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
