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23RD June,2019

Presented By:
The current trends in Indian snack food
segment and impact of e-commerce
•After 1995, India has seen a massive change in Snack food market. There is a
rise in demand of snacks market which drives manufactures to grow and
operate in this segment lucratively. The food industry has expanded at the rate
of 15.6% over the last few years.
•Due to the busier lifestyle in the recent past, the demand for convenience
products has increased a lot with the thrust of packaged food in India. In order
to save time, people are gradually shifting to ready to eat food items.
•The young population of India, internet-savvy and driven by western
influences, is one of the biggest driving forces of e-commerce in the
country. Bigbasket, Grofers and Amazon to name a few are veteran players in
snacks ecommerce markets and many more existing ecommerce companies are
starting to invest in snacks market considering the all time demand for snacks
lovers in India.
Categories of products that can be sold online.
• Food items including snacks should be consumed within a time
period after its production as specified by the manufacturer.
Further the taste and quality degrades if not consumed after a
certain period of time.
•Snacks such as Sweets(Tin sweets, Chikki Sweets, Bites, Packed
Sweets, etc.), Savouries(Namkeens, Samosa, Kachori,Mathris,
Papads etc.) and Dry fruits) can be sold online if ecommerce
companies tie up with the local snacks shops and local snacks
companies like Jai Snacks(as mentioned in the case study). This
will ensure the fresh and quick deliveries of the demanded
snacks by the consumers.
•Western snacks comes with relatively longer shelf life as
compared to traditional snacks and is also sold online.
•One major consideration should be on the packaging of the
snacks. It should be available in standard quantity packaging
with good quality packaging materials which keeps the snacks
fresh and retain the taste for longer period of time.
Which Platform/s should be leveraged as part of the
online strategy?
•Many snacks shops and small manufacturers of
snacks are running their business effectively online by
successfully running their own website. Similar efforts
can be put by Jai Snacks to penetrate to larger Indian
•Now a days online groceries companies like bigbasket
and grocery to name a few are selling the snacks as
per customer demands.
•Many ecommerce giants like amazon, flipkart, paytm
are now collaborating with local snacks vendors and
small manufacturers of snacks and are catering such
food craving Indian market.
•Above strategies can help Jai Snacks to tap the Indian
market and achieve its goal.
Integrated Marketing Campaign for connecting
with the consumers
•Strategy aimed at unifying different marketing methods such as mass
marketing, one-to-one marketing, and direct marketing. Its objective is to
complement and reinforce the market impact of each method, and to employ
the market data generated by these efforts in product development, pricing,
distribution, customer service, etc.

•Natural food store Pret A Manger actually asked their customers what they
wanted and then acted on it. When they asked for input on recipes and
they got it to the extent feedback has been shared all over the world. Seeing
menu items in print after you’ve posted them and having that kind of input
engages both customers and prospects. The integrated campaign didn’t stop
there either. The company opened a second vegetarian location in London last
month with 20 new items on the menu.
Strategies to counter influence of Western snacks and
•A branded, hygienically packed option, from Mother's Recipe, is double the price
and comes in many flavours. But the branded aloo papad still doesn’t command
the price of packaged, branded potato wafers.

•For example, Lay's potato wafers from PepsiCo, the market leader in India in
'Western' snacks, is priced roughly 10 per cent higher than a packet of aloo papad
of similar size.

•Dosa masala burgers, jaljeera and aam panna drinks, masala oats — these are just
a few products in portfolios of snack-makers, even the multinational ones B
Krishna Rao, Deputy Marketing Manager, Parle Products, said, "The potential for
desi snacks is limitless… companies are gradually converting products that are
traditionally eaten at home to something that are consumed on the go."

•Devendra Chawla, CEO, Future Consumer, said, "Consumers are rewarding brands
that innovate in flavours, form or delivery."