Business Analysis: Coca-Cola

ITC - BINGO

Term I Marketing Project

Submitted to – Dr. Kanwal Kapil Section B Group - 4

14P071 AnkitVerma

14P082 JudhajitBal

14P083 KanikaTiwari

14P097 Rishi Raj Rahul

14P107 Shivender Singh Chauhan

14P116 UrviAggarwal

CONTENTS

EXECUTIVE SUMMARY 3

SWOT ANALYSIS 6

Strengths: 6

Weaknesses: 7

Opportunities: 7

Threats: 7

PEST ANALYSIS 8

Political Factors: 8

Economic Factors: 8

Social Factors: 9

Technological Factors: 9

PORTER’s FIVE FORCES 11

Potential Entrants 11

Buyers 12

Substitutes 12

Suppliers 13

Industry Rivalry 15

Consumer Behavior 20

POSITIONING 25

SUGGESTIONS FOR THE FUTURE 27

CONCLUSION 28

REFERENCES 29

EXECUTIVE SUMMARY

The purpose of this project was to analyse the marketing strategies pursued by ITC during the launch

• ITC Foods uses its e-chaupal network and rural retail for sourcing potatoes resulting in products at lower costs

• ITC hired the services of O&M for advertising and branding Bingo. The advertising blitzkrieg created brand awareness and an instant recall among the customers

• ITC offers 4-5 % higher margins to the retailers for promoting Bingo better as compared to the competitors

• The launches have been made keeping in mind the regional differences in the palate of the Indian populace

Weaknesses:

• Because of so many flavors and pack sizes, Bingo has a large number of SKUs to maintain

• Changing consumer preferences for healthy products dissuades them from buying wafers and chips

Opportunities:

• With the growth rate of 18.9% (2012) in Indian savory snacks market, there is a huge untapped market that Bingo can target

• There is only one organized large player, Frito Lays, at the national level in the packed snacks segment apart from some regional

Their ability to raise input costs is high. ITC has created a venture e-Choupal, which has a network of 4 million-plus farmers. Through e-Choupal, it procures all its raw materials from farmers directly and traces the commodity through identity preserved procurement, enabling customized blending to support local taste palettes.

• Higher cost of input commodities leads to lower margins, making the market unattractive for distributors and retailers. Key inputs for BINGO include corn, oil, soya, potato and food grains.

• Shortage of any input material affects production and thereby impact distribution.

• A limited scope of substituting inputs makes ITC vulnerable to cost fluctuation of the input commodities.

• ITC has a very strong distribution network, thanks to its vast network which has already been set up for its cigarette brands. The cost of distributing to a local kirana store, which may be the only one shop in a village, is very high unless you carry multiple categories. In ITC’s case the network was already established, so riding on the same supply chain BINGO distribution was modelled, and it shared the cost with other business divisions. In addition to already existing network, retail tie-ups, especially with Biyani 's Future Group – Big Bazaar, forms a strong distribution network.