Market Research Paper
Entering a rapidly growing snacks market, Bingo was able to capture a significant market share by virtue of its extensive marketing efforts, part of which were the creative and innovative promotions. This report focuses on 3 channels of promotion used by Bingo – TV advertisements, Railway Public Address System and Digital Marketing. The report also covers the results Of a survey conducted to evaluate the impact of the wacky TV advertisements. The results of other promotional campaigns are obtained from various secondary sources. ABOUT ITCH The company was incorporated on 24 August, 1910 as the Imperial Tobacco
Company of India Limited; its name was changed to ITCH Limited in 1974. ITCH has a reputation of being one of the World’s Most Reputable Company by Forbes magazine, as the World’s Best Big Company, Sais’s ‘FAA 50’ and, among Indian’s Most Respected Companies by Business World and among Indian’s Most Valuable Companies by Business Today. ITCH being market leader in its traditional business of Cigarettes, Hotels, Paperboard’s, Packaging and Agric-Exports, it is also rapidly gaining market share even in its nascent business of Packaged Foods & Confectionery. ITCH has tried to position itself as a dedicatedly nation-oriented company.
According to chairman Y C Devonshire this ‘commitment beyond the marker helps company to create enduring value for the nation and provides the motive force to sustain growing shareholder value. ITCH has projected each of its business to international competitiveness and also consciously contributed to enhance the competitiveness of the larger value chain of which it is a part. ” ABOUT BINGO The Bingo brand of chips was launched by ITCH in March 2007 with an objective doctorate at least 25 percent market share of the RSI 2200[1] core branded snack market withering years.
The launch was symbolic of It’s cacti of introducing innovative and differentiated products. Bingo was able to differentiate from itself by indulging in ‘karate’ promotional campaigns and having different price points to engage most consumers. The idea was to create the temptation to take that first bite. This was an extremely ambitious target as the market wasteland by the Frito Lay group (owned by Pepsi Co) with brands like Lays,Kruger and uncle Chips holding almost 50 per cent of the market share followed by Hologram group with 25 percent of the market share. Bingo’s portfolio includes a range of products in both Potato
Chips& Finger Snacks segment. Bingo has been positioned as outfall and innovative snack, offering the consumers a wide choice of flavors that are fastening popular. Marketing Project I Bingo’s Promotional Campaigns Page 3 CAMPAIGN – STRATEGY AND CONCEPT 1. TV Commercials Insight and Idea: 0 D 0 C Bingo positioned their flavors by segmenting and targeting people according to geography and cultural mix. They mixed various dies flavors like buttermilk (chaos), pickle (charm) and chutney with potato chips. Bingo also came up with international flavors like cheese and onion to compete with rival chips companies.
Bingo also tried to give variations to the regular circular chips by introducing triangular chips. They came up with unique historical characters like Alibis their marketing strategy. Bingo also launched “Teethed Med” to capture the market of popular snacks “Kruger”. To reap the benefits of the identification of these kinds of snacks by the consumers by its ‘Dated-media” (Twisted) shape, they named the snack accordingly. They targeted mainly the middle and lower middle class population by introducing extra amount per packet and smaller packs to provide them good value for money and flexibility.
Creative Execution: D 0 The TV ads used a subtle element of humor and creativity to carry the brand message across to the populace. No famous personalities were used in any of the ads; rather they have shown characters representing Indian middle class population to induce an emotional connect. The fun element normally came from exaggeration of product properties. One ad compares the tanginess of “Bingo Spicy Miasmal” with the excitement of an action movie by showing a jaded person in a crowded bleak office eating Bingo, and with every bite, there appears a real life chase scene of Indians by the police.
In another ad, the hotness of “Bingo Red Chilly Bijou” causes a flash of fire in the chest pocket of a guy after receiving a flying kiss from a girl eating the product. Throughout all the TV commercials, Bingo branded itself with its characteristic “Going.. ” Sound as a brand element to make it more identifiable among the target population. Bingo TV ads are popular for the extensive use of melodrama; the ads use an element of overacting and a bit of larger than life incidents. The regional flavors of Bingo are promoted using characters dressed up in regional dresses in a congenial set up like the “Bingo Chaos Flavor” ad. Age 4 2. Railways Public Addressing System (A must watch promotion): Bingo railway station ad (SD). MPH Insight and Idea: C] O C] Bingo designed a unique promotional campaign to address decline in sales by offering more per RSI. 5 pack In India 11 million people travel using railways which invariably run late. People wait for long hours at stations and a lot of snacking happens at this time. This was a captive audience waiting to be targeted. Creative Execution: D C] C Bingo addressed the crowds at railway stations sing railways public announcement system in same tone and in an unassuming manner.
It was done simultaneously across major stations in South India. The announcement translated in English is: “Passengers, may I have your attention please. Train number 1 16 Temple express from Moser to Atrophic has been delayed by 7 Hours. The train will depart from platform number 8 when driver finishes munching on his pack of Bingo! Salted. Inconvenience caused is deeply regretted. However, it is unavoidable because Bingo! Salted has 25% extra chips which takes longer time to finish. Thank you. JOINTING!!! Bingo! Salted. No confusion Great combination. ” 3. Online Campaign D 0 www. Engineering. Com has offers, online games, downloads and even mobile games 3,423,546 like the Backbone page and 206,213 fans are actively involved in the forum discussions The Bingo ad campaign follows the AID model (Attention, Interest, Desire, and Action). One of the salient attributes of the Bingo ad campaign is the lack of celebrity endorsements. Bingo! Advertisement campaign is inclined towards humor and uses characters with whom the audience can relate to in real life . The promotion campaign also emphasizes the Indian origins of the product which is a novel way to target the burgeoning Indian middle class.
The product development was done in synchronicity with the promotion campaign and this led to the development of different shapes for the chips which aided in increasing the brand recall. The advertisements of mad angles, tempted, chilly bijou etc. Highlighted the form factor of the product which was an innovative way to grab the attention of audience in a market saturated with the established players like Lays and Hologram. The ‘going’ mound at the end of the advertisement is entrenched in the minds of the consumers as belonging to the Bingo! Rand, the popularity of which can be gauged by the huge number of users who have set it as their message tone. Page 5 IMPACT ANALYSIS Primary Research A survey was conducted to evaluate the impact of creative promotional campaigns employed by Bingo! We decided to use the following metrics to determine the impact: Brand Recall, Brand Awareness, Brand Shifting, Consumption Preferences and Qualities associated with the product. The survey posed 14 questions to the respondents which aided us to understand he effect of the promotional campaigns and helped quantify the metrics.
For instance, the question ‘What comes to your mind first about the Bingo! Ads? Had choices: Characters of the commercials, Wackiness, Jingle (Going) and Tagging. Out of a total of 42 responses, 26 chose the Jingle, which has the unique sound of Going. This is one of the key factors of Brand Recall that the company gained from such high-decibel promotions. The consolidated evaluation of the survey is given below (See Appendix for the complete evaluation) Question Which brand comes to your mind when asked about ride snacks? Which fried snacks ad is the most creative Which snacks food has following tagging: “NO confusion great combination”?
Which ad did you recall first? How many times do you eat BINGO? Are Bingo Ads creative? Did the Ads influence you to buy it? Factor/Characteristic Unaided Brand Awareness (Top of the Mind) Brand Recall Aided Brand Recall Advertisement Recall Consumption Preferences Brand Association Consumer Purchase Decision Brand Shifting Product Qualities Result 40% as compared to Lay’s 44% 56% as compared to Lays 23% 83% respondents answered correctly Mad Angles advertisement was recalled the most One of two respondents consummates least one Bingo! In a week. 50% strongly believed that the ads were creative in nature. 1 out of 55 respondents believed that the advertisements swayed them to try the product 70% of the respondents moved from Lays to Bingo. 61% respondents believed that the Bingo is Fun and Youthful, as portrayed by the advertisements Which fried snacks did you prefer before eating BINGO? What describes Bingo! From the above results, it can be seen that the promotions played a vital role in ITCH Food’s capturing significant market share. The promotional campaign was able to achieve the following: High Brand Recall and Association, High Brand Shifting (from Competitors).
At the same time, it was able to apprise the consumers about the product qualities. Marketing Projects Bingo’s Promotional Campaigns Page 6 Secondary Research 1 . TV Advertisements On television, the company booked 10 to 15 spots per channel per day on youth channels such as Star World, M TV, V Channel, Star Plus and news channels like .NET and Headlines Today. They also had fixed 20 spots on a several radio channels and promoted in most leading national dailies. In the prime cities, the product was advertised on over 1 000 hoardings. According to market estimates, ITCH spent close to RSI 100 core on marketing.
Within a month of the launch of the initial advertisements, 70% of the viewers could recall the brand thus capturing a share of the mind of the consumers. Brand recall along with 16 flavors helped Itch capture 16% of market share in just 18 months. Impact on Top- line (using Denominator Reports): Lays which had a 65% market share (See Appendix) in 2007 and 45% in 2008 after Bingo’s arrival to the savory snack market. Bingo had a market share of in the same year. Using the revenues from industry reports, Lays lost on RSI. 219. 2 core worth of sales and Bingo had approximately RSI. 13. 2 core. This was a direct consequence of the vivid and over-the-top promotional campaigns adopted by Bingo. 2. Railway Public Address Campaign Results: CICS]ICC The results were phenomenal. Unsuspecting people thought that it was a regular announcement until Bingo’s trademark sound “GOING!! ” was heard. It was able to capture attention of the consumers who were waiting at the platform Besides hearty loves and smiles on the faces of travelers there was 32% rise in sales and campaign lasted for a few months People missed the message but not the train.
Ten months after it entered the category with its wafer snack brand, Bingo, It’s foray into the RSI 1,800-core branded snack market has fetched the company a 1 6 per cent market share across the country (Source: AC Nielsen) The Bingo! Range of potato chips saw sales growing by 48 per cent during the December 2010 quarter(Source: Company reports) CONCLUSION The section summaries the key findings from the primary and secondary study performed on Bingo’s promotional campaigns.
