Shobhit Mittal

Market Analysis – Branded potato chips

Market Dynamics
Competitive Impact of
Dimensions Snackies Takeaway –
Both the critical pillars of
Brand Value – Brand recall is the key driver Case facts indicate that Snackies, in short
competition for Crisp are
for retail FMCG product with minimal span, has been able to relegate Crisp to
under threat. Hence,
differentiation second spot in terms of brand recall
Snackies is a credible
Cost Structure – Economies of scale are Crisp has been losing market share to threat for Crisp
important as the cost structure generally Snackies in branded segment. This is considering other aspects
involves high fixed costs resulting in rising TDC per unit like product quality and
price constant

Snackies strategy

Marketing Strategy – Operations Strategy-

• Snackies successfully identified the under-14 teen as the
prime decision makers for the branded potato chips
market
• They not only consume 65% of the total output but also
influence buying choices of the elders
• Snackies targeted this segment specifically and was also
successful in capturing a large chunk of the same
• Snackies, being an MNC, already has economies of scale on
its side.
• Since its already supplying in foreign markets. Hence, it can
remain profitable in Indian market with relatively lower
market share too
• It also must be having financial resources to invest
eliminating the general entry barrier in this market
 Altering market forces– Changing competitive dimensions in potato chips market

Objective – To stem and reverse the market share rise of Snackies by reorienting marketing and product strategies, establishing
variety and quality as the new dimensions of competition rather than cost

Remodel brand offerings to Launch more variants in terms Highlight healthy snacking
Strategy

focus on the biggest of flavours along with focus on prominently in marketing

customer segment – under season specific traditional communications
14 kids offerings

•Children constitute the biggest
segment in terms of consumption
and also act as decision makers for
adults
•Crisp needs to alter its external
Justification
•More flavours/new variants help the
product in acquiring more shelf space
in stores and mind space among
consumers
•Crisp, being a local player, will be
•A large market segment is
available to be tapped beyond the
branded chips market
•Focussing on hygiene/quality
advantages of branded snacks can

packing, quantities offered, price
points and promotion scheme to
make it more children friendly
•Ex – Small 10-15Rs pack targeting
school children. Popular TV, cartoon
characters tatoos/other
memorabilia offered through a
collection focussed promotion
scheme
having a better supply chain as
compared to a few year old foreign
competitor. Hence, it should be able
to supply more variants/ seasonal
products more efficiently.
• Its well established supply chain and
distribution network should help in
obtaining better demand forecasts
and quicker fulfilment times
wean away a lot of ignorant
customers of unbranded segment
towards branded segments
•This will ultimately aid in
enhancing the pie size of branded
chips market with Crisp benefitting
most as the biggest player