PRODUCT LIFE CYCLE

NIHARIKA CHUGH BBA4547/09

What is Product Life Cycle ?

The Product Life Cycle refers to the succession of

stages a product goes through.

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Product Life Cycle

Product Life Cycle

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Case Study

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

ITC LIMITED

About ITC

Corporate Strategies :-

Developing a portfolio of world class

Continuous focus on chosen portfolio

Benchmark each business

World class & Internationally competitive

Diverse skills & Capabilities

Distributed Leadership

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

ITC Foods Launches Bingo Fifth major line of foods business

Innovative and Differentiated

Array of products in both Potato Chips & Finger Snacks

segment.

Fast-moving branded snack market growing 30 % every year

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Introduction Stage

Characteristic of PLC - Bingo

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Sales

Costs

Profits

Customers

Competitors

Marketing Objectives

Strategic Product

Price

Distribution

Advertising

Sales Promotion

Research Company's in-house research team of eight

people

Studying Home Made Snacks e.g.:- Bhel, Gol

Gappas , Khakra etc.

70 per cent of those surveyed confirmed

Chefs to dish out new and tasty combinations

of existing delicacies.

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Offerings from BingoInitial offerings:- Potato Chips

Finger Snacks segment

Potato Chips Variants:- (Habits of different parts of the country)

Masala Flavours

Salted Flavours

Tomato Flavours

South inspired

Finger Snacks offerings:- (Unique & Innovative)

Pakoda inspired Live Wires

Khakra inspired Mad Angles

Tedhe Medhe

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Advertising

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Bindass Channel

Website

Timed around the World Cup

Television Commercials

Outdoor Hoardings

Merchandise rack (500- 600 0utlets)

Radio & Hoardings Youngsters traveling hours

20 spots a day – Radio One & Radio

Mirchi

Outdoor Hoardings in Top 30 cities

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Growth Stage

Bingo @ Growth Stage

Eaten up Market Share of Lays in 9 months

16% market share @ Snack market

Now aiming for 25%

Lays share reduce from 65% to 45%

High Decibel Advertising

Novelty Factor

Regional Flavors

Distribution Strength

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Sales Promotion Promotional Events

Tie up’s

Multi media Campaign

Advertising Blitzkrieg

4-5 per cent higher margin.

The brand also tied-up with the Aero smith rock

concert.

Bingo is using a high-decibel launch campaign

strategy.

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Tele-Marketing Ads Five 30 second commercial at same time

Ads dubbed in Hindi

Better Brand Recall

O&M

Focus on Products & Brand Management

Tag Line focus on combination of offers

Youth Channels e.g :- Star, MTV, Zee etc

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Bingo @Maturity Stage

• They modified the products by adding some new flavours

• The company has expanded their market to almost all the cities of india.

• In this stage competitors entered into the market (lays, kurkure,taka tak,hippo,uncle chips)

Marketing Objective

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Target is placement of all merchandising units

across the market in a months time

Create Identity in a Short Span

Offering a wide range

Reach every nook & corner

Distinct Approach ( Innovative &

Differentiated products)

Sales

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

16% Market Share in the snacks industry

Costs Manufacturing Facility – Haridwar (Rs 700 crore)

Offering a higher margin (4% -5%)

Future investment of 150 crore

Rs 60-70 crore on campaign

Competition Frito Lays Kurkure Balaji

Price

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Priced at par with Frito's

USP -16 variants

Priced at Rs. 5/- and Rs. 10/-

Distribution Cigarette brands are available at most paan shops

Retail tie-ups, Biyani's Future Group – Big Bazaar

360-degree approach

Profits

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Low Profit ( as compared to other rival products in

Branded Packaged Food)

Customers Type: youthful and innovators

Age Group : 20 – 35

Customer type: Packed-snack-on-the-go

Category: Impulse buy category

HORECA (hotels, restaurants and cafes)

Bingo! It's Frito Lay's loss, ITC's gain

PepsiCo's Frito Lay snacks replaced with

ITC's Bingo

Striking at the small shops

Heavy dose of advertising in this year's

cricket World Cup

Strategy

PLC

About Company

Bingo

Introduction Stage

Growth Stage

Thank You