Documente Academic
Documente Profesional
Documente Cultură
BINGO
(A COMPARATIVE STUDY)
A Project Report submitted in partial fulfilment of the requirements for the awards of the degree of
STUDENTS DECLARATION
I here by declare that the Project Report conducted on
BINGO
Place:
ESHA GOEL
Date:
E. No.- 0271333907
CERTIFICATE
This is to certify that the Project Report on
BINGO
Contents
1. INTRODUCTION
1.1 General Introduction 1.2 Objectives of Project 1.3 Industry Profile of Food Processing Industry A) Indian Food Processing Industry B) Indian Snacks Industry: An Overview C) SWOT analysis of Indian Snacks Industry
CHAPTER.1
INTRODUCTION
1.2
1. To study the snacks industry as a part of food processing industry. 2. To study the company profile of ITC Ltd the makers of BINGO. 3. To study the trends in snacks industry. 4. To analyse and interpret the results of sample collected.
5. To determine the future course of action by ITC. 6. To find conclusions to our project.
A)
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.
Fruit & Vegetable processing (including freezing and dehydration) Grain Processing Processing of Fish (including canning and freezing)
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 in volume terms and 50% in value terms. However, though the organized sector is comparatively small, it is growing at a much faster pace
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 there is no particular time for snacks, normally they are consumed at teatime. The variety is almost mindboggling 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-formoney 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. 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.
Abundant availability of raw material Vast network of manufacturing facilities all over the country Vast domestic market Urbanisation
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
Threats
Affordability and cultural preferences of fresh food High inventory carrying cost High taxation High packaging cost Competition between national and regional players
CHAPTER.2
ITC LIMITED
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.
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. 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."
CHAPTER.3
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. 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, our aim was to find out the most popular flavour of Bingo among all the offerings. We began our analysis by dividing people into those who like to eat snacks and those who dont. We based our study on the survey of people who like to eat snacks. This survey was conducted in Delhi. To collect the data we designed a questionnaire.
To analyse the reason for the popularity of the most preferred snack. To know the satisfaction level of people who eat Bingo. To find out how much people spend on snacks weekly. To find out the preferences of people for different brands.
Our second objective is concerned with finding out which flavour of Bingo is most preferred.
Table showing the responses of people: Flavours Masala Potato chips Salted Potato chips Tomato Potato chips Chatkila Nimbu Achar Potato chips Tandoori Paneer Tikka Potato chips Mad Angles Tedhe Medhe Livewires Respondents (value) 3 1 3 1 3 22 1 2 Respondents (percentage) 8% 3% 8% 3% 8% 61% 3% 6%
3%
6%
8% 3% 8% 3% 8%
Masala Potato chips Salted Potato Chips Tomato Potato chips Chatkila Nimbu Achar Potato Chips Tandoori Paneer Tikka potato chips Mad Angels Tedhe Medhe
61%
Livewires
The above table and pie chart shows the responses of the people. It is clear that Bingos Mad Angles dominates the market for Bingo. The second spot is shared by two flavours equallyMasala potato chips and Tandoori Paneer Tikka potato chips. Third most popular format of Bingo is Livewires and the fourth spot is shared by Salted Potato Chips, Chatkila Nimbu Achar potato chips and Tedhe Medhe.
The third objective was to analyse the reasons for the popularity of the most preferred flavour. For this the respondents were asked what do they like most about Bingo. Following pie chart shows their responses.
5% 13%
8%
47%
16% 11%
From the above pie chart we can see that people like the taste of Bingo the most i.e. they like to eat Mad Angles Because of its unique format and flavour.
Fourth objective was to find out how much people are satisfied with Bingo. Following pie chart shows the satisfaction level of people:
unsatisfied 17%
The fifth objective was to find out how much people spend weekly on snacks.
From the above diagram it is clear that most people spend below Rs.50 on Snacks. And very small part of the sample spends more than Rs.100 on snacks weekly. Our sixth and last objective was to find out the preferences of people for different brands. Here, we aim to find out the most popular brand of snacks excluding Bingo.
14 12 10 No. of people 8 6 4 2 0
13 9 7 5 2
Snacks Brands
In the above graph we can see that Frito Lays is the most popular brand among people followed by Uncle Chips and 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.
16 people out of 36 people who like to eat snacks feel that as compared to other brands Bingo is much better. Other 12 feel that Bingo is somewhat better and 8 feel that Bingo is about the same as other brands. None feel that Bingo is somewhat worse or much worse than other brands.
When asked how often they eat Bingo 22 people said once a week or more often, 11 people said everyday and 3 people said 2-3 times a month.
BIBLOGRAPHY
SME rating agency of India ltd. www.allbusiness.com http://www.financialexpress.com/news/Just-munch-it/271873/0 www.itcportal.com