PTC Enters the Snack Market PTC is a large trading conglomerate in India. In 2013, its Food division decided to enter the fast growing snacks segment, an altogether new market segment for the group. In this segment, it had only one national competitor – Trito. After 3 years, PTC’s new snack brand – Ringo, captured 20% market share across India. Fingo introduction coincided with the Cricket Word Cup which was hosted in India at the time of the launch. The snack market in India is estimated to be about $700 million. PTC could take advantage of its existing distribution network and easily source potatoes (used to make its snacks) from farmers with whom it already enjoyed strong supplier arrangements. Before PTC entered the market it established a cross-functional team to manage the project. The team commissioned a series of customer survey through a marketing research company in 14 major cities across the country to better understand the snack eating habits of consumers. The results showed that the customers within the age group 15-24 were the most promising for the products as they were quite enthusiastic about trying new snack flavours. In response, the company developed 16 flavours with varying taste profiles that were suiting to the target age-group. The company then decided to target the youngsters as the primary target on the assumption that once they are lured into buying the snack, it was easier to reach the whole family. Advertising in this category was extremely crowded. Every week two to three local products are launched on the market. To break through this clutter, PTC decided to use a humour appeal in its advertising campaign. Price wise, PTC opted for a mid-price range, offering its snacks at 10-15% premium to Trito to convey an image of being a superior product. Industry sources revealed that PTC spent about $70 million on advertising and undertook an integrated campaign that included print and electronic along with digital and social media advertising. This included the creation of its own website (www. ringoingoyougo.com) with offers of online games, prizes and contests etc. Mobile phone downloading was also planned, which proved very popular among teenagers. The website was extensively promoted in mass and social media. Additionally, PTC also undertook extensive advertising on the major cable networks, TV and radio stations in about 60 cities with large teen populations. Analysts believed that Fingo success owed a lot to PTC’s widespread distribution channels, aggressive advertisements along with its clever selection of flavours. The humour appeal in its advertising was also considered a big success. The “Ringo” brand was made visible by painting the name on the trains that crisscross all the major cities daily. PTC was also successful in gaining placement in the biggest supermarket chain in India as well as in other major retailers. Since its entry in the market, Trito’s share has already been reduced considerably. Retail tie-ups, regional flavours, regional humour appeals have helped PTC. But PTC isn’t content. It still wants a bigger share of the market and was even looking at export opportunities. Question Discuss the marketing strategy that was formulated for Fingo snack in terms of the 4 P’s
PTC Enters the Snack Market
PTC is a large trading conglomerate in India. In 2013, its Food division decided to enter the fast growing snacks segment, an altogether new market segment for the group. In this segment, it had only one national competitor – Trito. After 3 years, PTC’s new snack brand – Ringo, captured 20% market share across India. Fingo introduction coincided with the Cricket Word Cup which was hosted in India at the time of the launch. The snack market in India is estimated to be about $700 million. PTC could take advantage of its existing distribution network and easily source potatoes (used to make its snacks) from farmers with whom it already enjoyed strong supplier arrangements.
Before PTC entered the market it established a cross-functional team to manage the project. The team commissioned a series of customer survey through a
Industry sources revealed that PTC spent about $70 million on advertising and undertook an integrated campaign that included print and electronic along with digital and social media advertising. This included the creation of its own website (www. ringoingoyougo.com) with offers of online games, prizes and contests etc. Mobile phone downloading was also planned, which proved very popular among teenagers. The website was extensively promoted in mass and social media. Additionally, PTC also undertook extensive advertising on the major cable networks, TV and radio stations in about 60 cities with large teen populations.
Analysts believed that Fingo success owed a lot to PTC’s widespread distribution channels, aggressive advertisements along with its clever selection of flavours. The humour appeal in its advertising was also considered a big success. The “Ringo” brand was made visible by painting the name on the trains that crisscross all the major cities daily. PTC was also successful in gaining placement in the biggest supermarket chain in India as well as in other major retailers. Since its entry in the market, Trito’s share has already been reduced considerably. Retail tie-ups, regional flavours, regional humour appeals have helped PTC. But PTC isn’t content. It still wants a bigger share of the market and was even looking at export opportunities.
Question
Discuss the marketing strategy that was formulated for Fingo snack in terms of the 4 P’s
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