Thursday, August 30, 2007

Brand Update : Bingo

According to today's Business Standard, Bingo has eaten into the market share of Lays. Six months into the launch, ITC has really broke into the stronghold of Lays. The report cite the clever marketing strategy and the localisation of flavors as the main factors that aided the success of Bingo.
Although it is too early to praise Bingo or ITC on their success, I feel that getting the brand to a market share of 16 % is something commendable. Bingo now aims for 25 % of the Rs 2000 crore branded snack market. The share of Lays have reduced from 65% to 45%.

The brand had made a base for itself. There are various factors that aided the success of Bingo.

High Decibel Advertising : Although I have reservations about the quality of ads, Bingo was able to capture the Share of Noise through its heavy spend. Helping that was the latest move of Lays to change the famous tagline to " Har Program ka Main Food"

Novelty Factor : The snack market is driven by impulse purchases and Bingo had the advantage of the ITC parentage that encouraged consumers to try out the product without much inhibition.

Regional Flavors : This is where Bingo beat Lays in their own game. Lays was the first to localise flavors but Bingo specialized on local flavors and the key differentiator was the Localized flavors.

Distribution strength : If you ask me which is the most critical success factor of Bingo, I would put the distribution strength as the numero uno. Go to any supermarket or kirana store, Bingo is highly visible. In India there is no company that can match the distribution strength of ITC and this has helped this new launch very much interms of Shelf Space and retailer support.

Having said that Lays cannot be written off. Whenever a new brand comes, the larger brands lose market share . Like wise the high profile launch of Bingo has eroded the market share of Lays but things can change very fast. Lays have already scaled up their marketing initiatives and new flavors are on the anvil. The brand also have came out with pack costing only Rs 3 ( sachetisation) to induce non users to try out the brand.

The war has started and for marketers and customers, its going to be a treat.

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