ACT II

POPCORN

Presented byAbhishek Agarwal

Debjani ChakrabortyDebraj Roy

Ekta MarwahMadhulika Mishra

Malini MathurPriya AroraRahul Arora

Introduction

•Came Into existence as ACT 1 in 1981•In 1984, Golden Valley developed microwave popcorn bag.•In 1991 ,Golden Valley was acquired by ConAgra Inc and launched in 130 countries.•Marketed under ACT II and Orville Redenbacher's brand name.•Various flavors were made available through out the world.•The Microwave popcorn has a shelf life of 1 year.

ACT II IN INDIA• Act II was introduced in India in 1999.• Common consumption was in movie theaters

and outdoor parks.• Earlier Microwave popcorns were made and

later instant popcorns were introduced.• Act II launched in many Indian centric

flavors'.• The brand did promotion Via advertisement

banking on the “Ease Of preparation” & “Even Papa can cook”

• Popcorn are one of the healthiest snack available.

• In 2008 ,ACT II was a Rs 40 Crore Brand.

Objectives

• To know the market share of ACT II popcorn in Gurgaon

• To compare ACT II with other major competitors

• To suggest various measures to increase the market Share of ACT II popcorn

STRENGTHS

• Affordable by all• Instant food• Packaging and Processing• Variety• Healthy and tasty snack

WEAKNESS

• Not considered as a regular snack.

• Negligible presence in the rural sector.

OPPORTUNITIES

• Opportunities for growth.• Target new distribution

channels.• ATFL emphasized more on R&D

to develop new products and flavors.

THREATS

• Strong competition from the snack food.

• Popcorn available at multiplex.• Health hazards for kids.

Data collection methodologyCollection of Primary Data1.Retail Audit

2.Questionnaire

3. Short interviews

Collection of secondary data

QuestionnaireName …………………………………………………….Age …………………………………….................Designation……………………………………………………Q1. Do you eat Popcorn?

a)Yes b)NoQ2. How often do you eat popcorn? a)Daily b) weekly c)Monthly d)whenever I go for a movieQ3. Which Brand do you prefer? a)Act II b)Magic c)street hawker d)local Q4.Which flavors do you like the best? a)Golden sizzle b) Classic salted c) butter pepper d) chili surpriseQ5.What is your favorite snack? a)Chips b) namkeen c)biscuits d) any other…….Q6. Which flavors would you be willing to try? a)Cheese b) schezwan c) caramel d) any other………………………….Q7. Have you gone for a repeated purchase? a) Yes b) NoQ8. What price are you willing to pay for ……gm ? a)Rs 5 b) Rs. 10 C) Rs.30 d)Rs.40Q9 ) Do you think popcorn at movie theaters are overpriced? a)Yes b) No

ACT II32%

Lays49%

Haldirams19%

Market Shares of Different Brands

12%

37%

51%

Family Members

22 to 44 & Above

7%

31%

31%

32%

Consumption Rate

DailyWeeklyMonthlyWhenever I go for a movie

75%

4%

10%10%

Brand Preference

Act IIMagicStreet HawkerLocal

53%

25%

22%

Snack Preference

Lays Chips

Haldiram bhel puri

Others

21%

43%

26%

10%

Flavor Preference

Golden Sizzle

Classic Salted

Butter Pepper

Chilli Surprise

28%

33%

23%

18%

Preferences for new Flavor

Cheese

Schezwan

Caramel

Any Other

80%

20%Ratio of Repeat Purchases

YesNo

19%

61%

15%4%

Prices Willing to be paid by consumers

5 to 1010 to 15 15 to 20`20 & above

85%

15%

Are popcorns available at movie overpriced

Yes No

56%31%

13%

Availability of Packets(Quantity Sold)

30 & above

30 & be-low

Zero

ACT IIpopping its way to the countryside!

1. lack of presence in the rural market

2. Lack of awareness in the lower middle class regarding branded popcorn

3. Expect the prices to be lower than the present prices.

SEGMENTATION

Branded foods variety of flavors Healthy fun snacksConvenience snacks

TARGETING

females middle class market pester power youth

POSITIONING

campaign theme “ even papa can cook “

low in fat and calorie content

Strategic positioning

Product• A warm, nutritious snack that is

fun to share with your family.• Available in two variants:

• Launched in 1999.followed by introduction of ‘ACT II snacks’ which failed miserably

TYPE FLAVORS QUANTITY SERVING EXPIRY

MICROWAVE NaturalButterButter loversSweet n salty

85 gms24gms

4 people 12 months

INSTANT Classic saltedGolden sizzleButter pepperChilli surpriseTomato chilli

60 gms 3 people 8 months

• Nutritional information:Edible oilIodized saltZero transfatCholesterolHigh fiberNo sugar

Recommendations• Introduction of new flavors:Schezwan, cheese, caramel, jeera, green

mango.Help in increasing trial of product• Launch a ‘Zero Fat‘ version• Introduce ready to eat popcorn in the form

of ‘popcorn balls’• Introduce new products like ACT II corn

chips, sweet corn, Potato Starz and Potato Heartz.

Place

• Mostly available in urban market in corner stores, general stores & supermarkets

• Weak penetration in rural market• ACT II vendors are also found

few and far between localized shopping arcades

Recommendations• Increase distribution tie-ups with--- multiplexes---organized DVD retail shops like

seventymm etc---Moser baer model---school and office cafeterias• Increase the distribution channel

margins to wholesalers and retailers• Establish vending machines at malls

, carnivals and other events• Increase the distribution of Rs 5

instant popcorn variant in rural markets

Price

TYPE FLAVOR SERVING QUANTITY PRICE

Microwave NaturalButter loverButterSweet and salty

4 people 85 gm Rs 35

Instant Classic saltedGolden sizzleChilli surpriseButter pepperTomato chilli

3 people 60 gm30 gm100 gm (family pack)

Rs 10Rs 5Rs 15

Collaborate with multiplexes to deliver ultimate cost advantage to consumers

Road side popcorn is priced at Rs 5 for 50 gm

Competition

Frito-Lay lays chips are priced at Rs 10 for 30 gmRs 20 for 70 gm

Haldirams Bhel Puri priced atRs 33 for 200gm

Promotion

• ACT II promotes through media like TV ads, Billboards, Hoardings, Posters, sales promotion , events, Internet etc

• Insignificant promotion initiative in few cricket tournaments

• Two variants of TV ads---”even papa can cook”---”prepare ACT II during

commercial break”

Recommendations • Celebrity endorsements• Promote on the health plank• A snacking alternative for

diabetics• Pop , peek & win promotional

campaign• Movie free with ACT II popcorn• Popfest- movie marathon

• Increase TV presence by releasing ad campaigns

• Add free popcorn recipes inside ACT II packets

• Club with other ATFL products i.e. bundling

• Offer quantity discounts – e.g.. save Rs 5 on 3 packets of ACT II instant popcorn

• Educate consumer about ease of cooking using microwaves

• Sell it as a ‘regular snack’