TABLE OF CONTENT

SR. NO. TOPIC PAGE NO.

1 INTRODUCTION 1-8
1.1. General Introduction

1.2. Industry Profile Of Indian

Food Processing Industry
1.2.A.Indian Food Processing Industry

1.2.B.Indian Snack Industry: an Overview

1.2.C.SWOT Analysis of Snack Industry

1.3. Profile Of The Organisation: ITC Ltd

1.3.A. Establishment

1.3.B. Growth And Diversification

2 STRATEGIES FOR ITC BINGO 9

2.1 Research

2.2 Taste

2.3 Targeting

2.4 Marketing and Advertising

2.5 Distribution

3 OBJECTIVES OF RESEARCH 10

4 NATURE AND SCOPE OF THE STUDY 11

4.1 Statement Of Research Problem

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 4.2 Statement Of Research objective

5 LITERATURE REVIEW 12-19

5.1 Evolution Of Bingo And Its Marketing Strategies

5.2 Pepsis Lay looses out to ITCs Bingo in Future

Bazaar chains.

5.3 Bingo: Shake Up In Snack Segment

5.4 With Bingo Nothing Was Planed

6 RESEARCH METHODOLOGY 20-21

6.1 Research design And Methodology

6.2 Sampling Method

6.3 Research instrument

6.4 Data Analysis method

6.5 Data Collection

6.5.1 Primary Data

6.5.1.1 Pilot Field Survey

6.5.1.2 Detailed Field Survey

6.5.2 Secondary Data

7 DATA ANALYSIS 22-32

7.1 Drawing Of Inferences Through Statistical Analysis

7.2 Spss Analysis

8 STRENGTH AND LIMITATIONS OF THE 33

STUDY

8.1 Strength Limitations

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 8.2 Cost limitations

8.3Time Limitation

9 FINDINGS AND SUGGESTIONS 34

10 CONCLUSION 36

11 BIBLIOGRAPHY 37

ANNEXURES
Questionnaire

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 CHAPTER-1
INTRODUCTION

Marketing

Marketing is the process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods and services to create exchanges that
satisfy individual and organizational objectives.

WHO IS CUSTOMER
A customer is the most significant icon for long term survival of any firms
or enterprises in terms of retaining quality products and services at affordable cost
as for being the market king.
A customer doesnt dependent upon us while in several aspects, we
dependent upon him. A customer is not an interruption of our work; actually,
they are the purpose of them.

We are not doing any sorts of favors by serving them; actually, they are
doing it for our flavor by giving us the opportunity to do so.

Today, more companies are recognizing the importance of satisfying and

retaining customers. Satisfied customers constitute the companys relationship
capital. If the company were to be sold, the acquiring company would to pay not
only for the plant and equipment and the brand name but also for the delivered
customer base mainly the number and the value of the customer who would do
business with the new firms.

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Consumer Preference :
How do Buyers form their preference. Their preferences are influenced by their
past buying experience, friends and associates advice, and the marketers and
competitors information and promises .Though customer preference is a very
qualitative term and it is very difficult to measure. In this study an effort has been
made to measure the customer preference level.

Definition: Preferences refer to certain characteristics any consumer wants to

have in a good or service to make it preferable to him. This could be the level of
happiness, degree of satisfaction, utility from the product, etc.

Description: Preferences are the main factors that influence consumer demand.
Economists study preferences to perceive the demand for each commodity and
the future implications it may cause.

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 CHAPTER-2

INDUSTRY PROFILE OF INDIAN FOOD PROCESSING INDUSTRY.

A.) Indian Food Processing Industry

Food processing industry in India is a sunrise sector that has gained prominence
in the recent years. Availability of raw materials, changing lifestyles and
relaxation in policies has given a considerable push to the industrys growth. This
sector is among the few that serves as a vital link between the agriculture and
industrial segments of the economy. Strengthening this link is of critical
importance to improve the value of agricultural produce; ensure remunerative
prices to farmers and at the same time create favorable demand for Indian
agricultural products in the world market. A thrust to the food processing sector
implies significant development of the agriculture sector and ensures value
addition to it.

Ministry of Food Processing Industries

The Ministry was set up in 1998 and the industry segments that come under its
purview are:

Fruit & Vegetable processing (including freezing and dehydration)

Grain Processing

Processing of Fish (including canning and freezing)

Processing and refrigeration of certain agricultural products, dairy products,

poultry and eggs, meat and meat products

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 Industries related to bread, oilseeds, meals (edible), breakfast foods, biscuits,
confectionery, savory snacks, malt extract, protein isolate, high protein food,
weaning food and extruded food products (including other ready-to-eat
foods)

Beer, including non-alcoholic beer

Alcoholic drinks from non-molasses base

Aerated water and soft drinks

Specialized packaging for food processing industries.

The Ministry of Food Processing Industries, GoI, has estimated the size of the
Indian food market at US$ 191 bn (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%, while the value-added processed food market is around 40%.

The average annual growth of the food processing industry has been around 8%
between FY01-FY06. 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%. Indias share in world trade
in respect of processed food is about 1.6%.

An extensive and highly fragmented industry, the food processing sector largely
comprises of the following sub-segments: fruits & vegetables, milk and milk
products, beer & alcoholic beverages, meat and poultry, marine products, grain
processing, packaged/convenience food and packaged drinks. A large number of
players in this industry are small sized companies, and are largely concentrated in
the unorganized segment. This segment accounts for more than 70% of the output

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 in volume terms and 50% in value terms. However, though the organized sector
is comparatively small, it is growing at a much faster pace.

B) Indian Snacks Industry: An Overview

Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack is

described as a small quantity of food eaten between meals or in place of a meal.
Snack food generally comprises bakery products, ready-to-eat mixes, chips,
namkeen and other light processed foods According to the ministry of food
processing, the snack food industry is worth Rs 100 billion in value and over
4,00,000 tonnes in terms of volume.Though very large and diverse, the snacks
industry is dominated by the unorganized sector. According to an Apeda survey
almost 1,000 snack items and 300 types of savouries are sold across India. The
branded snacks are sold at least 25% higher than the unbranded products.
Savoury snacks have been a part of Indian food habit, since almost ages. Though

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there is no particular time for snacks, normally they are consumed at teatime. The
variety is almost mind-boggling with specialties from all regions, which have
gained national acceptance.

The industry has been growing around 10% for the last three years, while the
branded segment is growing around 25% per annum to stand at Rs 5,000-Rs
5,500 crore, due to various reasons like Multiplex culture, snacking at home
while watching TV, pubs and bars (where they are served free). AC Nielsen's
retail audit shows that the large sales volumes are due to a marked preference for
ethnic foods, regional bias towards indigenous snacks and good value-for-money
perception. Of course the branded segment is much smaller at Rs 2,200 crore,
which is what makes it so attractive to food Companies that are looking at bigger
shares. In the branded snacks market, to get down to basics, Frito Lay commands
a share of 45%, followed by Haldirams at 27% and ITC at 16%. The rest is
divided between a handful of new entrants, wannabes and many regional players.

Of the wide range of snacks available, potato chips constitute a sizeable segment
of the Indian snack food industry, according to India Infoline. The potato chip
market is generally an unorganized industry. Nearly all potato chip snack
products are manufactured and sold locally. There 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. As the Indian economy
continues to grow, and production standards improve, many snack food
companies are making significant investments into plant equipment and
packaging machinery.

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Pepsi Foods Ltd., now known as Frito-Lay India Ltd., produces India's largest
snack food manufacturers brands, including Ruffles, Hostess, Cheetos and Uncle
Chips. Frito Lay's story is an example of how American recipes were adjusted to
satisfy local tastes. Procter & Gamble's Pringles brand of potato crisp was
launched in Delhi in 1999. Pringles is also a baked potato crisp, unlike many
other potato based Indian snack foods that are fried. P&G currently imports the
Pringles product and therefore the product has been priced at a premium and is
marketed to a micro-niche.

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C) SWOT Analysis of Snacks Industry

Strengths

Abundant availability of raw material

Vast network of manufacturing facilities all over the country

Vast domestic market, Urbanisations

Weaknesses

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

Favourable demographic profile and changing lifestyles

Integration of development in contemporary technologies such as

electronics, material science, bio-technology etc. offer vast scope for rapid
improvement and progress

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 Opening of global markets

Threats

Affordability and cultural preferences of fresh food

High inventory carrying cost, High packaging cost

High taxation

Competition between national and regional players

PROFILE OF THE ORGANIZATION: ITC Ltd.

A) Establishment:

Incorporated on 24 August 1910 as the Imperial Tobacco Company of

India Limited, the company's name was changed to ITC Limited in 1974.
Rated among the 'World's Best Big Companies' by Forbes magazine, ITC ranks
third on all major profit parameters among India's private sector corporations.
ITC employs over 20,000 people at more than 60 locations across India. It has
a turnover of $3 billion.

B) Growth and Diversification:

ITC is one of India's foremost private sector companies with a market

capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75
billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50'
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 top 10 `Most Valuable (Company) Brands', in a study conducted by
Brand Finance and published by the Economic Times.

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 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 shareholder value. ITC
practises 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.

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 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). The Company's 'e-Choupal' initiative is
enabling Indian agriculture significantly enhance its competitiveness by
empowering Indian farmers through the power of the Internet. This
transformational strategy, which has already become the subject matter of a
case study at Harvard Business School, is expected to progressively create
for ITC a huge rural distribution infrastructure, significantly enhancing the
Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India

Limited, is aggressively pursuing emerging opportunities in providing end-
to-end IT solutions, including e-enabled services and business process
outsourcing.
ITC's production facilities and hotels have won numerous national and
international awards for quality, productivity, safety and environment
management systems. ITC was the first company in India to voluntarily
seek a corporate governance rating.

ITC employs over 21,000 people at more than 60 locations across India. The
Company continuously endeavors to enhance its wealth generating
capabilities in a globalizing environment to consistently reward more than 3,
88,000 shareholders, fulfill the aspirations of its stakeholders and meet
societal expectations. This over-arching vision of the company is
expressively captured in its corporate positioning statement: "Enduring
Value. For the nation. For the Shareholder.

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 STRATEGIES OF ITC FOR BINGO
Business Standard's Annual Brand Derby has picked Bingo as the most successful
launch of 2007. Ten months after it entered the category with its wafer snack
brand, Bingo, ITC's foray into the Rs 1,800-crore branded snack market has
fetched the company a 16 per cent market share across the country (Source: AC
Nielsen). What made the brand tick let's take a look

Research: After 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 to 14 cities and speaking
to more than 1,000 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 with 16 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 booked 10 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 around 20 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

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website www.bingeonbingo.com with offers, online games, downloads and even
mobile games. According to industry estimates, ITC spent close to Rs 100 crore on
marketing.

Distribution: The Company distributed more than 4 lakh 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.

OBJECTIVES OF RESEARCH

1. To identify the most preferred flavour of Bingo and know the satisfaction level of people who eat
Bingo.

2. To find out the preferences of people for different brands.

3. To find out how much people spend on snacks weekly

4. To identify the impact of advertising while making a purchase decision for Bingo.

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 NATURE AND SCOPE OF THE STUDY

STATEMENT OF RESEARCH PROBLEM

In the branded snacks market, to get down to basics, Frito Lay commands a share of 45%,
followed by Haldirams at 27% and ITC at 16%. The rest is divided between a handful of new
entrants, wannabees and many regional players. Out of these ITCs Bingo is a new entrant in the
market, which was launched in 2007. ITC has launched Bingo in a wide variety of flavours and
formats, ranging from potato chips to finger snacks. Because of its different and catchy
advertisements Bingo has created a buzz in the market. Therefore, the aim was to analyze the
consumer preference in Navi-Mumbai region. Analysis was started by dividing people into those
who like to eat snacks and those who dont. The study was based on the survey of people who
like to eat snacks. This survey was conducted in Navi-Mumbai region. To collect the data a
questionnaire was designed.

STATEMENT OF RESEARCH OBJECTIVES

1. To identify the most preferred flavour of Bingo and know the satisfaction level of people
who eat Bingo.
2. To find out the preferences of people for different brands.
3. To find out how much people spend on snacks weekly.

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 4. To identify the impact of advertising while making a purchase decision for Bingo.

LITERATURE REVIEW
EVOLUTION OF BINGO AND ITS MARKETING STRATEGIES

Bingo is ITC's newly-launched ready-to-eat snacks that hit the market in March this year. In
mid-March, ITC announced its foray into the Rs 2,000-crore (Rs 20 billion) fast-moving branded
snack market that has one major competitor - Frito-Lay. After biscuits and pasta, the company is
now eyeing this segment, which is growing at 30 per cent every year.

After spending months researching the consumption habits and consumer behaviour, ITC has
based its campaign on solid research insights - like it had done earlier when it entered biscuits.

The company's in-house research team of eight people travelled extensively across the country,
studying typical home-made snacks such as bhel, khakras, gol gappas and so on. The verdict: as
many as 70 per cent of those surveyed confirmed that they would like to have snacks which are
slightly familiar yet have variations in taste.

To achieve this, the company turned to the chefs from its restaurant business to dish out new and
tasty combinations of existing delicacies. They created 16 different varieties inspired from
regular snacks such as potato chips, khakra and pakodas.

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Chips come in experimental flavours such as bindas masti chaas, chatkila nimbu achar and
tandoori paneer tikka. Yet another product launched is "Mad Angles", which according to the
company, is inspired by the Gujarati snack khakra and comes in tomato and chilli flavours.

The company has set up a completely new unit to manufacture Bingo, at its existing facility in
Haridwar. But that's not all. To make sure the consumers are informed of their choices, the
company has launched not one or two but five, 30-second commercials at the same time.

Thus, apart from what the flamingo has and lacks, a certain prof Sunder Raman talks about tangy
lemon pickle and chips between Tamil-speaking lessons. Similarly, a spoof of tele-marketing ads
dubbed in Hindi - complete with staccato voice and pretentious excitement about the product -
talks about Mad Angles; two friends get confused between five liars and the company's "Live
Wires"; and a CBI inspector clarifies the difference between the criminal Zango and Bingo
Potato wafers.

All this for better brand recall. "We are trying to play with similar sounding words to get the
brand name Bingo to register in consumers' minds," says Ravi Naware, chief executive, foods
division, ITC.

The commercials were created by O&M, which was selected by ITC after the company called for
a pitch in June last year. "This being the first campaign for the product, we have focused on the
products and the brand name to aid recognition. Also our tag line emphasises that we have many
combinations to offer," says Malvika Mehra, senior creative director, O&M, who wrote the
creatives along with colleague and senior creative director Amit Akali.

The advertisements were then shot by Rajesh Krishnan of Foot Candle on specially created sets
in Mumbai and a bungalow in Alibaug. Thereafter, the company has left no stone unturned to
make sure it reaches to its audience.

Since the company's target audience is people in the age group of 20-35, the company began
with Internet. It created a website www.bingeonbingo.com, which has free offers, games,
downloads and even mobile games. The site has been advertised with banners on websites such
as Yahoo, rediff and Sify. It's betting big on television, too.

The company has booked 10 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. Meanwhile, the

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company's radio commercials can be heard between 8 and 10 a.m. and between 6 and 8 p.m. as
research revealed that most youngsters travel during these hours and listen to the radio then.

About 20 spots A day have been booked on channels such as Radio One and Radio Mirchi. The
company has not left out the print media. To familiarise consumers with its products, the
company plans to advertise in most leading national dailies.

That's not all. In top 30 cities, over 1,000 outdoor hoardings have been booked to carry images of
the product. Like Frito-Lay, ITC, too, has designed a merchandise rack for its products. The
company plans to distribute this to 500-600 thousand retail shops to ensure visibility at the point
of sale.

While this campaign will run for eight more weeks, ITC is already working on another campaign
for mid-May. In its next campaign, the company wants to communicate the character and
qualities of its brand to develop its personality.

Pepsis Lay looses out

to ITCs Bingo in
Future Bazaar chains.
June 8th, 2007.

Kishore Biyani owned Big Bazaar

and Food Bazaar retail chains, part of
the Future Group, which have stopped
stocking PepsiCo owned Frito Lays
wafers and other snack products, on
account of margin disputes, have now been replaced by ITCs Bingo snack products, report
PTI.

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Although, discussions to sort out margin related issues between Frito Lay and the Future group
are believed to be in progress, none of the Lays products are available at any of the 57 Big
Bazaar and 70 Food Bazaar stores.

To make the matters worse for Frito Lay, the Future group has also introduced snacks in its
private label called Tasty Treat.

As reported earlier, the problem appears to have arisen on account of regular discount offers on
Lay products given by the retailer, which was not taken kindly by small kirana merchants, who
account for bulk of brands revenues. Frito Lay is also said to be not inclined to increase the
margins of the Future group, to compensate for discounts given on their products.

Bingo, according to knowledgeable sources, has become the brand of choice as PepsiCo is
believed to have asked for a reduction of 5% in margin from 25% to 20%.

In order to garner a decent share of the wafers market, which is dominated by the MNC brand,
apart from a high voltage advertising campaign, ITC is offering about 5% higher margin than
Frito Lay.

Tags: Kishore Biyani (Future Group)

BINGO: SHAKEUP IN SNACKS SEGMENT

Published on Thu, May 31, 2007 at 13:29 | Updated at Thu, Jun 07, 2007 at 16:37 | Source : Moneycontrol.com

Colas, airlines, retailers - their rivalry has become legendary. Joining that list are those pure
impulse buys - the snack brands. The battle is between Pepsico Frito Lay's Kurkure and Lays that
dominate the Rs 2,000 crore branded snack market and challenger, Bingo from ITC Foods. Right
now, they are slugging it out for a shelf near you.

ITC Foods was counting on Lays and Kurkure not being around, when it entered the Food
Bazaar chain. While backend sourcing tie-ups between the two may have sweetened the
relationship, the bottomline at this retailer is Bingo, which is what you see most when you look
for salted snacks. It's not just here that Bingo has struck at the small shops, to whom it's offering

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a margin that's 4% to 5% higher than what Frito Lays is paying. Not just that, if the display is
better, they get paid even more. ITC Food's largeses is largely to catch up with Frito Lay's
national reach of 8 lakh outlets.

So, that's distribution but what about the product and pricing? Well, the current No.1, Frito Lays
has been lauded for a round pricing strategy, slow but steady taste innovations and the big hit -
the 'Made in and for India', Kurkure. After two-years of homework, ITC's offerings are priced at
par with Frito's and the USP is as many as 16 variants in one go. The idea to get the consumer to
take that first bite.

So, while Bingo is using a high-decibel launch campaign, Frito Lay's new strategy is to get
personal with consumers. Through its just launched chaitime contest, it is inviting recipes that
use Kurkure. 25 winners along with their families will make it across to 2.5 crore packs of
Kukure. Supported by outdoor promotion, the promotion hopes to drive volumes and break the
barrier of seasonal demand.

For now, this is how the players stack up in the branded snack narket. Pepsi's Frito Lays leads
the pack, followed by Haldiram. ITC Foods hopes to capture a quarter of that within the next
four years. But Lays will also have to take distributor margins to a new level, if it wants to
maintain its 50% share of the market. It's in negotiations with Food Bazaar and Kurkure could
make a comeback in the next 3 to 4 months.

Molshree Vaid.

WITH BINGO NOTHING WAS PLANNED

Financial Express, Oct 09, 2007

The launch of Bingo represents ITC Foods fifth major line of business after the highlysuccessful
staples, biscuits, ready-to-eat and confectionery products. In just over six months(introduced in
the market in March 2007) Bingo has become a case study for FMCG product launches. It
demolishes many myths. With this launch, ITC Foods ended up blowing 30-40% of its media
budget on new media campaignssomething unheard of in a market where the Internet is used

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mainly for lead generation and rarely, if ever, for brand-building. In an exclusive interview to
FEs Radhika Sachdev, Ravi Naware, divisional chief executive (foods) ITC, shares his
companys gameplan:

Whats your experienceis the digital media more effective than conventional advertising
planks? What metrics do you employ in measuring the impact of such tools?

The metrics obviously would be the number of hits/eyeballs on the portal. We did choose the
unconventional way and spent nearly 40% of our media budget on digital media, because we felt
this would be the best way to connect with our market. In a way, we did break out of the mould.
We used digital media for brand building, which is not what most Indian companies do with this
media.

In any case, in the initial few months of a launch of an FMCG product, you do end up spending
as much as 80%-100% of your turnover on media purchase. Thats indeed necessary as there
could be 300-plus ads hitting consumers every day! In this clutter, we wanted to be dramatically
different.

Experts contend that the biggest contributor to Bingos scorching pace of growth is its
Indianised flavours. How did you crack the complex Indian palate?

Two things were important here. One, consumer insight, which we invested heavily in. We put a
lot of resources on finding out what tickled the Indian consumers taste bud, what turned him on
etc. The second is the manner in which you launch your product, that is the
communication/execution part. The distribution strategy also matters a lot in this game.

In our case, since we have a strong exposure to the hospitality sector, we put a whole team of
ITC chefs in place to craft new flavours for this category. During the research, we figured that
the best way to approach our consumers would be to tempt them with flavours that are exotic,
but not strange. They should be somewhat different from what is currently available in the

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market, but not fundamentally so. The process got kicked off two years ago and we spent a few
hundred crores on this exercise, including plant and equipment.

We followed this up with a strong distribution strategy. Our retailer network is probably the
strongest in the country. We are present in 100 markets and over the next one year, we plan to
expand to about 300 more.

Also, we evolved a completely new and modern merchandising solution for this launch. Our
retailers are happy with the attractive stands and other display material for Bingo. In the end, our
communication strategy with a heavy dose of humour has also been different and daring, which
struck a chord with our target customer.

And who is this target customer?

To be honest, anyone from 10 to 60 years of age. But to establish a new brand you have to
position it somewhere; so we decided to target it at the young Indian consumer. This comes out
very strong in our campaigns.

How did you hit upon a brand name like Bingo? The entire rangeLive Wires, Mad
Angles and Tedhe Medhe is a little hatke

That was precisely what we had aimed for. We had some terrific flavours and we wanted to go
the whole hog in connecting with the young consumers. Mad Angles and Tedhe Medhe are hot,
intriguing names. These names, we thought, would resound with todays youth and that hunch
has turned out to be true.

Any specific challenges you faced while foraying into a new category, knowing that you
would be pitted against formidable competition?

One of the biggest challenges we faced was playing in a pure impulse purchase category. From
the beginning, we knew we would have to make our product really stand out in the clutter. Also,
its a category where you have to deliver very convincingly on the promise made, as soon as a
packet is opened.

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How fast the salted finger is snacks market growing in India? And whats Bingos share in
this market?

The total market size could be to the tune of Rs 4,000 crore, of which Rs 2,000 would be
organized, growing at 25% per annum. In the market that we are in, we could be holding
anything between 15%-50% share at various geographies. And the unorganized sector could be
growing faster than the organized sector. Every time I walk down a street, I spot a new chaat-
papriwala doing brisk business.

Product analysts say you took customization to the limit with Bingo. How wise is the move to
keep so many SKUs (stock keeping units)?

We came out with 16 variants (priced at Rs 5, Rs 10 and Rs 20 a pack). A good majority of these
are region-inspired. So we have mustard for east India and paneer tikka for the north Indian
market. But we do have some generic national flavors, such as premium salt, tomato and chilly
formats, which go everywhere.

You had strategically timed the launch of Bingo to coincide with the Cricket World Cup.
India, as we know, performed nowhere near expectation. How important is the time factor
in the launch of a new food product?

As product launches go, wherever and whenever there is a good opportunity, marketers make the
best use of it. With Bingo also, nothing was planned. It was indeed a happy coincidence that
when we were introducing these products, the World Cup was on. So we made the most of that
opportunity. I am sure, had something else been happening, we would have timed our launch to
that event. As marketers, we just plough whatever terrain we are presented with.

So far, which is the most successful line of products for ITC Foods staples, biscuits, ready-to-
eat, confectionery or salted finger snacks?

Page | 25
Although exact figures are difficult to guess, the atta segment contributes as much as 35% to the
overall sales, confectionary 15% and the rest make up for the balance. Thankfully, all our
product segments are going great guns at the moment.

Finally, please crack this mystery code for us. What does Bingo Tick Tock Boing! mean?

You would have heard it on an FM radio channel. Its an interactive game, wherein before a
buzzer gets sounded, if you say Bingo Tick Tock Boing! you win a pot of money! Play it, its
loads of fun! This game has attracted high participation (running into a few million) in Delhi and
Mumbai and now we are running it in Bangalore.

RESEARCH METHODOLOGY

RESEARCH DESIGN AND METHODOLOGY

Research design is the basic framework which provides guidelines for the rest of research
process. It specifies the methods for data collection and data analysis .In this research project the
survey method of data collection is used, to be more specific questionnaire method. The size is
50 Respondents in the sample size were asked to fill the questionnaires to gather the data.

Sampling Method:

Page | 26
 Sampling has been done through Random Sampling Method and the sample size of
50 has been recognized from Navi Mumbai region. The in-depth interviews were
conducted with the consumers of Bingo who willingly cooperated.

Research Instrument:

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

Data Analysis Method:

The data analysis of this research was represented on qualitative as well as quantitative
manner. Application packages like Office XP (Microsoft Word, Microsoft Excel) and
SPSS were used

DATA COLLECTION /SAMPLE SIZE

Data Collection:

a. Primary Data;
Questionnaires for in-depth discussions with various respondents to be interviewed
during primary survey were designed during this phase. List of contacts were also
prepared during this phase. This involved in-depth face-to- face discussions using semi-
structured questionnaires with various respondents.

Pilot field survey

Page | 27
 Pilot field survey was conducted with the intention of testing the validity of the
questionnaires for fulfilling the objectives to the study. The questionnaires and the list of
contacts were modified based on responses of pilot field survey.

Detailed field survey

Detailed field survey was launched simultaneously at various pre-determined centers;

information was collected through face-to-face interviews with respondents using semi-
structured questionnaires. Questionnaires were also sent through mail and responses were
collected.

b. Secondary Data:
Taken data from various magazines, Newspaper and other prominent source of
information collected from different websites and search engines

DATA ANALYSIS

Drawing Of Inferences Through Statistical Analysis

In order to extract the meaningful information from the data collected an analysis of data is done
using pie charts, bar graphs etc

Page | 28
Q1. What do you like about BINGO?

Page | 29
 Driving Factor For Bingo
35

30

25

20

33
15 Score

10
16 15
13
5
7
5
0

Interpretation

Taste is the major driving factor for Bingo since it has scored highest ie.33 points

Q2. Which flavors you like the most?

Page | 30
 Most Preffered Flavors

6 12 Masala potato chip

9
14 salted potato chip

25 Tomato potato chip

16 Chatkila nimbu achar

8 Tandoori paneer tikka

12
Mad angles
Tedhe medhe
Livewires

Interpretation

The above table and pie chart shows the responses of the people. It is clear that Bingos Mad
Angles dominates the market for Bingo due to its creative and unique positioning. The second
spot is Tomato potato chips. Third most popular format of Bingo is Salted potato ships andss so
on

Q3. How often you have Bingo?

Page | 31
 Frequency of having Bingo

35

30

25

20
No of respondants
15

10

0
Once Twice Thrice Everyday

Interpretation

The above graph states that not many consumers of bingo have it regularly.

Page | 32
Q4.Overall, how satisfied you are with Bingo?

Consumer Satisfaction

unsatisfied 7

satisfied 34 No of respondants

Very satisfied 9

0 10 20 30 40

Interpretation

Above chart shows that some consumers of Bingo are very satisfied while most of them ie: 34
out of 50 are just satisfied whereas 7 of them are not satisfied.

Q5. How likely are you to recommend Bingo to others?

Page | 33
 2 Definitely will
6 6
14 22 Probably will
Not sure
Probably will not
Definitely will not

Interpretation

From the above pie chart it is clear that 6 people will definitely recommend Bingo, these
consumers are those who are completely satisfied and major respondents may recommend
probably and 2 unsatisfied consumers will definitely not recommend Bingo.

Page | 34
Q6. If Bingo is not available which of the following will you prefer?

Preffered Substitutes
35

30

25

20

15 Score

10

Interpretation

In the above graph we can see that Lays is the most popular brand among people followed by
Kurkure. Next is Haldirams Namkeens. The least popular brand appears to be Pringles. It may
be because 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 it a little more
expensive than Indian snacks.

Q.7. Compared to other snacks(such as kurkure, lays, Pringles uncle chips, haldiram etc) that are
available, would you say that Bingo is?

Page | 35
 Comparision with other Brands
1 2
8

Much better
15
Somewhat better
About the same
Somewhat worse
Much worse

23

Interpretation

The above pie chart shows that 23 out of 50 respondents believe that Bingo is same as other
snacks hence such consumers expect something new from the snacks industry.

Q.8. How much do you spend weekly on snacks?

Page | 36
 Weekly spending on snacks

More than Rs.100

Rs.50-100

No of respondants

Rs.20-50

Below Rs.20

0 5 10 15 20 25

Interpretation

From the above bar chart it can be seen that people have started spending more on snacks 25 out
50 people spend more than Rs 100 on snacks. While there are even people who spend even less
than Rs 20 on snacks.

Page | 37
Q9. How did you first discover Bingo?

5 1

5 Advertising
WoM
PoP
Other

39

Interpretation

From the above pie chart its clear that advertisements have taken the attention of most people
towards Bingo. Hence its clear that spending on advertisements had a positive result to the
popularity of Bingo.

Page | 38
Q10. Which media took your attention to a Bingo Ad?

Score

50

40

30
45 Score
20 32
10
5 2
0
Print Radio Television WoM

Interpretation

According to Bar chart Television ads has taken most of the public attention. This may be due to
different types of catchy advertisements which has created Buzz in the market.

Page | 39
Q11. How did the advertisement of Bingo affect you?

Effect Of Advertisement

9 7
Recall
Positive Impression
16 18
Interest
Desire to purchase

Interpretation

The above diagram shows that Bingo ads were successful in creating positive impression in
market for most of people it also created interest for some people and 9 out 50 people also had a
desire to purchase Bingo after looking at ads.

Page | 40
SPSS Analysis

Discriminant

To screen the perception of consumers based on the following

independent variables:

1. Price
2. Quality
3. Brand
Null Hypothesis Out of the sample size of 20, 12 are favourable
perception and 8 are unfavourable perception

Alternate hypothesis the classification is incorrect.

Notes

Output Created 14-FEB-2010 21:17:47

Comments
Input Data C:\DOCUME~1\xyz\Desktop\NEHAR
E~1\NEWFOL~1\latest.sav
Filter <none>
Weight <none>
Split File <none>
N of Rows in
Working Data File 20
Missing Value Definition of User-defined missing values are
Handling Missing treated as missing in the analysis
phase.
Cases Used
In the analysis phase, cases with no
user- or system-missing values for
any predictor variable are used.
Cases with user-, system-missing, or
out-of-range values for the grouping
variable are always excluded.

Page | 41
Syntax
DISCRIMINANT
/GROUPS=cust_percp(1 2)
/VARIABLES=price quality brand
/ANALYSIS ALL /PRIORS EQUAL
/STATISTICS=UNIVF RAW TABLE
/CLASSIFY=NONMISSING POOLED
.

Resources Elapsed Time 0:00:00.02

Analysis Case Processing Summary

Unweighted Cases N Percent

Valid 20 100.0
Excluded Missing or out-of-
range group codes 0 .0
At least one
missing
0 .0
discriminating
variable
Both missing or
out-of-range group
codes and at least
0 .0
one missing
discriminating
variable
Total 0 .0
Total 20 100.0

Group Statistics

Valid N (listwise)
cust_perc
p Unweighted Weighted
fav price 15 15.000
quality 15 15.000
brand 15 15.000
unfav price 5 5.000
quality 5 5.000
brand 5 5.000
Total price 20 20.000
quality 20 20.000
brand 20 20.000

Tests of Equality of Group Means

Wilks'
Lambda F df1 df2 Sig.
price .962 .712 1 18 .410
quality .837 3.516 1 18 .077

Page | 42
 brand .970 .563 1 18 .463

INTERPRETATION:

This table indicates the significance of each and every variable together.

The significance of each of the variable is less than 0.5. Hence it is a good fit.

Analysis 1

Summary of Canonical Discriminant Functions

Eigenvalues

Canonical
Function Eigenvalue % of Variance Cumulative % Correlation
1 .728(a) 100.0 100.0 .649
a First 1 canonical discriminant functions were used in the analysis.
INTERPRETATION:

The significance of canonical correlation is greater than 0.5, hence its significant.

So there is no need of including more variables.

Thus it tells that the selection of variables to categorize the respondents is correct. i.e. the above
mentioned independent variables can differentiate the respondents.

Wilks' Lambda

Wilks'
Test of Function(s) Lambda Chi-square df Sig.
1 .579 9.025 3 .029

INTERPRETATION:

If the significance is greater than 0.5 the variables correlate/overlap each other and if its less than 0.5
the independent variables are different from each other. In this case, significance is only .001, which
shows that the variables have high discriminating power as its very close to zero.

Standardized Canonical Discriminant Function Coefficients

Page | 43
 Function
1
price -.942
quality 3.106
brand -1.879

INTERPRETATION:

This table shows the importance of a variable for a particular study, in this case Quality is more
important to determine the loyalty of the customers.

Structure Matrix

Function
1
quality .518
price .233
brand .207
Pooled within-groups correlations between discriminating variables and standardized canonical discriminant functions
Variables ordered by absolute size of correlation within function.

Canonical Discriminant Function Coefficients

Function
1
price -1.231
quality 4.511
brand -2.729
(Constant) -1.394
Unstandardized coefficients
INTERPRETATION:

This table forms an equation so as to find out the level of risk involved in the study.

If the value is positive it denotes that the respondent is at low risk and vice-versa.

Y= -1.394 - 1.231 (Price) + 4.511(Quality) - 2.729 (Brand)

Eg.: Price Rs 14

Quality 8 out of 10 (rating)

Brand 6 out of 10 (rating)

Y= -1.394 - 1.231 (14) + 4.511(8) - 2.729 (6)

= -1.394 - 17.23 + 35.09 16.37

Page | 44
 = 0.096

In this case the centroid is 0 and the value of Y is positive (0.096).

Hence the customer perception is favourable.

Functions at Group Centroids

Function
cust_percp 1
fav -.467
unfav 1.402
Unstandardized canonical discriminant functions evaluated at group means

Prior Probabilities for Groups

Cases
Used in
cust_percp Prior Analysis
Wei
Unweighte ghte
d d
fav 15.0
.500 15
00
unfav 5.00
.500 5
0
Total 20.0
1.000 20
00

Classification Results (a)

Predicted Group
Membership
cust_perc
p fav unfav Total
Original Count fav 14 1 15
unfav 2 3 5
% fav 93.3 6.7 100.0
unfav 40.0 60.0 100.0
a 85.0% of original grouped cases correctly classified.

INTERPRETATION:

Page | 45
This table shows the final result wherein, out of 15 favourable respondents, 1 is unfavourable and out of
5 unfavourable respondents 2 are favourable, hence there is approx. 85% accuracy in the classification
of groups.

STRENGTH AND LIMITATIONS OF THE STUDY

Strength Limitations:

Adequate efforts have been taken to accomplish the research according to the objectives. But as
the research team is consisted of only one member therefore it was not possible to cover more
additional areas, which would obviously give better result.

Cost limitations:

The in-depth interview should be conducted with the help of experience moderator but it was
very cost sensitive. So, the interview was taken by self which might crept few errors on the
research.

Time Limitation:

The type of the study required a detail interview of both man and women residing at homes.
Thereby a tremendous difficulty was faced in getting access to different houses, especially in the
absence of some male and female during daytime who are service holders. Again these people
usually fallback from different offices or businesses after dusk and enjoy their times at home, so
taking interview during that time became an irritation for them. On the other hand, maximum of
the female who were housewives residing at home were found busy after 11 am with their daily
routine jobs like cooking. Therefore a very limited period of day was found suitable for
conducting the survey. Also, the interview was conducted only in the Navi Mumbai city because
of the time limits

Page | 46
 FINDINGS AND SUGGESTION
1) According to the survey conducted Taste is the major driving factor for which people like to
eat Bingo.

2) It is also been identified through the responses of the people that Bingos Mad Angles
dominates the market for Bingo due to its creative and unique positioning. The second spot
is Tomato potato chips. Third most popular format of Bingo is Salted potato chips and then
other flavors.

3) Through survey its also been known that most consumers of bingo are satisfied some are
very satisfied while very few are not satisfied and most of satisfied consumers will
recommend Bingo to others.

4) In other brands Lays is identified the most popular brand among people followed by
Kurkure. Next is Haldirams Namkeens. The least popular brand appears to be Pringles. It
may be because 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 it
a little more expensive than Indian snacks. Bingos market is increasing day by day and is
eating up the market of popular brand like Lays.

Page | 47
5) It is also identified that people have started spending more on snacks 25 out 50 people spend
more than Rs 100 on snacks. While there are even people who spend even less than Rs 20 on
snacks. But overall spending by people on snacks is increasing and thereby increasing its
demand.

6) Advertisements have taken the attention of most people towards Bingo. Hence its clear that
spending on advertisements had a positive result to the popularity of Bingo of which
Television ads has taken most of the public attention. This may be due to different types of
catchy advertisements which has created Buzz in the market.

7) Bingo ads were successful in creating positive impression in market for most of people it
also created interest for some people and to some a desire to purchase Bingo after looking at
ads. Bingo ads have created an urge in people to purchase so company must invest more on
advertising to capture more market share.

Page | 48
 CONCLUSION
After conducting the survey it can be said that ever since its launch, Bingo as a preferred
brand is on a rise. Although Lays is the most popular brand Bingo has carved a niche for
itself. This is due to ITCs powerful and creative marketing and branding strategies which
has created a buzz in market.

Bingo is in the growth stage of its life cycle .It has been taking the self space of popular
brands like Frito Lays due to its strong distribution and marketing strategies. Given more
time it is capable of capturing a larger market share and giving tough competition to other
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 seem to be satisfied with Bingo.

The purpose of the research was to analyze the consumer preference for Bingo in Navi
Mumbai region which has been achieved to greater extent even after considering certain
money and time constraints

Page | 49
 BIBLOGRAPHY
www.allbusiness.com

www.bingeonbingo.com

www.financialexpress.com

www.fidelity.co.in

www.itcportal.com

www.indiaretailbiz.com

Business Standard

Financial Express

Page | 50
Page | 51
 QUESTIONNAIRE
Name: _______________________ Age : ________

Signature: ___________________

General Instructions:

1. Answer all questions.

2. Indicate your answer by marking a tick against an appropriate option.
3. Mark only one option in all questions.

Q1. Do you like to eat snacks?

Yes ___

No ___

Q2. Have you heard of ITCs BINGO?

Yes ___

No ___

Q3. Have you ever tried BINGO?

Yes ___

No ___

Q4. What do you like about BINGO?

Taste ___

Variety ___

Quality ___

Price ___

Page | 52
 Quantity ___

Packaging ___

Q5. Which flavour do you like the most?

1. Masala Potato Chip ___

2. Salted Potato Chip ___
3. Tomato Potato Chip ___
4. Chatkila Nimbu Achar Potato Chip ___
5. Tandoori Paneer Tikka Potato Chip ___
6. Mad Angles ___
7. Tedhe Medhe ___
8. Livewires ___

Q6. How often do you have BINGO?

Once a week or more often ___

Everyday ___

2 to 3 times a month ___

Q7. Overall, how satisfied are you with BINGO?

Very satisfied ___ Unsatisfied ___

Somewhat satisfied ___

Q8. How likely are you to recommend BINGO to others?

Definitely will recommend ___

Probably will recommend ___

Not sure ___

Probably will not recommend ___

Page | 53
 Definitely will not recommend ___

Q9. Before switching on to BINGO, which snack did you prefer?

Lays _____

Kurkure _____

Uncle chips _____

Pringles _____

Haldiram Namkeens _____

Q10. Compared to other snacks (such as Kurkure, Lays, Pringles ,Uncle chips ,Haldiram, etc.)
that are available, would you say that BINGO is?

Much better ___

Somewhat Better ___

About the same ___

Somewhat Worse ___

Much Worse ___

Q11. How much do you spend weekly on snacks?

Below Rs. 50 ___

Rs. 50-100 ___

More than Rs. 100 ___

Page | 54
Q12. How did you first discover BINGO?

Advertising- T.V, Newspaper, Radio ___

Word Of Mouth ___

Point of Purchase ___

Other ___

Q13. Which media took your attention to a Bingo Ad?

Print ___

Radio ___

Television ___

Word of mouth ___

Q14. How did the advertisement of Bingo affect you?

Recall ___

Positive impression ___

Interest ___

Desire to purchase/explore ___

Q15. Did the advertisement urge you to purchase Bingo?

Yes ___ No ___

Page | 55
Page | 56