Consumer Behaviour (9201)

Marketing Strategy – Potato Chips

Group Assignment
Abba Sharma S001
Abhishek Kumar S002
Ajay Upadhay S003
Alok Srivastava S005
Anoop Raj Varshney S009
Arinjay Jain S010
Ashok Kumar Meena S012

Assessed by
Prof
Prof Harsh
Harsh V Verma
Verma
 Marketing Strategy – Yummy Chips

Introduction

• This Case study aims to bring out the marketing strategy of a new firm
intending to venture into the business of potato wafers. The firm
already who have a distribution network setup. They provide a wide
range of chips in multiple Flavours

• The Name of the Brand : yummy Chips

Aim

• To provide high quality and healthy snacks for the complete family

Indian Snacks Industry

• Snacks used to be an occasional indulgence, but today, snacking is

almost synonymous with a “fourth meal”. Perceptions of fragmented
meals and between-meal snacks are fast blurring.

• With close to $400 billion of annual global sales, the snacking industry
is robust and will continue to thrive. Notably, this growth is driven by
soaring demands from developing regions such as India and China as
they constitute a large part of the global population.

• In the savoury snacks market for instance, the Indian market has been
forecasted to have the highest growth among all the other countries
in the world – 16.6 percent between the years 2015 and 2022.

• Primarily comprises of bakery products, ready-to-eat mixes, chips,

namkeen, etc.

• Worth Rs 100 billion in value and over 4,00,000 tonnes in terms of

volume.

• Branded segment is growing around 25% per annum.

 Marketing Strategy – Yummy Chips

• Major players in branded segment include Frito Lay, Haldirams and

Bingo (ITC).

• Potato based snacks constitutes the largest segment of the industry.

• Valued at $468 million, the packaged potato chips market in India has
experienced a 10 percent growth from 2014.

SWOT Analysis

Strengths
Weakness
Well established
New entrant in market
Network
Tough competition
Different Indian flavours

Threats
Opportunities Unorganised market
Fragmented market Stiff competition from
regional players

Competitors Analysis

Pepsico
Category ITC Parle Challenger
Frito Lays
Salted classic Salted Lays Plain
Uncle
Masala Sweet Chutney Crispy
Chips
Tomato Spicy Chuntney Indian
Chips
Chatkila nimbu
Aloo Chat
achar
International Red Chilly Achar
Cream & Onion Flavours
Category ITC Parle Pepsico Challenger
 Marketing Strategy – Yummy Chips

Frito Lays
Kurkure &
Tomato
Masala Munch its
Mischief
flavours
Fingers
Chilli Dhamaka Sweet Chilly
(Stix)
Achaari Masti Chatpata Chat
Funky Masala Saambar
Tomato Twist

Pricing- Volume Strategy of competition

Tackling Competition Parle's Lay's /ITCs

Sticks category - 10 Rs 75 gms 55 gms
Chips Category - 10 Rs 60 gms 35 gms

Consumer Behavior

Risk Analysis
Risk Category Risk Level
Social Low
Financial Low
Psychological High
Functional High
Brand Differentiation High
Overall Risk High

Risks involved

• Price Conscious customer

• Taste Sensitive
• Purchase driven by impulse buying and promotions
• The emotions linked with the brand play an important role in
impacting the buying behavior, leading to an increase in sales and
brand awareness
Consumer Buying Behaviour
 Marketing Strategy – Yummy Chips

 Need Recognition
 Information Search
 Alternative Evaluation
 Purchase Decision

Challenges and Strategy at each level of Consumer Buying Behaviour

1. Need Recognition.

 Consumer behaviour directed at solving problems. Products and

services are marketed as solutions to consumer problems.

 Existence of a problem and its perception is essential for a

consumer to look out for solutions.

 Problem recognition or Need Recognition is a state when a

discrepancy is felt between existing or actual state and desired
state.

 Need is recognized when the difference between the existing

state and desired state is big enough to be perceived by a
consumer and activates his decision-making process for finding a
solution to it.

 Three significant attendant issues for Need Recognition are: -

 Discrepancy between existing state and desired state.

 Size of discrepancy
 Activation of decision-making process.

 In case of Potato wafers, there isn’t an ‘Actual State’ type need

recognition as the current state (available products) do not fall
below the desired state.

 In this case, the ‘Desired State’ need recognition could be

targeted as Consumer’s desire for something new may trigger
decision-making.
 Marketing Strategy – Yummy Chips

 Overtime consumption of similar mundane looking/ tasting

potato wafers could have consumers desiring different/
innovative variants.

 Brand Name.

 Catchy
 Easy to pronounce
 Trendy and Fun
 Recallable

 Brand Identity.

 A brand with various flavours

 A youthful, fun and colorful brand
 Unique shapes
 Easy punch line

 Brand Packaging.

 Attractive packaging
 Pictorial view of the flavour
 Names provided to various variants

 Brand Personality.

 Innovative: Unique shape, colourful packaging

 Experimentative: Innovative flavours

 Yummy’s Chips would thus attempt to create a desire in

Consumer’s mind for alternative to mundane usual potato wafers,
in terms of catchy brand name, innovative flavours, youthful
packaging and cater to the young urge for variety by introducing
15 different tastes/ varieties.
 Marketing Strategy – Yummy Chips

 The aim, therefore, is to create a void in Consumer’s mind to

search for alternatives to available choices in Potato wafers.

2. Information Search.

 Aspects related with information search behaviour are external

search and internal search and amount of search.

 Internal search would include the information available in

Consumer’s memory about the existing options available (Frito
Lay and Haldiram, for instance).

 External search would include gleaning of information through

internet, friends, magazines, media, etc.

 Since potato wafers do not fall in the category of infrequently

purchased items (such as house or car) or risky purchases (costly
purchases), they would not entail heavy search of information.

 Yummy’s Chips would be made available throughout the markets

through the well knit distribution network of our firm, thereby
allowing easy availability to consumers in competition with other
alternatives in the market.

 The firm could also explore tying up with wider distributers like
the Future Group for wider availability.

 Viral Marketing. Content that encourages people to pass on

the message is referred as ‘Viral’ and the strategy is called as
 Marketing Strategy – Yummy Chips

‘Viral marketing’. Induces Web sites or users to pass on a

marketing message to other sites or users.

 Yummy’s Chips could be launched using a viral advertisement. It

could be a spoof based on the relevant trending issue with
masses.

3. Alternative Evaluation.

 Choice among alternatives is a focal point in consumer decision

making process.

 Alternatives are compared or matched against the evaluation

criteria.

 Choice involves rejection of those alternatives that do not serve the

purpose well.

 Evaluation criteria consists of those attributes, features, benefits or

dimensions that consumer looks for.

 Attribute based choice is made by attribute-to-attribute comparison.

Endeavour is to have quality and attitude scoring well over existing
brands such as Frito Lay and Haldiram.

 Affect-based choice, on the other hand, is dependent on feelings

and holistic perception of options available. This depends on how a
brand would make the customer feel. In case of Yummy’s Chips, the
affect-based perception is to be was optimally exploited, giving a
refreshingly different options to consumers to experiment with and
allowing the consumers to wear their rebel attitude up their sleeves.

 Market Segmentation

 Demographic
 Age
 Income
 Gender
 Occupation
 Marketing Strategy – Yummy Chips

 Education

 Psychographics
 Personality
 AIO(attitudes, interest, opinion)

 Usage Patterns
 Heavy
 Medium
 Light

 Buying Behaviour

 Initiator
 Evaluator
 Decision maker
 Purchaser

 Market Segmentation – Yummy’s Chips

 Demographic (Age Group)

 12-20 years
 20-35 years
 35-50 yers
 > 50 years

 Psychographic
 Conservative, reserved, shy
 Outgoing, Fun Loving, carefree

 Indian Geography
 North
 South
 East
 West
 Taste
 Plain
 Crispy
 Marketing Strategy – Yummy Chips

 Indian

 Targeting

 Age Group: 20-35 years

 Attitude: Outgoing, Fun Loving, carefree
 Taste
 Geographical segment – As per prevalent Indian taste

 Positioning

 Youthful positioning
 Energy chips that boost your energy level
 Healthy Snacks
 Allowing one to do / prepare for extreme task

4. Purchase Decision.

• Final selection of option involves use of rules of elimination.

• Consumer now faces the challenge of picking out a brand, which

is most suited to his needs.

• Compensatory Rule. Higher level of delivery on one

attribute can compensate for low performance of another
attribute. In case of Yummy’s chips, innovative Indian flavours
could give young consumers an option to experiment with
different Indian flavours.

• Non Compensatory Rule. Low performance on one attribute

cannot be offset by higher delivery on the other. In case of
Yummy’s chips, there could be no compromise on the taste,
which needed to atleast match up or better than the existing
options (Frito Lay or Haldiram).

• Decision Heuristics. Easy availability and conspicuous

marketing would encourage consumers to try something different
other than the routine options.
 Marketing Strategy – Yummy Chips

Positioning

• Energy chips that boost your energy level

• Healthy Snacks
• Allowing one to do / prepare for extreme task

Brand Features Quality Level Packaging

Name
“Yummy’s Crunchy Potato High Premium Unique packaging
Chips” Chips Quality With scheme differences
Many Flavors Good for the to create both a new
More Quantity health and look and to keep the
(30gm), (60gm) complete recall element in mind
And (200gm) family

Target Age Class Value Publics

Audience
Children All age Upper, Experiences, Organization
Teenagers group upper- Liberal but Media,
Families middle Religious General,
Athletes and Internal &
middle class external and
Consumers

Pricing - To have aim of profit maximization

Variety of Packets sizes Rs 5 for 35 gm

Rs 10 for 75 gm
Rs 20 for 200 gms
Family Packs 400gms , Combinations of
different flavours

Nature of Brand Promotions

Branding
 Marketing Strategy – Yummy Chips

Advertisements – Print Media

Print Newspapers
Radios contests on FM
Advertisements – Electronic Media
TV Programs Sponsor shipment During Olympics telecasts
Sponsoring Events (Sports) Cricket Series,
Kiosks At Bus Station
At Railway Stations
Brand Ambassadors Common Man and Woman-
Discussions , Jokes
CSR initiatives Clean India
Door To Door Marketing

Packaging and Presentation

Packaging
Bright Colors Depicting Happiness, Youth,
Energy , cheerful
Yellow,Orange, Red,Green,Blue
NetWeight 10-20% more than Parle (Nearest
competitor)
Recyclable 100% recyclable
Advertise Advertise your own different
flavors on the packaging and
health conscious tips
Ways of Having this snacks Different ways of enjoying this
snacks
Different places to enjoy this
snack