Proposal - Bingo

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A Study on Sales Promotion and Distribution channel of Frito lays (bingo) conducted at

ITC

INTRODUCTION TO CHANNELS OF DISTRIBUTION

The American Marketing Association defines distribution channel as structure of intra company organization units

and extra –company organization units and dealers, wholesalers retailers through which a commodity, product or

service is marketed. It can be further stated as “a pathway composed of Intermediaries, also called

Middleman, who performs such functions as needed to ensure smooth flow of goods and services from the

manufacturing ends to the consuming ends in order achieve marketing objective of a company”.

CHANNEL FUNCTION AND FLOWS

A marketing channel performs the work of moving goods from producers to consumers. It over comes

the times, and possession gaps that separate goods and services from those who perform a number of ways of

functions.

a) Information:The collection and dissemination of current customers, competitors and other factors and forces in the

environment.

b) Promotion:

The development and dissemination of persuasive communication designed to attract customers to the offers.

c) Negotiation:

The attempt to reach final agreement on the prices and other terms so that transfer of ownership or possession can

be affected.

Title of the study

The title of the Project is “A Study on Sales Promotion and Distribution channel of Frito lays(bingo)

conducted at ITC, Bangalore



Statement of the Problem

It is important recognize why and how retailers or stockist make their buying decisions, so that marketer can

make better strategic marketing decisions. Company’s need information when, where and why a customer

buys, and how the technological and social changes affects the consumers in their buying behavior and what

are all the things which influences consumers and to have . in-depth insight into understanding the supply

chain and Marketing of such a vast Companies like ITC.

This study is mainly “ To Find out the sales promotion and distribution channel of frito lays(Bingo)” of

ITC Bangalore.

Background of the Study

“BINGO!”

Bingo is ITC’s launched ready to eat snacks that hit Bangalore on 14 th May 2007. In mid march, in mid march,

ITC announced its foray into the Rs. 2000 crore (Rs. 20 billion) fast moving branded snacks market that has one

major competitor- Frito Lay. After biscuits and pasta, the company has now targeted snacks segment, which is

growing at 30% per year.

ITC Limited- foods Division announced the launch of its snacks brand Bingo, which marks the company’s foray

into the fast growing branded snacks segment. The launch of bingo represents ITC Foods’ fifth major line of foods

business after the highly successful Staples, Biscuits, Ready-to-Eat and Confectionery businesses.

Bingo is strategically timed around the World Cup to leverage the tremendous popularity that such leisure and

cocktail snacks will find among cricket lovers in the country. So cricket lovers can enjoy their favorite matches

while savoring an all- new range of innovative Bingo snacks during the World Cup.

The category of snacks is characterized by a few organized players with limited offering but the unorganized

sector continues to rule the market. However, the organized sector is one of the fastest growing FMCG categories

with an estimated growth rate of 30% annually. The organized snacks category is sub-divided into the traditional

segment (Bhujia, Chanachur etc.), Western segment (Potato chips, cheese balls etc.) and the newly established

Finger snacks segment, which is an adoption of traditional offerings to the western format.



OBJECTIVES OF THE STUDY

• To understand sales promotion and distribution channel of ITC (BINGO) and Fritolays.

• To study the weaknesses of Frito Lays in Bangalore region about sales promotion, distribution channel and

product.

• To give suggestion to ITC on based of findings (BINGO).

• To study Frito Lays distribution channel in Bangalore region.

PURPOSE/ IMPORTANCE OF THE STUDY

The study was undertaken to understand the working practices of Frito-Lays (The Leader)

With special regard to motives and to take an insight into how this Snacks giant company works. The purpose of

this project is to study the practice being at present in Frito-Lay Company so as to identify the strengths and

weakness.

The purpose of this project is to study:

1. The Product Range of Lays

2. Its Pricing Structure,

3. Its Distribution Channel,4. Its Merchandising Practice,

5. Schemes,

6. Sales Promotional Activities,

7. Customer Behavior, and

In order to recommend the same for BINGO of ITC. It has given me an in-depth insight into understanding the

supply chain and Marketing of such a vast Companies. I have tried to identify the weakness of BINGO if any

and accordingly I have tried my best to recommend ways to eliminate the weakness thus identified, in order tomake the system more effective.



For this purpose a primary research was conducted in Bangalore. The research required me to get

questionnaires across customers of different age groups. The survey was also conduct among various outlet,

hypermarkets and big retailers.

Scope of the Study

This study will help the company to understand the sales promotion and distribution channel of ITC product

Frito Lays. So, the study will help the company to improve their services. This study will also reveal

the customer’s view about the company. This study is concerned and limited to Bangalore Region only.

Data Collection Method

The Data Collection Phase of marketing research is generally the most expensive and most Prone to error.

The information collected should be both accurate and relevant as per the requirements of research

project. Depending on the requirement, the research has to work out a suitable data collection method.

Data Collection Methods can broadly be classified into two major categories listed below:

• Primary Method: When a researcher directly collects data then this method is known as primary

methods e.g. interview and questionnaire methods.

• Secondary Method: The data are termed secondary data when they were not originally collected for use

in the research project under consideration; they were collected rather for use by some other person or for

some other project.

1. Determine samples

Target population

• Retailers

• Dealers/ Stockiest

Who buy and sells at small scale shops, small kiosks, paan Walla, road side stall.

2. Interviewing methodology

The various ways to interact with Retailers, Dealers/ Stockiest, Customers would be:

• Structured Questionnaire



• Interviews

• Observation

3.Questionnaire

The questionnaire will contain three basic types of questions: multiple choice, numeric open end

and text open end.

Questionnaire will be filled by

• Retailer

• Wholesaler/Stockiest

4. Sample Size:-

80 retail stores like: Small scale shops, small kiosks, paan Walla, road side stalls.

5. Sample area:-

Sample of area is Bangalore Region

6. Method of contact:

Personal interview/contacts based on the list of Respondents obtained from the company.

7.Research instrument:

Structured questionnaire was used to collect the primary data.

Proposal - Bingo

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