SWOT ANALYSIS OF FRITO-LAYS KURKURE ACKNOWLEDGEMENT This project comes out to be a great source of learning and experience. A lot of effort has been put by various people to make this project a success. This has greatly enhanced our knowledge about FMCG market in India. We greatly acknowledge our indebtness to Prof. Ashok Kumar, for helping us throughout this project and for providing us in-depth knowledge. This project is acumination of efforts of our entire team whose sincere inputs and focused attitude could bring this project to fruition MITHILA WANDHARE (D-21) & SNEHA SHRIVASTAVA (D-51)

INDEX * Introduction of company * Vision and mission * Introduction of the product * Economic factors * Competition factors * Customer legal * Product * Price * Position * Distribution * Customer relationship management * Conclusion INTRODUCTION Frito lay is a division of PepsiCo, Inc. which manufactures, markets and sells a variety of corn chips, potato chips and other snack foods. Frito lay is headquartered in Plano, Texas, a suburb of Dallas. The company’s current form is the result of a 1965 merger of Frito-Lay, Inc. and the Pepsi-Cola Company, which resulted in the formation of PepsiCo, Inc.

Products sold under the Frito-Lay name are now recorded by two PepsiCo divisions: Frito-Lay North America (North American sales) and PepsiCo International (international sales). | Type| Operating Division| Founded| 1961| Founder(s)| The Frito Company H. W. Lay ; Company| Headquarters| Plano, Texas, USA| Key people| Albert P. Carey President and CEO| Industry| Food| VISION AND MISSION Something wonderful—a company that’s all about good fun—doing good things when it comes to making snacks and caring for the environment. You get a company called Frito-Lay, a proud member of the PepsiCo family.

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For more than 75 years, we have enjoyed making the best snacks on earth, starting with simple, farm-grown ingredients. And we’re not stopping now. We continue to innovate, so we can provide tasty products that are good as well as fun. And we’re reducing our environmental footprint by conserving natural resources as well as harnessing renewable energy technology that reduces harmful emissions. We know we still have a lot of work to do, but we’re up to the challenge. We’ve had a lot of good fun along the way, and we’ll continue that as we look to the future.

Because that is what Frito-Lay is all about. INTRODUCTION OF THE PRODUCT Frito Lay India decided to find a niche in the market, by offering a product with a unique shape and taste. Kurkure is named after Hindi word “crunchy”. Kurkure is cheeto like snack and is the flagship of Frito-Lay’s Indian Division, subsidiary of PepsiCo. India. It is marketed by HIRANI INDUSTRIES CORPORATION in KENYA. It is one of the most popular food products in India today. It was launched in India in 1999. The snack comes in 4 flavors. They are * Masala Munch (orange pack) Green Chutney Rajasthani Style (light green pack) * Red Chilli Chatka (dark green pack) * Tamatar Hydrabadi Style (brown pack) * Kurkure Xtreme Electric Nimbu * Kurkure Xtreme Risky Chilli. Actor celebrity Juhi Chawala and Kareena Kapoor are the brand ambassadors of Kurkure. ECONOMIC FACTORS Frito-Lay is a wholly owned subsidiary and snack food division of PepsiCo. It is engaged in the manufacture and distribution of a range of snack foods. Frito-lays employs 45000 people and recorded revenues of $11,586 million during the fiscal year ended December 2007.

The operating profit of the company was $2,845 million during FY2007, an increase of 8. 8% over FY2006. OPPORTUNITIES: * Per Capita Income Rise from Rs. 12000 (2002) to Rs. 38084 (2008). * Decrease in Inflation Rates implies higher disposable income. * Kurkure is biggest contributor of Frito lays 300cr. revenue THREATS: * The purchasing power of the consumers has decreased due to recession. * FDI increases to 49% from 26%in financial year 2008-09 COMPETITION FACTORS DIRECT COMPETITION Direct competitors are those products which come under same category but with different brand. They are: * ITC’s Bingo Parle’s Musst chips and Musst sticks They are in strong competition from Kurkure * SIBLING COMPETITIORS Competitors who are from same brand and can replace Kurkure. They are * Lays, Cheetos * ACROSS CATEGORY * Haldiram Takatak It is a strong competitor of Kurkure INDIRECT COMPETITION They are strong in regional market or local market but offer same category. * Lehar snacks * Diamond kurmure * Homemade chips They are moderate competitors for Kurkure SUBSTITUTE COMPETITION These products can be branded, non branded, regional or local players or national players * Haldiram’s Snacks Bikaneri Snacks * Bhelpuri They are moderate competitors of Kurkure NEW ENTRANTS Products which are new in the market such as * Parle’s Musst sticks and Musst chips * Amul’s * Aliva They can be strong competitors of Kurkure CUSTOMER CHOICE OPPORTUNITIES * Expanding nuclear families * Increase in number of female professionals * It creates a bridge category between Indian namkeens and western offerings like potato chips THREATS * Contains large amount of salt * Consists of various added flavors and preservatives LEGAL FACTORS

Kurkure production plants are audited and certified by various external agencies. These certifications include HACCP (Hazard analysis and critical control point) certification by TQCSI (Australia), which confirms that products are manufactured in Food safety environment and manufacturing has adequate controls to ensure product tracking, American institute of Bakery (USA), one of the best auditing body which confirms process and product safety. Our Plants are ISO 14000 certified which confirms that the manufacturing process ensures environmental safety.

Our plants are also certified to ensure that the product, process, environment and people safety have been maintained at very high level and this certification is issued by OHSAS 18001-(Occupational Health and safety assessment series) – (USA). PRODUCT “Flavor innovations, affordable price points and an excellent customer connect through a 360 degree communication approach has helped the brand enjoy iconic brand salience in the snacks category,” Kurkure comes in different flavors they are Kurkure chilly chatka Kurkure south special

Kurkure east paraa tok jhal Kurkure gree chutnry Rajasthani flavor Kurkure tea time snack PRICE Kurkure is available at cheap price. Price ranges from Rs 5 –Rs. 10. POSITIONING * Kurkure is one the largest selling product of Frito lays * It focuses on quality of the product. * Brand ambassadors: Juhi Chawala and Kareena Kapoor DISTRIBUTION OPPORTUNITIES * Easily available in small retail stores. * An excellent customer connects through a 360 degree communication. CUSTOMER RELATIONSHIP MANAGEMENT

Kurkure is the product which uses relationship marketing to achieve customer touch point value to further convert it to customer lifetime value. It provided good pre as well post consumption level. Because of its taste, easily availability, and easily affordability both strivers and stragglers class can buy this product. Attract Indian customers with its impressive taglines. Like “teda hai per mera hai”, “chala Kurkure ka chakkar” and “Kurkure chai time masti” It creates stimuli in customers. TECHNOLOGY FACTOR Kurkure market is techno-optimist. It is a family product and mainly targets new age nurtures.

Career | Family | Entertainment | Fast forward | New age nurtures| Mouse potato| Techno strivers| Digital hopefuls| Gadget grabbers| Hand shakers| Traditionalist | Media junkies| Kurkure comes under new age nurtures. In this fast pace world now a day’s every member of a family is working so they require ready to eat snacks and Kurkure is the most preferred product. It provides some nutrition also. REFERENCES * Marketing management By Philip Kotler * www. scribd. com * www. managementparadise. com * www. marketingtutor. com * www. wikipedia. com * www. bing. com * www. economictimes. com * www. google. com * www. thehindu. com

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