Annexure II

Consumer Behaviour Study (38 responses)

Responses
1. Your age group <16 3% The survey was targeted primarily towards the young consumers; population distribution was more towards the age groups of 21 to 30 years of age. This is more relevant from the point of Bingo as it is targeted at the younger age population of India. 16-20 21-30 >30 3% 95% 0%

Inferences

2. Which part of India do you belong to? North 16% The respondents belonged primarily to East and West India as the survey was taken among students on XLRI campus and the friends of the group members.

East West South

45% 34% 5%

3. How frequently do you buy chips? Daily 5% When consumers were asked about the frequency of their buying chips, it was seen that the buying community is clearly segregated into regular buyers and buyers who indulge in occasional buying as in on special occasions. Very frequent buyers who buy chips on regular basis are limited. The above chart compares the number of consumers with their buying frequency. Weekly 24% Several times a month 45% Less than once a month26%

Responses
4. Which are the following brands of chips are you aware of? Lays 95%

Inferences

The respondent showed good awareness about prominent brands like Lays, Kurkure and Bingo which invest heavily TV advertisements and/or celebrity endorsements. Kurkure Bingo Uncle Chips Haldirams Pringles 87% 79% 68% 63% 45%

5. Rate the following on a preference scale of 1 to 5 (1 being the most preferred brand) - Lays 1

45%

As expected Frito Lays is clearly the market leader in branded snacks industry with most respondents rating it as the most preferred or the second most preferred brand.

2 3 4 5

26% 5% 11% 13%

6. Rate the following on a preference scale of 1 to 5 (1 being the most preferred brand) - Kurkure 1

5% Kurkure being a family preferred snack did not rate very highly among our survey respondents who were primarily single college students.

2 3 4 5

18% 26% 32% 18%

Responses
7. Rate the following on a preference scale of 1 to 5 (1 being the most preferred brand) - Bingo 1

Inferences

13%

As per the survey Bingo was rated as the third or fourth most preferred snack brand among the survey respondents.

2 3 4 5

16% 26% 26% 18%

8. Rate the following on a preference scale of 1 to 5 (1 being the most preferred brand) - Haldirams 1

16% Although in market statistics Haldiram is the second most preferred brand it did not find much favour amongst our survey respondents due to their demographic mix. Low TV ad spending by Haldiram could be a major reason for this.

2 3 4 5

13% 34% 26% 11%

9. Rate the following on a preference scale of 1 to 5 (1 being the most preferred brand) - Uncle Chips 1 2 3 4 5

16% Uncle Chips clearly was the least preferred brand. 21% 21% 13% 29%

Responses
10. Whose opinion matters to you when you decide which chips to buy? Friends Family My Own Celebrities Others 8% 8% 84% 0% 0%

Inferences
Most survey respondents rely on their own choice while making purchase decisions.

11. Where do you usually buy chips? Workplace/College cafeteria Most respondents buy chips while on travel. So, 39% convenient packaging and availability are important factors to the consumers. On travel 61% At Malls/Departmental 32% stores During Picnics/Outings 29% Others 13%

12. While deciding on the brand of chips to buy, which factor influences you the most. Price 0% More than variety of flavours consumers preferred richness in taste. This could also lead to a conclusion that a lot of variety in flavours can end up confusing the consumer. 0% Packaging Variety in Flavours 13% Taste 79% Quantity 8% Others 0%

13. Have you tried Bingo chips? Yes 87% A clear majority of the sample population has tried Bingo which speaks of the success of the Bingo advertisement campaign and the effect which has enabled a good brand recall for Bingo. No 13%

Responses
14. What made you try Bingo for the first time? TV Advertisements 55%

Inferences
In order to attract the consumer, ITC has employed a blitzkrieg advertising campaign to create an immediate response, positive or negative, in the minds of the consumers. This is the factor that creates the immediate brand recall and gets the consumer to pick the first pack of bingo. Through our data, we see that most people have seen the advertisements of Bingo, and do remember the product. Other advertising media 0% (Internet/Billboards/Newspapers etc.) Recommendation from 13% friends Display cases at retail shops 13% Others 13%

15. Do you like Bingo chips? Yes No 47% 50% Half of the population surveyed displayed a liking towards the Bingo brand.

16. How many flavors of Bingo chips have you tried? 01-Feb

74% Inspite of offering 4 variants of Mad Angles and 8 variants of potato chips, maximum respondents had tried only 1-2 variants. This shows that ITC should cut down on the number of flavors and focus more on the taste of the product. Only the most popular variants must be retained keeping in mind the regional preferences.

03-May 6 or more

16% 3%

Responses
17. Which flavor of Bingo do you like the most? Premium Salted 24%

Inferences

The flagship product of Bingo, Mad Angles, which has been derived from the Indian snack Khakra to customize to the Indian tastes is seen as the most popular snack preferred by the consumer. The majorly undifferentiated product of Classic salted has also found support from the consumers over its rivals. Two of the flavours captured major interest from the consumers as evident from the data available. Tedhe Medhe Red Chilli Bijli Fiery Red Tomato Mad Angles Others 11% 3% 11% 39% 5%

18. Rate Bingo on Variety of flavors (1 - Very good; 2 -Average; 3 - Poor) 1 21% Most of the respondents feel that the different products offered by Bingo are similar to product offerings offered by the competitors. This means that there is very little separating the major players in terms of taste bud offerings to the consumers. 2 3 63% 11%

19. Rate Bingo on Taste (1 - Very good; 2 -Average; 3 - Poor) 1 29% This response shows that taste is the major differentiating factor which has led to the widespread adoption of Bingo among consumers. Since this is an average number, and based on our other results, some favours find interest and the rest don't which average out to a mixed response. 2 3 53% 11%

Responses
20. Rate Bingo on appeal of the brand name (1 - Very good; 2 -Average; 3 Poor) 1 26%

Inferences

This response shows that Branding is not the primary differentiating factor which affect consumer decisions while buying products like potato chips. As 2 3 37% 29%

21. Rate Bingo on Availability (1 - Very good; 2 -Average; 3 - Poor) 1 50% Most respondents feel that Bingo is freely available in the markets they go to. This fact speaks volumes about the distribution prowess of Bingo. We must add a caveat that this data was derived from an online survey among facebook users and shows that the urban spread of the product is well fanned. 2 3 24% 18%

22. Rate Bingo on Packaging (1 - Very good; 2 -Average; 3 - Poor) 1 2 32% 50% It is apparent that most respondents feel that the packaging of Bingo is pretty average. It follows the standard norms for the industry which have defined consumer expectations but also not outstanding . This shows that packaging is not a differentiating factor for Bingo as packaging is standardized across all players. 3 11%