23-08-2012, 03:13 PM
SNAKE INDUSTRY IN INDIA
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OVERVIEW OF SNAKE INDUSTRY IN INDIA
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 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.
CONSUMER BEHAVIOR
The job of marketer is to meet and satisfy target customer’s
requirements and desires. “Knowing customer" is not a simple task.
Understanding the buying behavior of the target market for the
product is the essential task of the marketing plan. The job of the
marketers is to “think customer” and to guide the company into
developing offers, which are meaningful and attractive to target
customers and creating solutions that deliver satisfaction to the
customers, profits to customer and benefits to the stakeholders.
Marketers must study the customer taste, preferences, wants,
shopping and buying behavior because such study provides the clues
for developing the new products, price, product changes, messages
and other marketing mix elements.
Indian consumer buying behavior analysis
Before nineties, most of Indians were in Picking or impulsive buying
behavior regarding the snack industry, as there was not many choices
around. I recall that during my childhood potato chips was considered
as Fasting Food( people used to eat during the day long fast, as per
Hindu tradition). After economic liberalization, multinational companies
such as Pepsi Co and Coke have entered into Indian FMCG market and
changed the equation. The major task to market items as potato chips
is to bring Consumer from Picking to Variety seeking and then to
Problem solving behavior, to change fasting Food to Fast Food
MARKET UNIVERSE
Market universe defines the targeted audience for the product. It is very
essential for marketer to target specified audience/consumers for the product
to keep the product away from picking buying behavior. For this product
should be positioned as brand differentiator to it’s competitors. Product
should bring some kind of functional/technical/others advantage to consumer
then it’s competitors.
In our example, following are the attributes that have impact on
consumer decision-making process, while buying snack product. ITC and
Pepsi Co have to study each of these attributes
COMPANY PROFILE
Snack foods are impulse purchase products, and there is an element of
indulgence associated with them. It does not figure very high on the
shopping list. A consumer buys it only if it catches his eye at the outlet
or is accompanied by a child who finds potato chips a fun snack. So
leading players have stressed on attractive packaging and promotions
targeted at children to increase consumption. As these products are
general fun eat, brand loyalties are not strong and consumers look for
novelty and new flavors. There is no notable difference in consumption
pattern across various age groups.
One of the major issues while defining taste parameter in India is its
huge geographical spread and culture diversity. Taste varies widely
across the regions. For instance in south India, banana chips are
extremely popular which do not find many acceptances in other parts
of the country. In north, Paaprichaat is very successful whereas in
Mumbai, Bata Vada/Vada Pao has been a runaway success.
Snacks like Chips, Namkeens are others are generally preferred for the
daily consumption whereas fun-foods like Cheeseballs and Twistys are
sold more in schools, Colleges, Railway Platforms and Movie Theatres.
Kids generally prefer Fun-Foods whereas all age groups generally
prefer Wafers and other snacks. Snacks are mostly consumed during
evening time.
CONSUMER PROFILE
The Indian consumers are noted for the high degree of value
orientation. Such orientation to value has labeled Indians as one of
the most discerning consumers in the world. Even, luxury brands have
to design a unique pricing strategy in order to get a foothold in the
Indian market.
Indian consumers have a high degree of family orientation. This
orientation in fact, extends to the extended family and friends as well.
Brands with identities that support family values tend to be popular
and accepted easily in the Indian market.
Indian consumers are also associated with values of nurturing, care
and affection. These values are far more dominant that values of
ambition and achievement. Product which communicate feelings and
emotions gel with the Indian consumers.
MARKETING ENVIORNMENT : Pepsi Co
ABOUT PEPSICO INDIA
PepsiCo established it's business operations in India in 1989 and has
grown to become one of the country’s leading food and beverage
companies. One of the largest multinational investors in the country,
PepsiCo has established a business which aims to serve the long term
dynamic needs of consumers in India.
PepsiCo India and its partners have invested more than USD1 billion
since the company was established in the country. PepsiCo India
provides direct and indirect employment to 150,000 people including
suppliers and distributors
PepsiCo's food division Frito-Lay is the leader in the branded salty
snack market and all Frito-Lay's products are free of trans-fat and MSG.
It manufactures Lay's Potato Chips, Cheetos extruded snacks, Uncle
Chips and traditional snacks under the Kurkure and Lehar brands. The
company’ s high fiber breakfast cereal, Quaker Oats and low fat and
roasted snack options like Aliva enhance the healthful choices
available to consumers.