ACCURATE INSTITUTE OF MANAGEMENT AND TECHNOLOGY

SUBMITTED TO: SUBMITTED BY: Prof. Mukesh Sehrawat KARAN WALIAAIMT DM13151035

ABSTRACTThe first and foremost reason of taking up this project was the great growth shown by Bingo chips even after the presence of well established competitors such as Pepsi Co.

What I have tried to understand in this research is the satisfaction level and the preference of consumers towards Bingo chips introduced by ITC.

I even intend to study the most popular flavor of Bingo chips in the market amongst the sample chosen.

Wafer and Snack industry are a very minor part of the food processing industry as the snack sector is largely unorganized.

For this a survey was conducted in GREATER NOIDA 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.

Table of contents

S.No TOPICS1. Acknowledgement

2. Overview about the snack industry

3. SWOT analysis of snack industry

4. Company Profile

5. Strategies followed by ITC

6. Literature Review

7. Research Objectives

8. Research Design and Methodology

9. Data collection

10. Data analysis method

11. Analysis and Interpretation

12. Findings and Conclusion

13. Bibliography

Acknowledgement

Every study requires a guidance of someone who is working in that field. Firstly I would like to thank myteachers for providing an opportunity of preparing a research report & allowing us to use the resources of the institution during this project.

I extend my gratitude to Accurate Institute ofManagement and Technology for giving us thisopportunity.

I am extremely thankful to our project guide Prof.Mukesh Sehrawat for his precious guidance regarding the preparation of the project report. The

guidance has proved to be useful & without them, the preparation of this report might not have been possible.

I also extend our sincere thanks to the respondents, who helped us during the course of our project and for their gracious attitude.

I would like to take this opportunity to extend my warmthoughts to those who helped us in making this project a wonderful experience.

AN OVERVIEW ABOUT THE SNACK INDUSTRYThe Indian food and beverage sector is huge and highly competitive in nature. The industry comprises of several sub-sectors such as fruits &vegetables, meat & poultry, dairy, marine products, grains and consumer foods. Snack is one of the major segments of the packaged food division, which comes under the broad category consumer foods. Though the snacks market in India is dominated by the unorganized

sector, the organized sector has shown remarkable growth in terms of market share in the last few years

The Indian snack industry has witnessed several changes since 1995. Inthe initial years, the market was dominated by two players – traditional snacks player Haldiram and ‘Uncle Chips’ manufacturer Amrit Agro. Later on, with the entry of global beverage and snacks player PepsiCo, the market dynamics changed completely. Now, the market is dominated by PepsiCo with its wide range of product portfolio. The other major players include Parle Agro, ITC, Parle Products, Balaji Wafers and Parle Wafers among others. A number of regional players have also entered the market in the last few years and are giving tough competition to the big players

The Ministry of Food Processing Industries, Go I, has estimated the size of the Indian food market at US$ 19bn (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%, whilethe value-added processed food market is around 40%

The average annual growth of the food processing industry has been around 8% between

FY 01 – FY 06

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 6%.

Of the wide range of snacks available, potato chips constitute a sizeable segment of the Indian snack food industry, according to IndiaInfoline, the potato chip market is generally an unorganized industry

Nearly all potato chip snack products are manufactured and sold locallyThere 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.

SWOT   Analysis of   Snacks   Industry

Strengths

Abundant availability of rawmaterial

  Vast network of

manufacturing facilities allover the country

  Vast domestic market,

Urbanization.

W eaknesses  

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

  Favorable demographic profile

T hreats   

Affordability and cultural preferences of fresh food

  High inventory carrying cost,

and changing lifestyles

  Integration of development in

contemporary technologies such as electronics, materialscience, bio-technology etc

offer vast scope for rapid improvement and progress

  Opening of global markets

High packaging cost

High taxation

 

Competition between national and regional players

COMPANY PROFILEIncorporated on 24 August 1910 as the Imperial Tobacco Company of India Limited, the company's name was changed to ITC Limited in1974 Rated among the 'World's Best Big Companies' by Forbes magazine, ITC ranks third on all major profit parameters among India's private sector corporationsITC employs over 20,000 people at more than 60 locations across India It has a turnover of $3billion

 ITC is one of India's foremost private sector companies with a marketcapitalization of nearly US $8 billion and a turnover of over US $ 4.75billion .ITC is rated among the World's Best Big Companies, Asia's 'Fab50' 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 top10 `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 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

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

STRATEGIES ITC HAS BEEN FOLLOWING FOR BINGO

ResearchAfter making the decision to launch Bingo it started by sending a cross-functional team of eight individuals were sent across the country to research the snacking habits of the Indian consumer After travelling to14 cities and speaking to more than1,000 people, the team came back with an insight that Indian consumers were looking for novelty and excitement in existing snacks

Taste:For the recipes, the company went to the chefs in its hotels. The chefs came back with16 flavors with twists like bindaas, masti chaas, chatkila nimbu achar and tandoori paneer tikka-flavored potato chips, chilli and tomato-flavored mad angles inspired by khakras and other snacks.

Targeting:The Company decided that youngsters in the age group of 16-30 are the most experimental and hence they would be the primary target audience.

Marketing & Advertising:Bingo touched a chord with consumers through humor and irreverent advertising. On television, the company booked10 to 15 spots per channel per day on youth channels such as MTV and Star World, mass Hindi channels like Zee and Star TV, and news channels. It also had around20 spots on a variety of radio channels and advertised in most leading national dailies. In the top-30 cities, over 1,000 outdoor hoardings advertised the product. It also created a website www. bingeonbingo.com with offers, online games, downloads and even mobile games. According to industry estimates, ITC spent close to Rs 100crore on marketing.

Distribution:The Company distributed more than 4lakh 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.

This incredible leveraging of distribution system is credited by many as major cause of Bingo's success

LITERATURE REVIEW ITC ‘s new launch of Bingo clearly marked its competitor as Pepsi Co.

After moving into biscuit and pasta the company was all set to enter the readyto eat segment which saw an approximate growth of 30 % every year.

After reading the study presented in Financial Express October 09, 2007, I observed that the launch of Bingo was ITC foods 5th biggest launch .The businessline of

Staples Biscuit Ready to eat confectionery products

was expanded manifolds by this very introduction of Bingo by ITC.

This launch of Bingo led ITC to shoot up its sales by a good margin, ITC even ended up blowing 30-40 % of its media budget on new campaigns.

Kishore Biyani (Future Group) article Dated 23- 01-2010 in the times of india

His observations and analysis stated that the impact of Bingo was so huge that the market leader Pepsi Co was forced to cut down the profitmargin by 5% that is from 25% - 20% in order to maintain a decent share of the wafer market.

And what I found was that ITC is managing at a 5% higher margin than Frito lay.

A famous researcher and an essay writer Anton stated in his essay dated 23- Jun – 2011

ITC had achieved a great success with its products like sunfeast due to the presence of brand ambassadors such as Sharukh Khan to increase the product popularity.

But ITC did not go for the same strategy for Bingo as it had to over power the current market leader Frito Lays.So it started the promotionof Bingo with eye catching advertisements especially to attract the youth. It even sponsored various events of channel V , to target the major consumers of potato chips , which were the college going students.

A dedicated website for better consumer interaction was launched namedwww.bingoonbingo.com , in order to understand consumers better.

All in all it was seen that ITC had taken brilliant steps in order to bring Bingo to the current market way back in 2007.

OBJECTIVES OF the RESEARCH

To identify the most preferred flavor of Bingo.

To identify the parameters for the preference of Bingo Chips

To understand the preference of Bingo amongst other Brands in the same industry.

RESEARCH DESIGN AND METHODOLOGY

In this research project the survey method of data collection is used,to be more specific questionnaire method.The size is 45 Respondents in the sample size were asked to fill the questionnaires to gather the data.

OBSERVATION METHOD Contacting the customer personally and studying the response from the questionnaire filled.

Sampling Method:

Sampling has been done through Convenient Random Sampling Method and the sample size of 45 has been recognized from Greater Noida region.The in-depth interviews were conducted with the consumers of Bingo whowillingly cooperated

Targets consumers

Categories AgeYoung 18- 26

Data Collection:

 Primary Data—Questionnaires for discussions with various respondents to be interviewed during primary survey were designed during this phase.

This involved in-depth face-to- face discussions using semi-structuredquestionnaires with various respondents.

Secondary Data—Taken data from various magazines, Newspaper and other prominent source of information collected from different websites, journals, research papers and search engines.

Data Analysis Method:The data analysis of this research was represented on qualitative as well as quantitative manner. Application packages like MS Office (Microsoft Word, Microsoft Excel).

ANALYSIS

Analysis no 1

Which is the most preferred flavor of Bingo in the Greater Noida region

For this the following analysis has been made

RANK

Masala Potato Chips

Salted Potato Chips

Tomato

Nimbu

Tandoori Panner

Chilli Chatka

Tedhe Mede

Achari Masti

Mad Angles Normal

1 7 5 10 3 3 4 1 5 52 4 4 8 3 2 1 5 5 103 6 8 6 10 4 4 3 1 14 4 12 2 3 7 3 4 4 45 3 6 3 6 10 3 6 4 56 4 4 3 6 6 4 11 4 47 7 2 3 7 4 7 3 8 58 8 3 3 3 4 7 4 5 79 1 0 6 3 4 11 7 8 3

TotalSample 44 44 44 44 44 44 44 44 44

1 respondent had no response as he is not aware of bingo chips

The above table clearly shows the preference of different Bingo flavors among the people of Greater Noida.After analyzing the above table the following result is concluded

Ranks as per analysis

Flavour No of repondentsin favour of therank

1 Tomato 102 Mad Angles Normal 103 Nimbu 10

4Salted Potato Chips 12

5 Panner 106 Tedhe Mede 117 Achari Masti 8

8Masala Potato Chips 8

9 Chilli Chatka 11

INTERPRETATION :

So it can be clearly seen that the most preferred flavor for Bingo Chips is the “tomato” as it has been ranked no 1 by the maximum peopleof the sample and Chili Chatka is the least preferred flavor as it hasbeen ranked at no 9 by maximum number of people.

Analysis No 2

What are the most preferred parameters for choosing Bingo by the people of Greater Noida.

For this the following analysis has been made

The above table clearly shows the preference for various parameters for the consuming Bingo Chips by the people of Greater Noida.

After analyzing the above table the following result is concluded :

RankVariety Taste Price

Quality

Quantity

Packing

1 4 25 3 6 3 22 9 4 5 20 2 43 6 3 6 10 15 44 3 5 9 6 6 165 14 3 8 2 9 96 8 4 13 0 9 9

  44 44 44 44 44 441 respondent had no response as he is not aware

of bingo chips

Ranks as per analysis

Parameter

No of respondents in favor of the rank

1 Taste 252 Quality 20

3Quantit

y 154 Packing 165 Variety 146 Price 13

INTERPRETATION:

It can be clearly seen by the analysis that taste is the most important factor which makes the people buy Bingo as it has been ranked No 1 by majority of the sample selected.

Whereas we can also see that quality is the second most preferred parameter as it has received rank 2 by most of the people. Hence it can be stated that people prefer bingo majorly because of its taste and quality.

Price is not at all the driving factor for the purchase of Bingo Chipsby the people of Greater Noida as it receives Rank No 9 by most of thesample.

Analysis no 3

Which is the most preferred among the common wafer brands by the consumers of Greater Noida?

For this the following analysis has been made

RankKurkure Lays

Pringles

UncleChips

Haldirams Bingo

1 9 23 2 3 1 62 12 9 3 8 6 73 9 2 1 7 8 174 7 2 2 16 7 105 4 6 10 9 12 36 3 2 26 1 10 1

Total sample 44 44 44 44 44 44

1 respondent had no response as he is not aware ofbingo chips

The above table clearly shows the brand preference for consumption of potato chips by the people of Greater Noida.

After analyzing the above table the following result is concluded

INTERPRETATION:

After making the analysis and computing the result it was observed that Frito Lays is the most preferred brand amongst the other common brands available for potato chips as it was ranked no 1 by the maximumpeople from the sample.

Bingo though stands at rank 3 as per the analysis.

Pringles is the least preferred brand amongst all the brands.

FINDINGS AND CONCLUSION According to the survey it has been found out that bingo is

famous for its tomato flavor followed by Mad Angles and the Nimbuflavor in the Greater Noida region.

Whereas the Chili Chatka flavor is the least preferred amongst the people of Greater Noida.

Rank as per analysis

Brand No of Respondents in favor of the rank

1 Lays 232 Kurkure 123 Bingo 17

4Uncle Chips 16

5 Haldirams 126 Pringles 26

Bingo is more over preferred mostly because of its taste in comparison to the other factors, and people are not really considering the price of the product for its purchase.

Even after so much of awareness about Bingo Potato Chips in the Greater Noida region it still stands at Rank 3 among the other available brands. The least preferred brand is Pringles It may bebecause Pringle is based on American recepies and tastes and the Indian public has not been able to warm up to the American tastes. Also, Pringles is imported which makes its little more expensive than Indian snacks

CONCLUSION

As the survey has been conducted it can be very rightly said that since the launch of Bingo Chips , it has been preferred to a great extent even after the presence of various other major brands such as Lays and Kurkure.

Although there is was a great presence of the very popular brands likeLays, Bingo was able to create a market of its own.

The reason because of which Bingo has achieved a great share in the market are the excellent marketing and branding strategies followed byITC.

Bingo is in the growth stage of its life cycle

It can also be concluded that in the coming time Bingo will be going head to head with Lays and other available brands.

Overall the advertising used by ITC is creating impact on purchasing decision of people and due to its popularity it was easy to conduct the research since the respondents were aware of Bingo and people seemto be satisfied with Bingo.

BIBLIOGRAPHY

www.allbusiness.comwww.bingeonbingo.com www.itcportal.com Times of India Financial Express

Also various studies and articles were read for guidance which are as following:

Financial Express October 09,2007 the study for Bingo Chips

Kishore Biyani (Future Group ) article Dated 23- 01-2010 in the times of india .

A famous researcher and an essay writer Anton stated in his essay dated 23- Jun – 2011