About Snack Industry Large and diverse the snacks industry dominate by unorganized sector. Industry growth rate 10% for the last 3year. Branded segment is much smaller at 2200 cr. In India estimated to be worth $3 billion. Frito lays enjoy a share of 45%, haldiram 27%, ITC 16%.snack According to survey almost 1000 snack and 300 types of savories are sold in India.
Company Profile India largest manufacturer of biscuits and confectioneries for almost of 80 year. In 1929 a small company by the name of Parle product emerged in British dominated India. Smaller factory was set up in suburbs of Mumbai , to manufacture of sweet& toffees. Since 1971 Parle has 40 % share of total biscuit market ,15% share of total confectionery market in India, Parle has grown to become multi million dollar company .
Availability of Product Kirana/ general store Tea shops Railway stations Place where the culture program of village being organized. STP Segment Health conscious people.
Target Group All age groups lower , middle class people
Positioning Wafer for people who want to be healthy
Market Structure Brand and their Offering Market Share Brand extension Brand extension is marketing strategy in which a firm marketing a product with a well developed image uses the same brand name in a different product category.
Health and taste perception
High on taste Lays Monaco smart chips Bingo hippo Aliva
unhealthy healthy
low on taste
SWOT Strength Excellent branding and advertising Excellent distribution and availability Celebrity brand ambassador Low fat chips. Better understanding of consumer psychology
Contd Opportunities Estimated annual growth of 20%. Changing consumer preference. More brand recognition
Contd Weakness Many competitor in this segment Not too many flavors
Contd Threats Entry of various new entrants ITC etc. Local bakery product. Increase in distribution on cost. Hike in cost of production due to increase in raw material cost
Questions Comment on the celebrity endorsement done by Parle Monaco. Would the proposed brand positioning give a competitive edge to the company?