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FritoLay ready to take on competition

February 06, 2008 12:45 IST

The branded snacks market has seen increased activity with the entry of FMCG heavyweight ITC. FritoLay, the market leader in this segment, is now faced with the task of guarding its position, even as competitors set targets to garner more than half the market share.

By calling smart marketing one of its chief strengths, FritoLay recently kicked off its biggest-ever campaign titled "Chala Change Ka Chakkar", where an individual could swap places with the celebrity brand ambassadors of the company for one day. Managing Director B Gautham Mukkavilli and Director Marketing Deepika Warrier of the FritoLay division of PepsiCo India Holdings tell Ruchita Saxena about FritoLay's strategy to retain the top slot. Excerpts

How do you perceive competition from ITC's Bingo, which reportedly has taken away a share from FritoLay?

Gautham Mukkavilli: In the past one year, we have also grown and it has been a good year for us. More competition has helped in building the category further. So we are very happy. However, we cannot share the growth numbers as we are restricted by company policy.

Deepika Warrier: We are a very young snacking company and also have a lot to learn. We try to grow with our consumer and have hence brought about several innovations in our portfolio both in terms of food ingredients and consumer trends.

Our latest marketing campaign 'Chala Change Ka Chakkar' is an attempt to connect with FritoLay consumers as we felt that every Indian citizen is looking for a change.

What is the growth opportunity in the snacking segment?

Mukkavilli: Modern retail has opened up new avenues for us. We will ensure visibility in this space through our marketing and reach. The company introduced Stax, a premium snacking product, a while ago and it would be distributed through big retail outlets.

Warrier: We are constantly trying to find out what are the different needs of a FritoLay consumer. Recently, we rolled out flavoured variants for our breakfast product Quaker Oats. This product caters to a different kind of consumer need other than snacking.

Similarly, Kurkure Extreme was introduced as an extension of our brand Kurkure, which offers a stronger taste and more 'masti'. Through Kurkure, we have tried to replace biscuits as a teatime snack.

What is FritoLay's strength in the branded snacks category?

Mukkavilli: Actually there is not just one but four strengths that I would like to talk about - our core trademarks, the ability to innovate, smart marketing and retail visibility. One can walk on any street in India and very likely find a stand selling FritoLay snacks.

Warrier: Our team is also one of our biggest strengths.

What are the challenges you face while tapping growth in this category?

Mukkavilli: The challenge we face is from within. We have to constantly raise the bar for innovation and then achieve that target. Even as the category grows, we have to make sure we are growing too.

Warrier: India is at an inflection point, where a whole lot of experimentation is happening. Our brands have been up there for quite some time and we have to make sure that as we transform our portfolio with the changing times, we take the right steps.

What percentage of sales of FritoLay is used in advertising?

Mukkavilli: We are not just spending on advertising, but also on research and development. We have to do both.

Warrier: We cannot share exact numbers, but all we can say is that we are investing consistently

Ruchita Saxena in Mumbai
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