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Sunday, April 11, 2010

Pepsi now in biscuit market

ya thats true. now the beverage giant Pepsi is eying to grab the share in lucrative biscuit market which is worth of 6000 crore plus. Pepsi entry into this segment would surely pose threat to already established players like Britannia, Parle and now ITC.

now it would be really interesting to watch out what marketing strategy Pepsi is going to follow. Biscuit market in India which is a commodity market, has always been very much price sensitive. Even a rupee increase in price could change the market game. So pepsi has to be very careful in terms of pricing.

ITC could be a classic example. the late entrant in this segment follow 'Single Brand Strategy'. ITC launched saveral sub brands under its umbrella brand 'Sunfeast' as this strategy is useful in easy consumer recall. Making Shahrukh Khan as its brand ambassador for sunfeast also helped the company in getting connect with urban as well as rural market .

Britannia/Parle with its lead in the market has been successful in establishing several popular brands like GoodDay, Tiger, Milk bikis, Monaco, 50-50, Krackjack, Hide&Seek etc. According to the reports in Financial Chronicle , Pepsi would mostly enter into salted biscuit sub category.There are already strong household brands like krackjack, 50-50, monaco etc in this sub-category with competition from ITC also , this will surely add fuel to the margin market.

Pepsi is already having fight with ITC (kurkure vs Bingo) and others in the snacks market. Pepsi can bank on its highly developed distribution channel to leverage its new brand with others though now with the new avataar of Pepsi as biscuit manufacturer could force the existing players to change their strategy.

4 comments:

  1. To start with pepsi has already entered the salted biscuit segment with launch of its brand
    ALIVA on 6th june.2009.

    Aliva’s biscuits have been priced higher than other similar brands in the market. Against Aliva’s promotional price of Rs 12 for a 60-gram pack, Parle’s Monaco is available at Rs 7 for a 75 gm pack, ITC Foods’ Sunfeast Snacky is priced at Rs 10 for 100 gm and Brittannia’s 50-50 is selling at Rs 7 for 65 gm.

    Pepsi’s FritoLay is already in a stiff competition with ITC Foods in the Rs 3,200 crore branded snack market. The Kolkata-based ITC Foods launched its snack brand Bingo in 2007. FritoLay recently introduced Desi Beats in direct competition with ITC’s Bingo Mad Angles.


    so seeing these statics i think so it would be a up hill task as regard to Pepsi in the biscuit industry.

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  2. i guess... wat pepsi can go for is a new shape of biscuits and break all de traditional views of how Biscuits shud look...dats de only wat it can target the market...bcos indians r price sensitive morever there r tons of biscuits availabe...so somethin new and peppy will definitey catch the eye of consumers...also since pespi is known for its connection wid youth....marketin the bicuits such that its pep to have biscuits wid pespi in ur hands...
    i guess it shud work...
    but i have a hunch dat pespi will have to strugle to get the niche market

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  3. ya shashank very rightly commented..actually i think its pepsi pricing strategy is to focus on the upper middle + class especially in the urban market and ya i think pepsi launch of this product is just a market testing in selected urban market ...it has not been launched yet....though thanks for the info as i was not knowing the brand name ALIVA.

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  4. @REMIN ya remin i think u r rt that Pepsi has that youngistan concept with it but i dont think so changing shape or mekin it peppy will add ny more...as its a commodity market...pricing matters more than the product attributes...and already pepsi has kept the price of this ALIVA brand higher than the competetior ones. changing shape will add cost and would challenge customer shape perception of a biscuit which has the risk of market failure but still pepsi can take a chance with your idea i guess..

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