bingo colour

8/7/2019 BINGO COLOUR

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INTRODUCTION

India is predominantly rural in spite of the extensive industrial development.

Rural India has been a market of enormous size and potential that was

waiting to be exploited but was hardly ever done so. However things are

changing now. With the proliferation of new brands in newer product

categories, coupled with growing saturation in urban India, marketers,

especially FMCGs are looking to rural India to be a source of volumes andgrowth.

The tobacco industry has been facing declining volumes over the last several

years and also there is a gradual decline in volumes in the cigarette industry.

In spite of this the profitability of ITC (Indian Tobacco Corporation) over the

last few years has been increasing due to increase in the prices. The mostfeasible way to increase volumes is to encourage large scale switching from

the bidi smoking segment. Earlier there was a huge price differential between

bidis and the lowest priced cigarettes (plains/ RSFTs). Hence bingo category

was introduced to provide a lower cost cigarette option for the bidi smoker.


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What is Bingo ???

Bingos are cigarettes with length below 59mmand they do not have a filter.

Its purpose was to make the bidi smokerswitch to cigarettes.

Even though it was a big success initially, its attraction, over theyears, has declined.

Though price increase was an important reason, even otherwisepeople came to see little value in bingos.

Rather it has been found that people switching from bidis tocigarettes would prefer using RSFTs to bingos in spite of thehuge price gap between the two of these. The problem is sincepeople dont see value in bingos; fewer people are switching tocigarettes, then otherwise.


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BROAD RESEARCH OBJECTIVES

To gain an understanding of rural India, the consumers and the

markets to decide on the appropriate marketing mix for rural India for

various products

Secondly to find out what are the obstacles to increasing category

switching from bidis to bingos and the reasons for the poor value

perception of bingo among bidi smokers.

The focus now narrows down to design a communication strategy

aimed at the rural consumer


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Better BrandProjection

Of Bingosvis--vis

Bidis

Of Productsin general

in rural

Design of aCommunication

Strategy

Communication strategy aimed at the rural

consumer.


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COMMUNICATION STRATEGY

MODEL

Communication

Strategy

Brand

Image

Situational Factors

Information

Processing

Characteristics

Environmental

Influences

Attitude, Motivation,

Involvement

With the product

Purchase

DecisionOTHER

FACTORS


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The two main issues with a communication strategy are:

What to communicate (i.e. content of the communication)

How to communicate (i.e. the channel/media or vehicle for the communication).

A communication strategy consists of:

Message: The spirit of the communication

Content parameters: Theme, Language, Metaphors

Channel of Delivery: Media, Activities

There are some intervening variables that mediate the way a communication

strategy creates an image of the brand in the consumers mind.

The intervening variables fall into three categories:

External Environment variables like family, social group and lifestyle, w

hich

areexternal to the consumers mind and are influences of other minds on the

consumers decision.

Individual Determinant variables like attitude, motivation, information

processing, which are internal to the consumers mind

Situational variables like mood and routine tht influence brand image.


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COMMUNICATION STRATEGY

Usage issue:

Cost consideration: Send across the fact that itcan be bought for as low as 2 rupees

Physical Limitations: Smoking a few bingos aday gives better satisfaction than smoking 2bundles of bidi.

Using up time: Bingo takes more time to smoke,

but every bingo satisfies you more than a bidiand saves you from the irritation, need to smokemore


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The Bidi/ Cigarette market

features The most prefer Brands of Biri

are Telephone, No27, 502

Pataka.

Premium Biri cost = Rs. Five a

bundle Other known brands cost

around two to three rupees each

bundle

A bundle is supposed to contain

around 22-24 sticks, but usuallycontains 17-20 sticks each.


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Communication of Capstan

(low)

Cavander board isdisplayed in approximately

60 % to 70 % of the retail

outlets with comparison to

10% of ITC Bingo.

Cavander used to smoke

drugs,

The drug smoker empty

the Cavander cigarette ofall its tobacco and fill it

with the drugs.


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BRAND IMAGE VARIABLES

Taste ofBidi vs. Bingo

Bidis have a different kind of tobacco as compared tocigarettes. The bidi tobacco along with the tenduimparts bitterness to the taste of a bidi, very unique toit.However the amount of tobacco per bidi stick is verysmall. Each cigarette stick contains a lot more

tobacco.Besides the mouth of a bidi is narrow while thatof a cigarette is very broad.

Usage characteristics ofBidis vs. Bingos

A dual smoker would smoke a bundle or two of bidis costing

him two to four rupees each and just one or two cigarettes.

smoker of bidi cannot usually smoke cigarette in large

numbers becausehe cannot afford to pay.


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Focus on the individual pleasure of smoking

and the low cost. This shows value for money.

Taste issue: It has thetaste ofCapstan brand,stress on good qualitytobacco.

Health Issue: Show itsclean, hygienicmanufacturing facilities

and good, consistentquality Comparisons withbidi, if possible Byshowing its unhygienicmanufacturing facilities


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Influence of Social Groups

Status Perception vs. ProfligacyPerception

Shopkeeper Influence

Channel of Delivery

Rural Activities

Retailer/Consumer Schemes

Displays, hoardings, wall paintings:Other Media

Presence at Religious occasions

Packaging Communication


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REPOSITIONING OF BINGO

FACTORS-

SmallerBingos

Extinguishable and Re-lightable Taste

Filter


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MARKETING STRATEGY IN

RURAL INDIA Product Characteristics

Communication: Message

Communication: Content Communication: Channel


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SUGGESTIONS FOR BINGO

Product Changes

Communication Strategy: Message

Communication Strategy: Content Communication Strategy: Channel


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THANK YOUTHANK YOU

bingo colour

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