Topics: Brand, Snack food, Marketing Pages: 28 (8545 words) Published: March 12, 2013
Prof. Kiran Sharma

Prof. Kiran Sharma


By- Anuraag Boob
Richa Garg
Sohail Jain
Priyal Shah
Saurabh Sharma
Ruchi Vyas

Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack is described as a Small quantity of food eaten between meals or in place of a meal. Snack food generally comprises bakery products, ready-to-eat mixes, chips, Namkeen and other light processed foods According to the ministry of food processing, the snack food industry is worth Rs100 billion in value and over 4,00,000 tonnes in terms of volume. Though very large and diverse, the snacks industry is dominated by the unorganized sector According to an Apeda survey almost 1,000 snack items and 300 types of savouries are sold across India. The branded snacks are sold at least 25% higher than the unbranded products Savoury snacks have been a part of Indian food habit, since almost ages. Though there is no particular time for snacks, normally they are consumed at teatime. The variety is almost mind-boggling with specialties from all regions, which have gained national acceptance industry. he been growing around 10% for the last three years, while the branded segment is growing around 25% per annum to stand at Rs 5,000-Rs 5,500 crore, due to various reasons like Multiplex culture, snacking at home while watching TV, pubs and bars (where they are served free). AC Nielsen's retail audit shows that the large sales volumes are due to a marked preference for ethnic foods, regional bias towards indigenous snacks and good value-for-money perception. Of course the branded segment is much smaller at Rs 2,200 crore, which is what makes it so attractive to food Companies that are looking at bigger shares and in the branded snacks market, to get down to basics,

Frito Lay commands a share of 45%, followed by Haldiram’s at 27% and ITC at 16%.

Of the wide range of snacks available, potato chips constitute a sizeable segment of the Indian snack food industry, according to India Info line. The potato chip market is generally an unorganized industry. Nearly all potato chip snack products are manufactured and sold locally. There is also no uniform standard for packaging, as there is in Europe, the United States and other more developed regions. Many snack foods are sold loose or packaged in poly-pouches, which may only be folded, or in some cases, stapled closed. As the Indian economy continues to grow, and production standards improve, many snack food companies are making significant investments into plant equipment and packaging machinery. Pepsi Foods Ltd., now known as Frito-Lay India Ltd., produces India's largest snack food Manufacturer’s brands, including Ruffles, Hostess, Cheetos and Uncle Chips. Frito Lay's story is an example of how American recipes were adjusted to satisfy local tastes. Procter & Gamble's Pringles brand of potato crisp was launched in Delhi in 1999. Pringles is also a baked potato crisp, unlike many other potato based Indian snack foods that are fried. P&G currently imports the Pringles product and therefore the product has been priced at a premium and is marketed to a micro-niche. SWOT ANALYSIS OF SNACKS INDUSTRY

Abundant availability of raw material
Vast network of manufacturing facilities all over the country Vast domestic market

Low availability of adequate infrastructural facilities
Lack of adequate quality control & testing methods as per international standards Inefficient supply chain due to a large number of intermediaries

Rising income levels and changing consumption patterns
Favourable demographic profile and changing lifestyles
Integration of development in contemporary technologies such as electronics, material science,...
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