A PROJECT REPORT ON

CUSTOMER SATISFACTION
TOWARDS BINGO

SESSION: 2009-2010

Submitted To: Submitted By:

MR VISHAL SHARMA DURGESH KR.

GIRI
FACULTY OF MANAGEMENT BBA VI SEM
DEPARTMENT ROLL NO.908017

Durgesh Kumar Giri, BBA IInd Year

 CERTIFICATE

Durgesh Kumar Giri, BBA IInd Year

 PREFACE

According to a study by McKinsey & Co, the Indian food market will grow two fold by 2025
with the rapidly growing Indian economy and improving lifestyles of Indians contributing in a
big way to this growth. Quoting the study by McKinsey & Co, a report by the US Department of
Agriculture stated "The market size for the food consumption category in India is expected to
grow from US$ 155 billion in 2005 to US$ 344 billion in 2025 at a compound annual growth rate
of 4.1 per cent."

The Indian snacks market is worth around US$ 3 billion, with the organized segment taking half
the market share, and has an annual growth rate of 15-20 per cent. The unorganized snacks
market is worth US$ 1.56 billion, with a growth rate of 7-8 per cent per year. There are
approximately 1,000 types of snacks and another 300 types of savouries being sold in the Indian
market today. Indians in the western regions eat the maximum amount of snacks, followed by the
people in northern region.

In this project I have discussed about customer satisfaction towards Bingo.

Durgesh Kumar Giri, BBA IInd Year

 ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep gratitude to all those who,
directly or indirectly made this project possible.
I have got considerable help and support in making this project report a reality
from many people.
I would like to thank Mr. Vishal Sharma whose endeavor for perfection, under
fatigable zeal, innovation and dynamism contributed in a big way in completing
this project. This work is the reflection of his thought, ideas, concept and above all
his modest effort.

Durgesh Kumar Giri

BBA – IV Sem

Durgesh Kumar Giri, BBA IInd Year

 • INTRODUCTION.
 Key Players of the industry
 Two wheelers market size and growth
 Demand drivers
Market Characteristic
Segmental Market Share
 Supply
• TRENDS IN TWO-WHEELERS INDUSTRY.
• FACTOR WHICH ARE CHANGING TRENDS IN BAREILLY.
• OBJECTIVES
• RESEARCH METHADOLGY
 Questionnaire Method
 Data Collection
• SAMPLE SIZE PLANNING.
• QUESTIONAAIRE.
• CONCLUSION
• FINDINGS
• LIMITATIONS

Durgesh Kumar Giri, BBA IInd Year

 • BIBLIOGRAPHY

Durgesh Kumar Giri, BBA IInd Year

 OBJECTIVES OF THE STUDY

1. To study the snacks industry as a part of food processing industry.

2. To study the company profile of ITC Ltd the makers of BINGO.
3. To study the trends in snacks industry.
4. To analyse and interpret the results of sample collected.
5. To determine the future course of action by ITC.
6. To study the customer satisfaction towards Bingo.

Durgesh Kumar Giri, BBA IInd Year

 INTRODUCTION

Durgesh Kumar Giri, BBA IInd Year

The Fast Moving Consumer Goods (FMCG) sector is the fourth largest sector in
the economy with a total market size in excess of Rs 60,000 crore. This industry
essentially comprises Consumer Non Durable (CND) products and caters to the
everyday need of the population.
Product Characteristics
Products belonging to the FMCG segment generally have the following
characteristics:
• They are used at least once a month
• They are used directly by the end-consumer
• They are non-durable
• They are sold in packaged form
• They are branded
Industry Segments
The main segments of the FMCG sector are:
• Personal Care: oral care; hair care; skin care; personal wash (soaps);
cosmetics and toiletries; deodorants; perfumes; paper products (tissues,
diapers, sanitary); shoe care.
Major companies active in this segment include Hindustan Lever; Godrej Soaps,
Colgate-Palmolive, Marico, Dabur and Procter & Gamble.
• Household Care: fabric wash (laundry soaps and synthetic detergents);
household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air
fresheners, insecticides and mosquito repellants, metal polish and furniture
polish).
Major companies active in this segment include Hindustan Lever, Nirma and
Reckitt & Colman.

Durgesh Kumar Giri, BBA IInd Year

 • Branded and Packaged Food and Beverages: health beverages; soft drinks;
staples/cereals; bakery products (biscuits, bread, cakes); snack food;
chocolates; ice cream; tea; coffee; processed fruits, vegetables and meat;
dairy products; bottled water; branded flour; branded rice; branded sugar;
juices etc.
Major companies active in this segment include Hindustan Lever, Nestle,
Cadbury and Dabur.
• Spirits and Tobacc Major companies active in this segment include ITC,
Godfrey Philips, UB and Shaw Wallace.

An exact product-wise sales break up for each of the items is difficult.

1) The Indian FMCG sector is the fourth largest sector in the economy with a
total market size in excess of US$ 13.1 billion.

2) It has a strong MNC presence and is characterised by a well-established

distribution network, intense competition between the organised and
unorganised segments and low operational cost.

3) Availability of key raw materials, cheaper labour costs and presence across
the entire value chain gives India a competitive advantage.

4) The FMCG market is set to treble from US$ 11.6 billion in 2003to US$ 33.4
billion in 2015. Penetration level as well as per capita consumption in most
product categories like jams, toothpaste, skincare, hair wash etc in India is
low indicating the untapped market

Durgesh Kumar Giri, BBA IInd Year

 potential.

5) Burgeoning Indian population, particularly the middle class and the rural
segments, presents an opportunity to makers of branded products to convert
consumers to branded products.

6) Growth is also likely to come from consumer 'upgrading' in the matured

product categories. With 200 million people expected to shift to processed
and packaged food by 2010.

7) India needs around US$ 28 billion of investment in the food-processing

industry.

8) Major Global Players – HUL, Procter and Gamble, Colgate – Palmolive

9) Major Players in India – HUL, ITC, Procter & Gamble, Dabur India.

Durgesh Kumar Giri, BBA IInd Year

OVERVIEW

According to a study by McKinsey & Co, the Indian food market will grow two
fold by 2025 with the rapidly growing Indian economy and improving lifestyles of
Indians contributing in a big way to this growth. Quoting the study by McKinsey &
Co, a report by the US Department of Agriculture stated "The market size for the
food consumption category in India is expected to grow from US$ 155 billion in
2005 to US$ 344 billion in 2025 at a compound annual growth rate of 4.1 per
cent."

The Indian snacks market is worth around US$ 3 billion, with the organized
segment taking half the market share, and has an annual growth rate of 15-20 per
cent. The unorganized snacks market is worth US$ 1.56 billion, with a growth rate
of 7-8 per cent per year. There are approximately 1,000 types of snacks and
another 300 types of savouries being sold in the Indian market today. Indians in the
western regions eat the maximum amount of snacks, followed by the people in
northern region.
"Consumers are willing to pay a premium for both value-added private and
branded products, creating immense opportunities for manufacturers and retailers,'
the report stated.
Potato chips and potato-based items are the most popular products with more than
85 per cent share of the salty snack market, the report said. In the organized potato
chips market, some of the leading players are Pepsi, Haldiram's, ITC, Britannia,
Bikano, Balaji, Marico, Dabur etc.

Durgesh Kumar Giri, BBA IInd Year

 INTRODUCTION

Durgesh Kumar Giri, BBA IInd Year

 GENERAL INTRODUCTION

Basically we intend to find out the most popular flavor of BINGO in the market
from our sample. Snacks as such are a very minor part of the food processing
industry because snacks sector is largely unorganized. Here we will also look into
the market trends in snacks over the years. 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. We aim to
analyze the success, marketability and future growth prospects of BINGO. We also
intend to study the spending habits and motivation of consumers for buying snacks.

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.

Durgesh Kumar Giri, BBA IInd Year

 7.

INDUSTRY PROFILE OF INDIAN FOOD PROCESSING

INDUSTRY

A) 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

Durgesh Kumar Giri, BBA IInd Year

 • 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
• 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

Durgesh Kumar Giri, BBA IInd Year

B) INDIAN SNACKS INDUSTRY: An Overview
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

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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 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.

Durgesh Kumar Giri, BBA IInd Year

C) SWOT Analysis of Snacks Industry
Strengths
• Abundant availability of raw material
• Vast network of manufacturing facilities all over the country
• 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.

Durgesh Kumar Giri, BBA IInd Year

 PROFILE OF THE
ORGANIZATION:

ITC Ltd.

Durgesh Kumar Giri, BBA IInd Year

 PROFILE OF THE ORGANISATION

ITC LIMITED
A) Establishment:
Incorporated on 24 August 1910 as the Imperial Tobacco Company of India
Limited, the company's name was changed to ITC Limited in 1974. Rated among
the 'World's Best Big Companies' by Forbes magazine, ITC ranks third on all
major profit parameters among India's private sector corporations. ITC employs
over 20,000 people at more than 60 locations across India. It has a turnover of $3
billion.

B) Growth and Diversification:

ITC is one of India's foremost private sector companies with a market
capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75 billion.
ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the
World's Most Reputable Companies by Forbes magazine, among India's Most
Respected Companies by Business World and among India's Most Valuable
Companies by Business Today. ITC also ranks among India's top 10 `Most
Valuable (Company) Brands', in a study conducted by Brand Finance and
published by the Economic Times.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Personal Care, Stationery, Safety. Matches and other FMCG products.
While ITC is an outstanding market leader in its traditional businesses of Cigarettes,
Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even

Durgesh Kumar Giri, BBA IInd Year

in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel and
Stationery.
As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a
commitment beyond the market". In his own words: "ITC believes that its aspiration to
create enduring value for the nation provides the motive force to sustain growing
shareholder value. ITC practises this philosophy by not only driving each of its
businesses towards international competitiveness but by also consciously contributing to
enhancing the competitiveness of the larger value chain of which it is a part."

ITC's diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched distribution
reach, superior brand-building capabilities, effective supply chain management and
acknowledged service skills in hoteliering. Over time, the strategic forays into new
businesses are expected to garner a significant share of these emerging high-growth
markets in India.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC

is one of the country's biggest foreign exchange earners (US $ 2.8 billion in the last
decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture
significantly enhance its competitiveness by empowering Indian farmers through
the power of the Internet. This transformational strategy, which has already
become the subject matter of a case study at Harvard Business School, is expected
to progressively create for ITC a huge rural distribution infrastructure, significantly
enhancing the Company's marketing reach. ITC's wholly owned Information
Technology subsidiary, ITC Infotech India Limited, is aggressively pursuing
emerging opportunities in providing end-to-end IT solutions, including e-enabled
services and business process outsourcing.

Durgesh Kumar Giri, BBA IInd Year

ITC's production facilities and hotels have won numerous national and
international awards for quality, productivity, safety and environment management
systems. ITC was the first company in India to voluntarily seek a corporate
governance rating.

ITC employs over 21,000 people at more than 60 locations across India. The
Company continuously endeavors to enhance its wealth generating capabilities in a
globalizing environment to consistently reward more than 3, 88,000 shareholders,
fulfill the aspirations of its stakeholders and meet societal expectations. This over-
arching vision of the company is expressively captured in its corporate positioning
statement: "Enduring Value. For the nation, For the Shareholder

Durgesh Kumar Giri, BBA IInd Year

 RESEARCH
METHODOLOGY

Durgesh Kumar Giri, BBA IInd Year

STATEMENT OF RESEARCH PROBLEM

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, our aim was to find out the most popular flavor of Bingo among all the
offerings.
We began our analysis by dividing people into those who like to eat snacks and
those who don’t. We based our study on the survey of people who like to eat
snacks. This survey was conducted in Delhi. To collect the data we designed a
questionnaire.
3.2 STATEMENT OF RESEARCH OBJECTIVES

The main objectives of our research were as follows:

 To find out what percentage of population likes to eat snacks.
 To find out which flavor of Bingo is most preferred.
 To analyze the reason for the popularity of the most preferred snack.
 To know the satisfaction level of people who eat Bingo.
 To find out how much people spend on snacks weekly.
 To find out the preferences of people for different brands.

Durgesh Kumar Giri, BBA IInd Year

RESEARCH DESIGN & METHODOLOGY

Research design is the basic framework which provides guidelines for the rest of
research process. It specifies the methods for data collection and data analysis .In
this research project we have used the survey method of data collection, to be more
specific questionnaire method. We conducted a survey in Delhi. Out of the
universe of 500 our sample size is 50. Respondents in the sample size were asked
to fill the questionnaires to gather the data.

Durgesh Kumar Giri, BBA IInd Year

 DATA ANALYSIS

ANALYSIS OF DATA

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.

Durgesh Kumar Giri, BBA IInd Year

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.

Durgesh Kumar Giri, BBA IInd Year

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.

 Our second objective is concerned with finding out which flavor of Bingo is most preferred.

Durgesh Kumar Giri, BBA IInd Year

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.

Durgesh Kumar Giri, BBA IInd Year

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.

Durgesh Kumar Giri, BBA IInd Year

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)

 Thirdobjective was to find out how much people are satisfied with Bingo. Following pie chart shows
the satisfaction level of people

Durgesh Kumar Giri, BBA IInd Year

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.

 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.

Durgesh Kumar Giri, BBA IInd Year

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.

Durgesh Kumar Giri, BBA IInd Year

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.

Durgesh Kumar Giri, BBA IInd Year

Ques 10:-Compare to other snacks (such as Kurkure, Lays, Haldiram etc) that are available, would
you say that Bingo is?

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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.

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Ques 13:-Before switching on to BINGO, which snack did you prefer?

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.

Durgesh Kumar Giri, BBA IInd Year

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.

Durgesh Kumar Giri, BBA IInd Year

 FINDINGS

Durgesh Kumar Giri, BBA IInd Year

 FINDING

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.

CONCLUSIONS

Durgesh Kumar Giri, BBA IInd Year

 ITC is a conglomerate with diversified product lines. Approximately 100 years
old company has a different impact on its consumers. This company enjoys its
brand image in the market while introducing new products. ITC has extended its
production units across the country.

ITC pays equal attention to all its products. Keep a sincere check on
Bingo. This is the reason why Bingo provides good quality products at affordable
prices. Though this company has many rivals in the market, yet it has good market
share.

It also gives tough competition to its rival companies. Its promotion techniques
have started taking participation in the race of advertisements. Proper heed is given
to all the factors of marketing mix.

RECOMMENDATION

Durgesh Kumar Giri, BBA IInd Year

 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. ITC should take more care for Bingo. ITC should give
more advertisement in TV and New paper. Company should give some free offers to
customers.

Durgesh Kumar Giri, BBA IInd Year

 APPENDIX

Questionnaire on
Durgesh Kumar Giri, BBA IInd Year
Name: _______________________ Age : ___________ (DD/MM/YY)

Contact No. _________________ Email : ______________________

Q1. 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

Q2. How often do you have BINGO?

Once a week or more often Everyday
2 to 3 times a month 2 or more per day
Q3. How much do you spend weekly on snacks?
Below Rs. 50 Rs. 50-100 More than Rs. 100
Q4. Overall, how much satisfied are you with BINGO?
Very satisfied Somewhat satisfied Unsatisfied
Q5. What do you like about BINGO?
Taste Variety Quality
Price Quantity Packaging
Q6. Is the price of bingo is satisfactory?
Yes No
If No (Please specify price, according to you) ___________________________
Q7. Compared to other snacks (such as Kurkure, Lays, Haldiram etc.) that are available, would you say
that BINGO is?
Much better Somewhat Better

Durgesh Kumar Giri, BBA IInd Year

 About the same Somewhat Worse
Much Worse

Q8. 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

Q9. How did you first discover BINGO?

Advertising- T.V, Newspaper, Radio Friends/ Family
Saw it in store Other
Q10. Before switching on to BINGO, which snack did you prefer?
Lays Kurkure
Uncle chips Haldiram Namkeens
Q11. What do you considered while buying your brand?
Flavour Product quality
Availability Brand ambassador
Other (please specify) _____________________________________________

BIBLOGRAPHY

Durgesh Kumar Giri, BBA IInd Year

SME rating agency of India ltd.

www.allbusiness.com

http://www.financialexpress.com

www.itcportal.com

www.researchmarketer.com

Durgesh Kumar Giri, BBA IInd Year

Overview of Firto-Lay (PepsiCo)
Frito-Lay North America (FLNA) is a division of PepsiCo, Inc. which manufactures markets
and sells a variety of corn chips, potato chips and other snack foods.
FLNA is headquartered in Plano, Texas, a suburb of Dallas. The company's current form is the
result of a 1965 merger of Frito-Lay, Inc. and the Pepsi-Cola Company, which resulted in the
formation of PepsiCo, Inc. Products sold under the Frito-Lay name are now recorded by two
PepsiCo divisions: Frito-Lay North America (North American sales) and PepsiCo International
(international sales)
On June 8, 1965, the merger of Frito-Lay and Pepsi-Cola Company.
Today, PepsiCo is organized into four divisions:

Durgesh Kumar Giri, BBA IInd Year

 1) Frito-Lay North America.
2) PepsiCo Beverages North America,
3) PepsiCo International and
4) Quaker Foods North America.
Although products sold in the United States under the Frito-Lay brand name are also
sold internationally, international sales are reported by the PepsiCo International
division.

Overview of Bingo (ITC)

The launch of Bingo represents ITC Foods’ fifth major line of business after the highly successful staples, biscuits,
ready-to-eat and confectionery products. Introduced in the market in March 2007.

MARKETING WARFARE
B/W
FIRTOLAY (PEPSICO) AND BINGO (ITC)

Durgesh Kumar Giri, BBA IInd Year

Currently, the size of the snack food market is estimated to be Rs 4,500-5,000 crore of which
branded players account for Rs 2,000 crore. The snack food market is growing at 30 per cent
annually and foods and beverage giant Pepsico’s Frito Lays is the dominant market leader with a
market share in excess of 80 per cent.

Summary of PepsiCo First Quarter 2007 Results

% Growth Rate
Volume (Servings) 4
Revenue 9
Division Operating Profit 9
Net Income 16
Earnings Per Share 17

Bingo was launched in India on Mar 14, 2007 during the world cup time. Main aim of ITC Bingo
advertisements was to create buzz among customers. Most of the advertisements of Bingo were
considered vague and stupid but I feel that was the best form of communication any marketing
company has ever done. Within a month of launch of initial advertisements, 70% of the viewers
could recall the brand and that was their main aim. Brand recall along with 16 flavors in three
SKUs helped ITC to capture 16% of market share in just 18 months.
The initial offerings from Bingo include an array of products in both Potato Chips & Finger
Snacks segment. The Potato Chips offerings comprise of four innovative variants inspired by the
snacking habits of different parts of the country as well as Masala, 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.

Durgesh Kumar Giri, BBA IInd Year

FIRTOLAY (PEPSICO) AND BINGO (ITC)

The segmentation was mainly done on basis of the age of the people. The primary target for
Bingo is 18-30 year old people, who are willing to try out new flavours more easily than the
small kids. Bingo is positioned as a youthful and innovative snack.
In a survey done by ITC, it has been found that 70% of respondents liked Indian flavors like

bhel, golgappas etc. Initial pricing of ITC bingo is directly frontal attack on Frito lays
with pricing of Rs 5, 10 and 20.
Now Frito Lays has launched small packs of Rs 3. Let us see whether ITC can leverage upon its
huge distribution network covering panwaalas to small kiryana shops with a similar small pack
of Rs 3.
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. Within six months of launch Bingo was available in
more than 2, 50, 000 retailers across the country. ITC made a strategic alliance with Future group
according to which all retail stores of Future group like Food Bazaar, Big Bazaar, and Kishore
Biyani’s Fair Price etc will store only ITC Bingo. HORECA (hotels, restaurants and cafes),
entire cigarette distribution network including pan shops.
Retail tie-ups, regional flavours and distribution muscle, have helped ITC hit a bull’s eye with
its snack Bingo. In less than 6 months, ITC's Bingo has managed to grab 16% market share and
it hopes to touch 50% in a year
Bingo site (www.bingeonbingo.com) is a very different site with information about Bingo and
its flavors. Even initially Bingo sponsored many Bingo Remix nights in various clubs.
ITC with bingo adopted a Market Challenger strategy and chose a combination of flank and

frontal attack against the market leader Frito Lay’s.

Bingo Tick Tock Boing!’ mean?

Y FM radio channel. It’s an interactive game, wherein before a buzzer gets sounded, if you say
‘Bingo Tick Tock Boing!” you win a pot of money! Play it, its loads of fun! This game has

Durgesh Kumar Giri, BBA IInd Year

attracted high participation (running into a few million) in Delhi and Mumbai and now we are
running it in Bangalore.
With the rise of ITC bingo in no time.

FIRTOLAY (PEPSICO) AND BINGO (ITC)

Lays has revamped its branding strategy with new promotions featuring actress like Juhi
Chawla, Kareena Kapoor etc. About 35 AC BEST buses in Mumbai and metro in Kolkata are
now branded by Kurkure.
Frito Lays again launched a new consumer promotion campaign,
Chai Time Achievers campaign in which consumers could send their recipes using Kurkure.

Lays has launched Indian flavors like Lay’s

1) Chat Street,
2) India’s Mint Mischief,
3) Wafer Style etc.

Promotional Wars
The objective was to capture the consumers’ mind first and the market later. They also had a
long term ambition to overtake FritoLay’s sales and be the market leader.

For the short term, they wanted to gain at least 8 per cent market share nationally, create a buzz
around the brand and create a youthful brand personality.
The agency wanted to base the campaign on the three pillars of
Product, Placement and Personality. After a few brainstorming
sessions, the team realized that people in India still prefer traditional
snacks, such as banana chips and biscuits. To counter that, they

Durgesh Kumar Giri, BBA IInd Year

decided to use the familiar tastes and come up with an irresistible combination of flavours.

Strategic placement of the product was also an important factor, as the aim was to widen Bingo’s
reach and impact. Bingo was available in more that 250,000 stores in the first six months of its
launch. Brand awareness was also built by placing the Bingo racks in local grocery stores as well
as supermarkets. In most cases, a TVC is the main source of awareness for a brand, while in
Bingo’s case, it was the Bingo rack.

Another thing that had to be taken into consideration was the fact that snacking is a mindless
activity .They wanted to promote a brand that would be deliberately mad, spontaneous and
mindless.

FIRTOLAY (PEPSICO) AND BINGO (ITC)

The product launch was preceded by an online viral campaign, ‘Wait or Suffer’. The product was
introduced with a television, print and outdoor campaign.

The madness was also taken offline with mall activities in nine cities across India. Customer
interest was retained with interactive games and product tasting sessions. This activity saw
participation from 2,500 people and experienced close to 250,000 footfalls in the first four
months.

Various radio activities were done in Delhi, Mumbai and Bangalore to increase brand awareness.
Bingo also ran a contest when Aerosmith was on their official tour to India. Contestants were
supposed to record their favourite Aerosmith song in a local Indian language and submit their
entries.

Since it was a youth brand, digital media was used heavily for promotions. The Bingo National
Gaming Championship was one such example. The event was held in four cities and saw
participation from 25,000 contenders. Bingo Remix Nights were held in clubs across the country.

A fun website, bingeonbingo.com was created to increase awareness about the brand.

Durgesh Kumar Giri, BBA IInd Year

O&M claimed that the 360 degree campaign helped Bingo gain 12 per cent market share
nationally, as opposed to their initial target of 8 percent. Bingo had 16 per cent market share in
metros and a market share as high as 66 per cent in certain cities

To pump up volumes, FritoLay is in the process of rolling out an

aggressive marketing campaign led by its star endorsers, Saif Ali Khan, MS Dhoni and

Juhi Chawla
In order to add further zing to its product portfolio, in January 2008, the company launched
Kurkure Xtreme, a limited edition variant in two flavors—Risky Chilli and Electric Nimbu
(lime). This was perhaps a move to outdo competition from ITC’s snack brand Bingo, which was
launched in March 2007, in Indianized flavors like Tandoori Paneer Tikka (spiced cottage
cheese) and Chatkila Nimbu Achaar (tangy lime pickle).
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. Taking a cue
from its competition, Frito Lay India is focusing on unconventional retail points like cyber cafes
and telephone booths, in order to increase brand visibility and product reach.
To maintain top of the mind recall among its customers the brand has undertaken several unique
communication initiatives. The most recent, for example, is called "Chala Change ka Chakkar,"
which is an umbrella campaign for Frito Lay India’s entire product portfolio (Lay’s, Kurkure,
Cheetos, Uncle Chipps, and Lehar). This promotion will allow chosen consumers to live a day in
the life of an Indian Bollywood celebrity (who are the brand endorsers) like Juhi Chawla or Saif
Ali Khan. The idea is to generate excitement around the brand and have it stand out in the clutter
of existing brands.

Durgesh Kumar Giri, BBA IInd Year

The brand has undertaken similar promotions in the past. For instance, in 2004 it launched the
"Kahani mein Kurkure" ("Crispiness in the Story") campaign, which was a take on Indian
popular culture. The advertising campaign spoofed popular Indian TV shows like Jassi Jaissi Koi
Nahin (Indian adaptation of American sitcom "Ugly Betty") to appeal to Indian housewives, the
largest target audience to watch these programs.
In addition to targeting housewives, who play a significant role in making purchase decisions,
the brand appeals to the Indian family as a whole. The "Kurkure Chai Time Achiever’s Award"
was a contest launched by the brand where families were invited to submit interesting recipes
made with Kurkure. The winning family would have the opportunity to be famous and have their
photograph featured on one million Kurkure packs.
This direct marketing campaign was supported through television advertising, where Indian
celebrity Juhi Chawla, Kurkure’s brand ambassador, announced the winners of the competition.
The contest was also publicized through the website http://kurkure.co.in, specifically designed to
promote the contest. Using the website as a strategic tool for promotion helped the brand appeal
to a young audience that spends a considerable amount of time surfing the web.
Another novel branding initiative was a tie-up with South Western Railways in India to have
trains called the "Kurkure Express." These were special trains that operated only during the
holiday season. The brand was featured on reservation charts, coach indication slips, and during
any announcements about the train. This outdoor media was a unique way to target families who
travel by train during the holidays.
Conclusion:
As of now

Indian snack industry = 2500 crore.

Frito Lays = 48%,
Haldiram = 25% market share and
ITC bingo = 16% share.
Rest of the market is dominated by few regional players like Balaji.

Recommendation for lays:

Durgesh Kumar Giri, BBA IInd Year

 1) They can even target the old one and the children.

2) Firtolays also target to the disks and pups and even in various college canteens.

3) Should be focused on 3 marketing parameters:-

a) Undifferentiated marketing.
b) Differentiated marketing.
c) Concentrated marketing.

4) Improve Loop holes (distribution channel) in Frito-Lay.

5) Lays have to change their positioning.( comes as sweet flavor).

Recommendation for Bingo:

1) Tie-up with coke brand for promotional offer(coke + bingo).

2) Tie –up with haldiram.

3) it can launch new flavor as in non veg.(roasted chicken chips)

Durgesh Kumar Giri, BBA IInd Year