Marketing Strategies uncle chips - baixardoc

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Group 6- Sidharth Nikhra (32), Deepthi P (33), Mohit Paliwal (34), Swarnima Pandey (35), Kavita P (36)

Transcript of Marketing Strategies uncle chips - baixardoc

Group 6-

Sidharth Nikhra (32), Deepthi P (33), Mohit

Paliwal (34), Swarnima Pandey (35), Kavita P

(36)

Brand History

• Launched in 1992, Uncle Chipps was a pioneer in

branded potato chips in India.

• Market leader with 71% market share until 1998.

• Saw competition bring its market share down to 30-

35% by 2000.

• It was brought down to 0.95% by 2012.

• Originally owned by the Uncle Chipps Company Ltd, it was bought over by Frito-Lay, PepsiCo's snacks division in October 2000.

COMPETITIVE LANDSCAPE

• PepsiCo Inc enjoys 35.5% market share in Sweet and

Savoury Snacks category in 2012.

• Frito-Lay India maintained category leadership, boasting a

36.5% value share in 2012.

• In 2012 however value share decreased slightly due to the

strong competition from regional players.

• With many serious players in the market, the price-based

competition intensified and customer loyalty enjoyed by

the segment was eroded.

Geographies Categories Companies 200

8

200

9

201

0

201

1

201

2

201

3

India

Sweet and

Savoury Snacks

PepsiCo Inc 40.1 39.3 37.4 36.7 36.5 35.1

India

Sweet and

Savoury

Snacks

Haldiram Foods

International Ltd 23.0 24.2 24.1 24.1 23.7 23.5

India

Sweet and

Savoury

Snacks

Balaji Wafers Pvt

Ltd 7.0 7.2 7.5 7.9 8.3 8.8

India

Sweet and

Savoury

Snacks

ITC Group 6.6 6.7 7.2 6.8 6.6 6.9

Market Share

Brand Share

Brand Share- Uncle Chips

CONSUMER BEHAVIOUR

ANALYSIS

• Manufacturers are expected to launch new

products which are both healthy and tasty.

• Niche products like low-fat, sugar-free and

low-salt snacks are expected to gain

popularity.

• Consumers will eventually give more

importance to the ingredients used in

making the product.

• Demand is expected to come from rural areas,

which are still not saturated like the urban market.

• Growth will be mainly attributable to high sales from

snacks at lower price points priced between Rs5-10.

• Manufacturers will come up with innovative flavours

and shapes to drive sales, mainly targeting children.

Strengths 1) A strong brand name

2) Belongs to the world leader in savory snacks

3) Known to follow quality standards

Weaknesses 1) Low market share

2) Does not have a nationwide availability

3) Weak social media marketing

Opportunities 1) Product innovation

2) Capitalize on brand personality

3) Introduce new variants

4) Increase its online presence

Threats 1) Brands like Balaji Wafers, Parle Wafers, Lays, Yellow diamond

2) External changes like government taxes and policies

3) Easy product substitution

4) Lower cost competitors

SWOT

Objectives Current market share in the Wafers segment is 8.8%

i.e. approximately Rs. 602 crores, hence Uncle Chipps

needs to up its ante to compete with local brands as

well.

Product market expense needs a leverage in order to

promote the brand through advertisements

Consumer interaction needs an impetus mainly

through social and digital media as well as print

media

The youth of today needs to see Uncle Chipps in a

different light

Due to high recall value of the product, any

investment made in marketing will act as a long term

benefit.