02-10-2012, 10:46 AM
The Indian snacks market
the Indian snacks.doc (Size: 225.5 KB / Downloads: 50)
INTRODUCTION
The Indian snacks market is worth around US$ 3 billion .The “unorganized snacks market” is worth US$ 1.56 billion .Potato chips and potato-based items from 85 per cent of the Market. Haldirams and ITC are some of the leading players.Frito Lay, with a market share of 45 percent (US $550 million) dominates the market.
PepsiCo is also a dominant player in the snack food segment in India. PepsiCo's snack food company Frito-Lay is the leader in the branded potato chip market. It manufactures Lay's Potato Chips; Cheetos extruded snacks, Uncle Chips; traditional namkeen snacks under the Kurkure and Lehar brands; and Quaker Oats.
Launched in 1999, this perfect 'namkeen' snack, fully developed in India, has become the torch bearer of fun and lovable human quirks. It developed an even stronger identity through celebrity associations with Juhi Chawla [2003] and Kareena Kapoor [2008], well-known actors in Indian Cinema.
Named after the Hindi word for "crunchy", Kurkure is a cheeto-like snack and is the flagship of Frito Lay's Indian division. It is marketed by Hirani Industries Corp. (USA incorporated company) in Kenya. It is one of the most popular food products in India today. The snack comes in 4 flavors. They are Masala Munch (orange pack), Green Chutney Rajasthani Style (light green pack), Chilli Chatka (dark green pack) and Tamatar Hydrabadi Style (brown pack). There are two new flavors too. One is the Kurkure Xtreme Electric Nimbu and the other is Kurkure Xtreme Risky Chilli. A Special Edition flavour, Jaljhalo Hit has been released as a Pujo Special for Durga Puja, 2007. Snacks are of two types extruded & potato chips, Kurkure is the extruded snack item.
Product Strategy
Features
Building trust and connection by informing the consumers of the authentic ingredients that go into the product. Kurkure is a new age Namkeen and made of edible ingredients including rice meal, corn meal, gram meal, edible oil, seasonings, salt, spices and condiments and flavours. Its Snack Smart initiative to cut out trans-fat from its products by using rice bran oil which cuts saturated fat by 40 per cent. Kurkure has 40% less Saturated Fat, Zero Trans Fats and No Added MSG .All the raw materials used in Kurkure comply with the Prevention of Food Adulteration Act and Rules that govern the manufacture, distribution and sale of Kurkure. All ingredients are such that are used daily in all households today for preparation of various edible items. Kurkure is a very popular and easy making product. They are manufactured by extruding heated dough through a die that forms the particular shape. They may be ball-shaped, curly, straight, or irregularly shaped. In India, it was called "Kurkure". Most popular were the corn curl kurkure.
PACKAGING
Style and design matter a lot on the outcome and response of the product. ‘Kurkure’ as the product (inside the pack and outside wrapper) has much attractive and catchy colors style and design which attracts the customers alot.
Kurkure is available in the market in 3 different packing. Kurkure comes in the air tight packing and packing material of Kurkure is of high quality so that product will remain fresh and its taste keeps secure up to more than four months. Kurkure has different flavors in the market so the each flavor has its own unique packaging color combination according to its taste. Basic color combinations are in green and red colors which all are eye catching.
Kurkure is available to the consumer only in primary packing. No secondary packing is using. However they are delivered in container packing from production plant to shopkeepers or retailers, which carries 48 packs.
The"Kurkure Chai Time Achievers" campaign:
This was the first of its kind campaign in India, launched in May 2007 aiming at promoting versatile usage of Kurkure. Powered by an exciting commercial showcasing crazy consumers trying to grab the 'Kurkure frame' - their ticket to famedom, this campaign truly gives consumers a taste of Kurkure in the most innovative way!! Leading to replacement of Juhi on the Kurkure packs with pictures of their own and their near and dear ones, it gave the consumers chance to become celebrity overnight by printing their photographs and recipes on a million Kurkure packs. The company claims to have received an overwhelming response, with over 100,000 recipes pouring in, within just 6 weeks. For a brand holding out the reward of instant fame to its consumers, Kurkure has indeed delivered on its promise. Volumes shot by 20% in just one month. Sales have increased by 19% over last year.
Distribution Strategy
A manufacturing company manufactures products. It then needs to deliver the manufactured products to the consumers. Many times, the place of manufacturing and the place where the consumers require the products is very far away from each other. Kurkure has its three manufacturing locations - in Channo (Punjab), Kolkata and Pune but its customers are all over India. So, Kurkure needs to set up an efficient distribution system so that the products reach its consumers.
Kurkure is manufactured in in Channo (Punjab), Kolkata and Pune. From there it is distributed all over India and it is available at the local store near you. The distribution guys have to make sure that, every little "banya shop" on every little street of our extremely large country gets Kurkure snacks. And while the distribution guys do all this, they have to make sure they keep the costs under control.
This makes one think that the distribution guys do a whole lot of work. However, in practice what they do is, set up distribution channels.
Distribution Channel Adopted by Kurkure
Distribution is also one of the key parameters for expanding market share. Frito-Lays has the advantage of access to Pepsi's a formidable distribution network .Generally Companies are having their sales vehicles that are loaded on daily basis and are distributed to local retailers. Some companies appoint Distributors. Distributors have to give a proposal with a market research like storage facilities, infrastructure, and retail outlets in area, market leader, types of products available in the market etc. The Kurkure products are delivered to the retailer twice a week. The products are generally sent in Boxes on an average each box contains 80 packs of 30 gm or 30 packs of 150 gm.
Distributors are solely responsible for the sales in the particular area he is operating in. Every Distributor should have a specified number of minimum shops in his area. Distributors generally have small vans (rickshaws) and employ salesmen on commission basis who loads the products from the distributor’s storage and distributes it amongst the retailers. It services one-lakh retail counters across the country by employing a total strength of 300 sales personnel and distributors nationwide.