Branded Snacks

Pragalbha Kapoor
09BSDDU0053
 Introduction
• A snack food is seen in Western culture as a type of
food not meant to be eaten as a main meal of the
day – breakfast, lunch, or dinner – but rather to
assuage a person's hunger between these meals
• Snack foods are typically designed to be portable,
quick and satisfying. Processed snack foods are
designed to be less perishable, more durable, and
more appealing than prepared foods. They often
contain 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
9%
8%

45%

Parle
Britannia
ITC Sunfeast
Others

38%

• Source: Economic times (6 dec. 2010)

• Wafers

23%

45%

Frito-Lay
ITC Bingo
Parle Hippo
Others
16%

16%
• Namkeens

24%

40%

Haldiram
Frito-Lay
SM Foods
Others

16%

20%
Strategies of Top Three Players In Each
category
 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 a large market.
• Also they focus on providing good quality products
at the same time, which means it uses the value
pricing method.
• The extensive distribution network, built over the
years, is a major strength for Parle products.
 Britannia
• A strong quality of the product and customer
satisfaction:
• A growing relationship with customer and
customer retention
• A growing emphasis on global thinking and
local marketing
 ITC Sunfeast
• Sunfeast using heavy promotion
• Sunfeast also uses lot of below the line
promotions for brand building. It sponsors
Sunfeast Open, a recent initiative aiming at the
school kids by providing them an opportunity
to enhance creativity through painting
competitions, “Hara Bano” campaign which set
a world record in planting maximum number
of saplings etc.
 Wafers
Frito-lay
• Multinational snack maker Frito-Lay has
indianised its potato chips brand Lay’s
• They have recently gone for customer
participation. 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 purchases and
Bingo had the advantage of the ITC parentage that encouraged
consumers 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 local flavors and
the key differentiator was the Localized flavors. 

• Distribution strength: the most critical success factor of Bingo is the

distribution strength. . Go to any supermarket or kirana store, Bingo is
highly visible. In India there is no company that can match the
distribution strength of ITC and this has helped this new launch very
much in terms of Shelf Space and retailer support.
 Parle Hippo
• Hippo calls itself “Delicious Baked Munchies ". This baked wheat
based munchy is neither a potato chips nor a biscuit, 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 a story.
The story is based on the premise that ' Hunger is the root 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 contains interesting information and
one-liners which takes the brand-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 for
both dealers and consumers.
 Frito-lay (Lehar namkeens)
• On the first they have positioned their
products as “TAAZA” namkeen.
• They use qualitative packaging technique that
helps 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 consumer
preference for value-added health and wellness
snacks
• There is shift in thinking about the snacks that it
should be healthy with good taste. Now days
companies involved in this sector are providing and
evolving products with good taste and health. They
are positioning their products as healthy products
and having nutritious value for their children, it
doesn’t affect the health.