Branded Snacks Presntn

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Branded Snacks

Pragalbha Kapoor

09BSDDU0053



Introduction

A snack food is seen in Western culture as a typeof food not meant to be eaten as a main meal of the day breakfast, lunch, or dinner but ratherto assuage a person's hunger between thesemeals

Snack foods are typically designed to be portable,quick and satisfying. Processed snack foods aredesigned to be less perishable, more durable, and

more appealing than prepared foods. They oftencontain substantial amounts of sweeteners,preservatives.



Categories & Major Players

Biscuits ± Parle

± Britannia

± ITC

Wafers ± Frito-lay

± ITC

± Parle

Namkeens

± Haldiram

± Frito-lay

±

SM foods



Sector Analysis

The market share of the Indian snacks is

around US$ 3 billion with a growth rate of

around 15-20 %.

Source: www.businessmapsofindia.com(last updated 27 dec.2010)



Market Share Biscuits

Source: Economic times (6 dec. 2010)

45%

38%

9%

8%

Parle

Britannia

ITC Sunfeast

Others



Wafers

45%

16%

16%

23%

Frito-Lay

ITC Bingo

Parle Hippo

Others



Namkeens

40%

20%

16%

24%

Haldiram

Frito-Lay

SM Foods

Others



Strategies of Top Three PlayersI

n Eachcategory



Biscuits

Parle Parle targets young generation, i.e. school going

children.

They have adopted the market penetration

strategy i.e. low price along with capturing of alarge market.

Also they focus on providing good qualityproducts at the same time, which means it uses

the value pricing method.

The extensive distribution network, built over theyears, is a major strength for Parle products.



Britannia

A strong quality of the product and customer

satisfaction:

A growing relationship with customer andcustomer retention

A growing emphasis on global thinking and

local marketing



ITC Sunfeast

Sunfeast using heavy promotion

Sunfeast also uses lot of below the linepromotions for brand building. It sponsorsSunfeast Open, a recent initiative aiming atthe school kids by providing them anopportunity to enhance creativity throughpainting competitions, Hara Bano campaignwhich set a world record in planting maximumnumber of saplings etc.



Wafers

Frito-lay Multinational snack maker Frito-Lay has

indianised its potato chips brand Lays

They have recently gone for customerparticipation. They asked people to send their

style and taste and win prize money. This helps

lays to get more indianised.



ITC Bingo

Novelty Factor: The snack market is driven by impulse purchasesand Bingo had the advantage of the ITC parentage that encouragedconsumers to try out the product without much inhibition.

Regional Flavors: This is where Bingo beat Lays in their own game.Lays was the first to localize flavors but Bingo specialized on localflavors and the key differentiator was the Localized flavors.

Distribution strength: the most critical success factor of Bingo is thedistribution strength. . Go to any supermarket or kirana store, Bingo

is highly visible. In India there is no company that can match thedistribution strength of ITC and this has helped this new launch verymuch in terms of Shelf Space and retailer support.



Parle Hippo

Hippo calls itself Delicious Baked Munchies ". This bakedwheat based munchy is neither a potato chips nor abiscuit, but something in between.

Hippo is being positioned as a hunger- killer. The brand

wants to be a guilt-free snack for hunger moments. The brand also chose a different way to communicating its

positioning to the consumer. The brand is trying to tell astory. The story is based on the premise that ' Hunger is theroot cause of all evil. So the brand motto is ' fight

hunger, fight evil'. Hippo has cleverly used the packaging to engage the

consumers after the purchase. The pack containsinteresting information and one-liners which takes thebrand-consumer conversations beyond advertising.



Namkeens

Haldiram They have adopted promotion strategy to use

print media. They provide iron racks to be kept in retail

store.

They launched some promotional schemes forboth dealers and consumers.



Frito-lay (Lehar namkeens)

On the first they have positioned their

products as TAAZA namkeen.

They use qualitative packaging technique thathelps product to keep fresh for a long time

that increased the shelf time.

They have adopted strategy of differentiation.

They launched different taste like nimboo

aalu bhujia.



SM foods

They have adopted different promotional and

distribution strategy like they have their own

vehicles painted with the product name that

moves around, which in a way is publicity for

them.



Emerging Trends

according to a recent report, Shift in consumerpreference for value-added health and wellnesssnacks

There is shift in thinking about the snacks that itshould be healthy with good taste. Now dayscompanies involved in this sector are providingand evolving products with good taste and

health. They are positioning their products ashealthy products and having nutritious value fortheir children, it doesnt affect the health.

Branded Snacks Presntn

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