The potato chips market segment is witnessing a fierce competition from regional brands slowing down the growth rate of the biggies such as PepsiCo and ITC. As a result, the firms have started shifting their focus towards new healthy forms of snacks. Notably, this particular market segment is witnessing twice the growth rate as usual.
The market leader of potato chips segment, PepsiCo is in plans to expand its Kurkure portfolio adding more premium offerings to it. Also, ITC is all set to introduce newer varieties such as regional flavors and multigrain in its Bingo brand. Both the brands are focused in gaining a significant market share from the fresh marketing battle that will be kick started between the Kolkata based firm and its rivalUSgiant.
ITC is thrusting new forms of snacks called finger snacks as it has gained over 7 percent market share in the last year in this category. This was possible as the firm launched around 18 new flavors in the time period. The company also expanded its manufacturing to five locations from two that existed. It also widened its scale of distribution and revamped the packaging method.
As per Sanjiv Puri, ITC’s President for FMCG businesses claimed that the firm cracked the formula when it comes to the finger snacks category by launching innovative formats that are healthy as they use pulses and multigrain. This way, the firm was able to provide a distinctive taste that was much better.
As per a senior industry executive, PepsiCo will be expanding Kurkure into pricier snacks segment and that the same is under development to make sure that there is no drop in the market share and loss in the growth rate. The same strategy is claimed to be adapted to Lay’s potato chips brand as well. One such move is the launch of Lay’s Maxx that is a large pack priced at Rs 30.
It was noted that PepsiCo is looking at new categories that can help it differentiate from the others in the market. As per a senior spokesperson of PepsiCoIndia, the firm was the pioneer to create organized snacks in the country and undoubtedly a category leader.