ITC Potato Chips and Soaps ... What is Frito Lays and HLL doing?
ITC is set to open two new and significant fronts
A) Potato Chips
B) Soaps
ITC's foods division is preparing to enter potato chips market that is dominated by:
1. Frito-Lay India with brands like Lays, Ruffles and Uncle Chips
2. P&G Pringles - Premium
3. Host of local players
ITC’s product is in its final stages and that it may be launched, in about half-a-dozen flavours, by 2005-end or early next year
Present ITC Foods Portfolio
Ready-to-eat foods, biscuits, staples, spices, cooking pastes, conserves and confectionery
ITC Target
The company plans to do about one-sixth of the volumes Frito-Lay does, which for a new player is seen to be extremely aggressive.
Market Trends
Potato chips is estimated to constitute nearly 85% of India’s total salty snack food market of about Rs 2,500 crore
ITC Strengths
e Choupal - distribution network
B) SOAPS
ITC is opening up is soaps and detergents, a market dominated currently by multinationals like HLL, P&G and Henkel, and domestic brands like Nirma, Godrej and Ghadi.
Sources say that ITC will launch a bathing soap and a detergent powder in the next few months.
Can ITC Potato Chips and Soaps give competition to dominant players - Frito Lays and HLL?
A) Potato Chips
B) Soaps
ITC's foods division is preparing to enter potato chips market that is dominated by:
1. Frito-Lay India with brands like Lays, Ruffles and Uncle Chips
2. P&G Pringles - Premium
3. Host of local players
ITC’s product is in its final stages and that it may be launched, in about half-a-dozen flavours, by 2005-end or early next year
Present ITC Foods Portfolio
Ready-to-eat foods, biscuits, staples, spices, cooking pastes, conserves and confectionery
ITC Target
The company plans to do about one-sixth of the volumes Frito-Lay does, which for a new player is seen to be extremely aggressive.
Market Trends
Potato chips is estimated to constitute nearly 85% of India’s total salty snack food market of about Rs 2,500 crore
ITC Strengths
e Choupal - distribution network
B) SOAPS
ITC is opening up is soaps and detergents, a market dominated currently by multinationals like HLL, P&G and Henkel, and domestic brands like Nirma, Godrej and Ghadi.
Sources say that ITC will launch a bathing soap and a detergent powder in the next few months.
Can ITC Potato Chips and Soaps give competition to dominant players - Frito Lays and HLL?
posted by MarkOUT at 3:28 PM
2 Comments:
ITC .. with an extensive distribution network will definately help to get a considerable pie in potato chips and soap market ..
Also as we have seen ITCs success in Food business in past .. Now it is definately easy to convince to the consumers to leave Fritos and for ITC chips ..
But i am a bit doubtful about ITC soaps - bathing and detergent .. but it looks as if they will make a market for themselves
Only great thing about ITC is its distribution strength .... It has a bad branding experience .. so, like sunfeast, these will also get a single digit marketshare by mkt push ... but it will never take off from there
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