Sunday, March 25, 2007

Bingo : A Challenger Brand

Brand : Bingo
Company: ITC

Brand Count: 214

Bingo is ITC's challenge to the monopoly of Frito Lays. This March ,ITC launched Bingo in the highly fragmented Rs 4500-5000 crore ($1 Billion) snack food market.Indian snack food market is dominated by unorganised sector. The organised snack foods market is only Rs 2000 crore and is dominated by the iconic Lays brand with over 77% market share. Having tasted success in Biscuits, staples and Ready to eat market, Bingo will be another test for ITC's marketing muscle. It fights in this segment with none other than Pepsi.

Indian snack food market is divided into : Traditional Snacks ( bhujiya, Chanachur etc) Western Snacks and the newly created Finger snacks segments.
Bingo is entering both the potato and finger snacks market. According to the company press release, Bingo comes in 16 flavors. Its potato snack has 4 innovative variants taking into consideration the taste difference across Indian market. The Finger snacks line has six variants.The TVC's are now on air and the company intends to position this brand as a fun brand targeting at the youth. The brand tries to differentiate from Lays by focusing on innovation (in flavors). Snack foods : because of the low financial risk (low price) for the customer, new tastes will be a key in marketing success. Lays succeeded by offering great quality, variety and brand to reach the leadership position. Bingo it seems is following the leader.
The task is very tough for ITC to fight with Lays. The golden line is that the market is so large that every player will have a space provided, the brand keeps the promise. The high profile brand launch of Bingo will see the market expanding thus benefiting all the players . ITC is aiming at a 360 degree brand building effort to boost the new launch. The exit of Indian team from worldcup may force a re- look on the media strategy for this brand since the company was trying to leverage the worldcup fever in India.
The brand takes the tagline : No Confusion Great Combination. The brand is promoted through a series of funny ad which I feel is little too complicated. The ad tries to be funny but fails to make the audience laugh. The poor execution can create problems for the brand.
Watch the TVC here; Vango Pongo
The launch of Bingo is going to see a fight between two marketing giants in the Indian market.It will be a treat for marketers and consumers .. Bingo....


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