executive Summary .................................................................................................................................. 3
Table of Contents ..................................................................................................................................... 4
List of Figures............................................................................................................................................ 5
Introduction.............................................................................................................................................. 6
Prospects in UAE....................................................................................................................................... 6
Value proposition and refinement of offerings......................................................................................... 6
Market Needs and Trends ........................................................................................................................ 7
Market Potential and Growth................................................................................................................... 7
PESTEL Analysis ........................................................................................................................................ 7
SWOT Analysis .......................................................................................................................................... 8
Savoury Snack Market in UAE ................................................................................................................... 8
Segmentation ........................................................................................................................................... 9
Competitive scenario .............................................................................................................................. 10
Perceptual Map ...................................................................................................................................... 10
Positioning.............................................................................................................................................. 11
Viability of the venture - Value for Money ............................................................................................. 12
Roll Out Strategy .................................................................................................................................... 13
Future Potential...................................................................................................................................... 13
References .............................................................................................................................................. 14

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List of Figures
FIGURE 1: ABOUT KURKURE.............................................................................................................................. 6
FIGURE 2: SWOT ANALYSIS OF UAE MARKET FOR KURKURE ....................................................................................... 8
FIGURE 3: KEY STATISTICS ABOUT UAE SAVOURY SNACKS MARKET .............................................................................. 8
FIGURE 4: SEGMENTATION OF UAE MARKET ......................................................................................................... 9
FIGURE 5: COMPETITION IN SAVOURY SNACKS MARKET ......................................................................................... 10
FIGURE 6: PERCEPTUAL MAP BASED ON QUALITY VS LOCAL APPEAL OF FLAVOUR ......................................................... 10
FIGURE 7: PERCEPTUAL MAP BASED ON QUALITY VS PRICES .................................................................................... 10

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Introduction
This namkeen snack launched in 1999 was developed entirely in India. It is now a brand symbolizes with
love and light- hearted fun due to such intended advertisement and association of Bollywood stars. A
complete vegetarian snack which from being a taste
changing snack has now become an integral part of Indias
teatime menu. The brand re-invented itself to sustain its
relevance to Indian culture and ethos. It also brought
happiness to many families by introducing face on pack
initiative for families sharing their kurkure ideas and in the
same time increased its market share and revenue.
The brand is sold in India under puff corn segment of which
traditional snacks is a market of 7000crore of the segment
where Kurkure has a market share of 14.3% compared to
lays which is the market leader having 15% of the market
share.

FIGURE 1: A BOUT KURKURE

Prospects in UAE
The UAE, as we know is a country with a huge population of expats, especially from India. And we Indians
love to have snacks. The savoury snacks in UAE are expected to be one of the fastest growing sector in
2015 2020 driven by the huge population of expatriate consisting of young adult and pre-mid lifers. And
given that Indian savoury snacks are the most common variant in traditional snacks category, there is a
huge market for the brand to be explored. The sweet and savoury snack industry increased by 15% in
2015.
This is what we think could be the target market segment which an Indian brand like kurkure could catch
onto and develop its own market share. The huge untouched population from the subcontinent could be
a big potential in this category.

Value proposition and refinement of offerings

The snack can be launched in the savoury snacks segment of the puff corn sector which increased by 15%
in 2015 and is expected to be among the fastest growing sector in 2015-2020. It can serve as an all-time
snack as well as a tea time snacks.
Given that the UAE market is mostly non-veg the company could launch chicken flavour or other non-veg
flavour snacks, the market of which is yet to be explored. The market of Kurkure in the subcontinent will
help people familiarize with the taste and quality it serves them there and thus help them initially in
capturing the market.
Different age groups can be targeted differently like adults can be targeted by identifying it as a tea time
snack while young and kids can be targeted by projecting it as an all-time snack or something eaten in
between the meals.
To company needs to innovate by studying the market for other nationals present the UAE. It can target
Pilipino by launching sweet corn flavour which they love. It can target African nationals with similar
innovations.
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Market Needs and Trends

With changes in lifestyle, the savory snack market is increasingly becoming an important alternative to
traditional snacks. The fast paced lifestyle prevents shopping or cooking time-consuming snacks, pushing
consumers to packaged snacks which work as an efficient substitute. To cater to different styles and
tastes this market runs on taste differentiation with companies releasing multiple variants to satisfy
multiple segments. Hence competition is tough within this segments between companies as well as
between variants of a single company.

Market Potential and Growth

The savory snack market is growing at a considerable rate of 12% CAGR in UAE. With changing consumer
habit atleast one out of five consumers use savory snack as a substitute instead of a full meal (Report by
Information Resources Inc.). This is supported by the fact that traditionally snacking is very much a part of
the local culture. Despite snacks companies such as Mondelez and PepsiCo leading the market other
players like Yili, Dean Foods and Lactalis are giving them a real competition.

PESTEL Analysis
Political

The political situation is stable in the UAE. The political relationship between UAE and India are
congenial and Kurkure would benefit from such a political situation.

Economic

The stable economic growth of UAE with GDP growing at 3.9%. Per capita income is high.
Kurkure can quote same prices as its counterparts.

Socio-Cultural

UAE is a multi-cultural hub with 70 percent expats.

Even though UAE is a tourism country, Locals value their tradition and follow the basic rules of
Islam which the company should value or they might boycott.
Women are seen as equal and should pay respect in their advertisements as well.

Technological

UAE is one of the most technologically advanced country.

High internet usage which makes it easy to attract customers through the internet.
Two world class ports which help us well in logistics.

Environment

UAE is extremely concerned about its environment.

Wastage should be disposed of at least 30m away from the manufacturing plant due to the risk
of contamination.

Legal

No compromises and corruption will be allowed.

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SWOT Analysis

FIGURE 2: SWOT ANALYSIS OF UAE M ARKET FOR KURKURE

Savoury Snack Market in UAE

The total savoury snack market in UAE is 747 million AED in value. It is bifurcated into various segments
such as nuts & seeds, processed snacks, potato chips, etc. Out of that Processed snacks is 19% of the total
market. And the corn chips variety is 71.2 Million AED in the value of the total market. This is the total
value of the market Kurkure would be targeting.

FIGURE 3: KEY S TATISTICS ABOUT UAE S AVOURY SNACKS M ARKET

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Segmentation
The most effective segmentation of the UAE market is demographic segmentation.

Race and Culture:

The below chart shows the distribution of population on the basis of nationality. With meager 10-15%
local population, the remaining population comprising of immigrants from across the world long for the
taste which reminds them of home. Also, within each nationality, there are varied cultures which have
different needs and wants. Kurkure will have a competitive edge in this regard due to the availability of
around 20 flavours currently in markets of India.

Age:
According to various reports, approximately 20% of the population of UAE is less than 14 years of age
which forms a considerable portion and target market for kurkure. Almost 95% of the population is less
than 54 years of age which makes UAE attractive destination for snacks.

Psychographic Segmentation:
With changes in lifestyle, the savoury snack market is increasingly becoming an important alternative to
traditional snacks. Large immigrant working population translates into increased demand for snacks and
fast food. The fast paced lifestyle prevents shopping or cooking time, pushing consumers to packaged
snacks which work as an efficient substitute. To cater to different styles and tastes this market runs on
taste differentiation with companies releasing multiple variants to satisfy multiple segments.

FIGURE 4: SEGMENTATION OF UAE M ARKET

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Competitive scenario
UAE is served by many players in the corn chips segment, unlike India. Here foreign players like UTZ,
Pirate Booty and LMN play a major role in the Corn chips segment. They are expensive and high in quality
and provide foreign flavors for this market. On the other end of the spectrum, we have local players like
Pofaki, Takis, etc. These players are low in cost and quality but they play on the fact that they understand
the local flavors, especially meat flavors and thus they are high in demand too.
A large expatriate population from multi-cultural and various socio-economic backgrounds make the UAE
Savoury Snacks market highly dynamic and
rapidly evolving. The Savoury Snacks market
is forecast to grow at a robust rate wherein
the introduction of premium and indulgent
Savoury Snacks is the key motivating factor
for the Emirati population.
This overview of the consumer and market
dynamics of the UAE Savoury Snacks sector
allows new entrants and established
companies to gain rapid and comprehensive
insight into the current state of the market.

FIGURE 5: C OMPETITION IN SAVOURY SNACKS MARKET

Perceptual Map

FIGURE 6: PERCEPTUAL MAP BASED ON QUALITY VS

FIGURE 7: PERCEPTUAL MAP BASED ON QUALITY VS

LOCAL APPEAL OF FLAVOUR

PRICES

Key Findings:

UAE witnesses a high immigrant population from various countries and this makes the demand
for Savoury Snacks products highly dynamic.
Potato Chips is the largest category by volume in the UAE Savoury Snacks market.
PepsiCo is a dominant player in the market. Lays, Doritos, Cheetos are already extremely popular
and widely distributed. Since kurkure falls under the PepsiCo umbrella as well, it seems primed
to enter the market.

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Positioning
Competitive Frame of Reference
To analyze the potential positioning or perception of Kurkure in the minds of the consumer in UAE, we
have to first understand what frame of reference we are using in terms of competitors and how the
brand has positioned itself differently with respect to its competitors.

Category Membership
Kurkure belongs to the corn-based snacks segment of the savory snacks market. In India, Kurkure had
no major competition with respect to the puff corn segment. Its market share in India in that segment
was barely dented by foreign players such as Cheetos and ACT 2 as well as local players like natkhat,
takatak, and other traditional Indian snacks.
In UAE the competitive scene is entirely different. Looking at the high amount of expats influx in the
market a lot of foreign brands are present here. Cheetos is a major player here. Other big foreign players
are UTZ, pirate booty, KLN, Lehi Valley. Apart from that a lot of local players are present in the market.
These local players in addition to providing traditional vegetarian local flavors also provide meat flavors
keeping in mind taste affixation of local citizens.

How does it position itself currently in India and what positioning strategy it can use in
UAE?
There are three ways a brand can position itself in the minds of the consumer -

Announcing Category benefits

In Category benefits it currently differentiates itself on two fronts in India. First is the superior quality it
provides considering a lot of players in Puffcorn are local and poor in quality. The ingredients used are of
high quality and the processes involved keep a tight check on safety and standards. Second is its
affiliation to local flavors of different states with varieties such as hyderabadi hungama, rajashthani style,
teekha meetha khatta, etc.
In UAE, considering the fact that the only high-quality corn puffs available are from foreign players and
they do not cater to local taste, this category benefit can be exploited by Kurkure. Kurkure caters to the
local taste requirement of the market considering similar cultural palate and they provide that in high
quality as opposed to other local players. Secondly, it has the benefit of local Indian flavors from different
states which is not available in any Puffcorn form in the UAE market.

Comparing to exemplars
Kurkure rarely uses this form of Category positioning. It is the market leader in India and it does not
compare itself to other players in the market.
The fact that in UAE kurkure would be a new name, it has to emphasize on how it is differentiated from
other players available in the market. This form of positioning is very critical to generate a positive
perception in the minds of the consumers. As compared to the high-quality foreign products, they
provide the same quality in locally acceptable flavors. And it should also compare the high-quality benefit
compared to local players who play on the same palate category.

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Relying on product descriptor

Kurkure has always relied on product descriptors to position itself in the minds of the consumers. With
the tagline Tedha hai par mera hai, they exemplified the unique form factor of kurkure that would help
the consumers differentiate between kurkure and other puff corn available in the market.
Product descriptors wont help kurkure in the UAE market. The twisted form factor is consistent with
other famous local and foreign players.

Points of Parity - POP

A point of parity is the basic standards or criteria that a product/brand has to meet to compete in a
market. It caters to the core needs of a target market.

Salted snack
Salt is a core ingredient in comfort foods and people tend to crave and look for salty snacks when binge
eating. While some people have a sweet tooth, many people enjoy salted snacks as a means of destressing or just because they enjoy the taste.

Anytime snack
Like the majority of corn-based snacks available in the market, Kurkure can be consumed just about
anywhere and anytime. It is quite popular as a tea time snack, as a mid-day snack between meals or even
as an accompaniment with other meals. It is readily consumed and does not require any sort of
preparation.

Points of Difference - POD

A point of difference is the aspect/offering of a product or brand that is unique amongst other
competitors in the market.

Local Indian Flavors

Kurkure offers traditional Indian flavors in a unique offering that combines the traditional namkeen in a
ready to eat corn based snack.

Affordability with quality

Due to factors discussed later, Kurkure is able to offer a high quality ready to eat snack at relatively more
affordable rates. During our study, we observed that in the UAE market, quality products generally
accompanied by high price-tags.

Viability of the venture - Value for Money

Manufacturing plant in Saudi Arabia
PepsiCo has opened a new state of the art manufacturing plant in Saudi Arabia, spread across 55,000
square meters. This should be able to at least cater to the initial demand from the UAE, thus significantly
reducing the logistics and transport costs that other foreign players have to bear while exporting their
products.

Prevalent Distribution channels of PepsiCo

PepsiCo already has a well-established distribution network. Thus kurkure can establish its presence at a
significantly lower cost.
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Similar Local Taste Palate

The entire Indian subcontinent and middle east(both of which constitute the majority of population) tend
to appreciate spices and local flavors that kurkure has to offer, thus adding to its appeal.

Popular Brand
It is a popular brand that can move into other segments later. Using its brand presence, it can easy
capture larger market shares by moving into other segments such as namkeens, nuts etc.

Roll Out Strategy

PRODUCT
Start off with a basic offering
We intend on introducing the basic flavors such as the famous Masala Flavor, Rajasthani Chutney &
Hyderabadi Hungama. Flavor extension shall be postponed until the brand is more established. We shall
initially start off with smaller pack sizes for people to try out the product.

PRICE
We shall be priced below the major competitors during the introduction phase to penetrate the market
and capture market share.

PLACE
We shall be targeting Hypermarkets such as Carrefour and Geant. We shall use Pepsicos prevalent
Distribution Channels to Place the products.

PROMOTION
We would like to emphasize on brand awareness rather than product awareness to establish a long-term
connect with the consumers. We shall use Financial Strength for Promotions.

Future Potential

Once the brand Kurkure is established we can venture into other savory snacks segment using
its other varieties
Venture into Namkeen and Roasted Nuts
It can further venture into Meat flavors to appeal to more diverse demographics

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References

Tandon, S. (2016, May 09). Pepsi is launching a gastronomic assault to capture more of Indias
traditional snacks market. Retrieved on 2016, October 15 from http://qz.com/676909/pepsi-islaunching-a-gastronomic-assault-to-capture-more-of-indias-traditional-snacks-market/
Consumer and Market Insights: Savory Snacks in the UAE. (2016, June). Retrieved on 2016,
October 16 from http://www.marketresearchstore.com/report/consumer-and-market-insightssavory-snacks-in-the-72883
PepsiCo India - Kurkure. Retrieved 2016, October 18, from
http://www.pepsicoindia.co.in/brands/kurkure.html#code

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