Click to play videoNew Delhi: In the battle for shelf space retailers and consumers have reason to cheer. Retail Tie ups, regional flavours and distribution muscle has helped ITC hit a bulls eye with its snack Bingo.
In less than six months, ITC's Bingo has managed to grab 16 per cent market share and it hopes to touch 50 per cent in a year - not an easy feat when your battling fritolay for shelf space.
ITC's tie-up with Biyani's Future Group, hurt Pepsi hard forcing the company to look at a revision of its commercial terms with the retail giant.
While its been a flyer of a start, Pepsi still leads the overall Rs 2000 crore branded snack market with over 45 per cent market share.
Where ITC scores on distribution, Pepsi rides high on brand recall with Lays and kurkure. But ITC says is confident of bridging the gap.
ITC Foods Division Divisional Chief Executive Ravi Naware said, “We have created new consumers and taken some away from competition too.”
Arch rival Pepsi on the other hand will increase focus on Lehar namkeen, a category where ITC is yet to bite into.
Pepsi is looking to invest heavily on distribution. Apart from Rs 3 packs, to penetrate further, the company it’s looking at new retail points like STD booths and cyber cafes as well.
The company is also looking is upping spends to make inroads into the southern market, which continues to be dominated by regional players.
Both players are now looking at cashing in on the festive buzz with new advertising and product offerings.
Where ITC has 12-14 new flavours in the pipeline, Pepsi hopes to launch 8-10 different flavours this year. As competition picks up, consumers are going to be spoilt for choice.
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