Distribution Strategy

Lays
Being first in the market through its acquisition of Uncle Chips,
Frito-lay already has a well-established network of distributors
and retailers pan-India.
The brand loyalty enjoyed by Lays was leveraged during the
launch of Kurkure, Cheetos and the recently launched Aliva
Frito-Lay has a distribution network of 30 CFAs and 2 RDCs
who service 800 distributors who sell to 4 lakhs retailers.
Lays has a reach of more than 1 million retail outlets
countrywide covering 100 towns. The Company, with its
manufacturing plants in Punjab and Pune, aims at investing 20
crores to extend distribution facilities to improve coverage

Bingo
ITC already had a well-established distribution network through its
cigarette and tobacco-related offerings which was leveraged in case of
Bingo.
Further, the company distributed 4 lakh racks across all retailers to
display the brand at all Points-of-sale.
Within 6 months, Bingo was available across 2,50,000 retailers across
the country.
A crucial alliance with Future group which lead to all future group retail
outlets like Big Bazaar, Food Bazaar stocking only ITCs Bingo

Pricing Strategy

Lays
The pricing strategy for Lays is consistent with other
competing players. As this market is driven by highimpulsive buyers of snack foods, there is very little
dichotomy in the pricing strategies of all major players.
Lays and Kurkure, the two popular choices, come in
different SKUs priced at Rs.5, Rs, 10 and Rs. 20, similar
to Bingo and Haldiram.

Bingo
The main objective for ITC was to compete effectively with
players who were already there. Hence, it launched a
direct frontal attack by introducing similar priced SKUs.

ITC already enjoyed cost advantage over competitors

through its e-choupal initiative. This also facilitated timely
supply of raw materials.

ITCs printing and packaging business also lead to highquality, cost-effective and innovative packaging.

Promotional Strategy

Lays
Realizing the direct threat posed by Bingo to its market share,
Fritolay revamped its branding strategy for all leading brands.
For Lays, the company signed on ambassadors Saif Ali Khan & MS
Dhoni. Indianized versions of Lays were also launched after
Bingos success with Indian flavors. These included Chat Street,
Chala Change Ka Chakkar the largest ever brand promotional
strategy undertaken by Fritolay aimed at bringing all its flagship
brands under one roof. This massive umbrella campaign would
allow chosen customers to live the life of a Bollywood Indian
celebrity for a day.

Contd.
Chai Time Achievers a Kurkure centric campaign was aimed at the
housewives in India. The Idea was to promote heavy audience
interaction by sending recipes for new flavors. The winning family
would then have the opportunity to have their photographs on one
million Kurkure packs.
Aside from Juhi Chawla, the company also signed on Kareena Kapoor
for the Desi Beats version of Kurkure.
Other initiatives include posters at unconventional retail points such
as cyber cafes and telephone booths, a tie-up with South-Western
Railways, known as Kurkure Express to increase brand visibility.

Bingo
Bingos launch was strategically timed around the World Cup to
cash in on the tremendous popularity of snacks among cricket
lovers in the country.
ITC booked 10 to 15 spots per channel per day, 20 spots on
radio stations supported by 1000s of hoardings advertising the
product. According to industry estimates, the total advertising
spend in the initial 6 months were roughly 100 crores.
While its competitor Fritolay focuses on celebrity endorsements,
Bingo chose a different route. It didnt have an ambassador!

Contd.
As the product is aimed at the youth, digital media was heavily
used. For instance, the Bingo National Gaming Championship
across 4 cities with more than 25,000 participants.
Bingeonbingo.com and Mad Angles Twister Application
(Facebook) were other initiatives in online media.
This sudden media blitzkrieg of ads left a mark in the audiences
minds and it showed. In certain areas, Bingos market share
touched 50 per cent; in no market is it less than 15 per cent.