BINGO - ITCThis is an individual assignment to analyze ITC’s brand extension Bingo.

Indian Institute of ManagementBrand Management – Sec A

Submitted To:-Prof. Sameer Mathur

Submitted By:-Raj Kumar – PGP30121

Overview - ITC

Overview - ITC ITC is a conglomerate,

company operates in FMCG-Cigarette, FMCG-others, Hotels, Agri business, Paperboards and packaging

ITC Foods, the company has revenues of Rs 5,000 crore

Overview - Brand

Overview – BingoBingo! was launched in March 2007 with a

wide range of exciting packaged salted snacksThe range includes multiple flavor variants of

Potato Chips & Finger SnacksThe brand is associated with youth, fun and

excitement. It fulfils the consumers need for variety and novelty in snacks

At present Bingo! has 5 sub-brands in its portfolio – Yumitos, Tedhe Medhe, Mad angles, Tangles and Galata Masti for different consumer needs

Overview - CategoryParent category for bingo (chips) is Sweet

and savoury snacks grows by 25% in 2014 to reach INR150 billion

Frito-Lay India maintains its leadership with a 32% value share in 2014

Increasing penetrationin rural India with small pack variants is growth driver

2010 2011 2012 2013 20140

20000

40000

60000

80000

100000

120000

140000

160000

60,938

77,328

95,880

119,567

149,867

Snacks Revenue for past 5 years

Year

Overview - Category In year 2014, Chips/crisp contributed

to of 31% of snacks segment revenue Revenue from chips was 46900 mn

For the year 2013-14

2010 2011 2012 2013 20140%

5%

10%

15%

20%

25%

30%

35%

40%

33.5%

29.1%

23.1% 23.4% 24.7%

31%

34.64%1%

1%

32%Chips/Crisps 

Extruded Snacks 

Nuts 

Popcorn 

Others

YoY growth for chips segment – Category Growth

Snacks segment wise distribution for year -2014

Bingo – Market Share The Bingo brand of chips was launched

by ITC on 14th March 2007 Market share of Bingo is 7% with

revenue of 10445 mns Frito Lay is dominant player with

32% share, other players are

Haldiram, Bajaj Wafers

YoY revenue growth for Bingo

Market share of Bingo in Indian Snacks market for year -2014

32%

20%8%

7%

4%

29% Frito-Lay India 

Haldiram

Balaji Wafers

ITC - Bingo

Prataap

Others 

Bingo!

Product

Place

Price

Promotion

4Ps of Brand extension

Product Actual Product: Bingo! In 19

flavors5 categories with variety of

flavorsYumitos - 9 , Mad Angles – 5, Tangles – 3, Tedhe Medhe – 1, Galata Masti – 1

PromotionBingo’s launch was timed around the World

Cup to get advantage of cricket lovers in the country.

Crowdsourcing: There was no celebrity endorsement

ITC booked 10 to 15 spots per channel per day, 20 spots on radio stations and 1000s hoarding advertisement of the product

Digital media was utilized heavily – 47 Lakhs likes on facebook,

Mad Angles Twister application on facebook was another initiative

PromotionBingo national gaming

championship was launched The advertising revolved around

slapstick seek attention

PlaceGrocery Stores, Karyana Stores,

Bakery, WholesaleHORECA (Hotels, Restaurants and

Cafes), Local shops, and Convenience Stores

High availability at big and small retailers across the country

Distribution of more than 4,00,000 large racks to retailers

PriceAvailable in Rs. 5, Rs. 10 and Rs.

20 packsITC has competitive advantage of

backward integration with e-choupal for supply of raw materials.

ITC’s has advantage of high quality packaging from its printing and packaging business.

Segmentation & Targeting

Psychographic (attitude/behavior)

• Sports enthusiastic

• Outgoing • Sociable• Entertainment

lover• fun• Seek flavor

Demographic(Age / Income)

• 15-35 years• Urban youth• Low price

Geography• North- Chilly Spicy• East- Mustard Sting• West- Salted• South- Spicy

Segmentation is done on basis of psychographic, demographic and geographic basis and target groups are defined accordingly.

PositioningBrand slogan: No Confusion, Great

Combination! Entertainment, Youth, Friendship,Fun and ColorfulInnovative: multiple flavors

Bingo! Is positioned as a youthful and innovative snack, offering the consumers with choice in formats and traditional flavor

Competition Fritolay – Market leader• Owned by Pepsico, Largest player in the market• Lays, Kurkure, Uncle Chipps, Cheetos and Leher• More than 50% share

Bingo – Market Challenger• Owned by ITC, • 16% share

Parle Monaco – Market Nicher• Aalo chaat, health conscious variant of chips• Targeting people who like less spicy and masala chips

Other players – Market Followers • Haldiram, Balaji Wafers, Prakash Snacks and MTR• unorganized offerings, aimed at the price-sensitive, less loyal

audience.• Balaji Wafers is a dominated player in West India

Points of Parity

Product category and features that are similar between the product and its competitor. QualityConsumer awarenessPricePotato Chips category

Points of DifferenceVariety of flavorsRegional tasteAttractive packagingHumoristic

advertisingQuantity –

Comparatively more in Bingo

Distribution channels of ITC

Referenceshttp://

www.itcportal.com/businesses/fmcg/foods.aspx

https://en.wikipedia.org/wiki/ITC_(company)http://bingosnacks.com/potato-chips.htmlhttp://

articles.economictimes.indiatimes.com/2015-03-06/news/59844409_1_pepsi-co-india-snacks-sanjiv-puri

http://www.campaignindia.in/Article/227495,itc-foods-spoofs-dubbed-hollywood-flicks-in-new-bingo-chips-campaign.aspx

http://www.rediff.com/money/2007/may/01bspec.htm

http://www.business-standard.com/article/management/itc-foods-not-so-straight-111102400020_1.html

THANK YOU & Good Bye