Parle SMART CHIPS

Prepared By :Mohit MahajanMonika BhatDiksha WaliPrerna KoulAbhishek Sharma

Presented to :Ms. Nazli Ali Watali

•Parent Company : Parle •Category : Wafers•Sector : Food Products•Tagline/ Slogan : Smart khao smart raho; Ab taste ka maza bina dare•USP : Not fried chips

STP

•Segment : Health conscious people•Target Group : All age groups Lower, middle class people•Positioning : Wafers for people who want

to be healthy

Strategies

Product strategy Parle Monaco recently entered the chips segment with its healthy variant called “Smart Chips”. Realizing the recent market trend of being more ‘health conscious’, Parle, through Smart Chips has carved out its own niche. Highlighting it’s USP (Unique selling proposition) of being baked rather than friend. Smart Chips comes in 4 different flavors:

•Simply Salted•Tangy Tomato•Crazy Chat•Macho Masala

Pricing strategy

Similar to competitors, Smart Chips comes in two SKU’s. Rs. 5 for a 25 gm pack and Rs. 10 for a 50 gm pack

Promotional strategy

The ad campaign, handled by Thoughtshop Communications, features Aamir Khan advocating the benefits of baked chips over the fried ones taking a subtle shot at competing brands

The ad highlights the USP of the product in a humorous way without sounding to preachy or serious, which enables it to stand out from the clutter.

Distribution strategy

Being a veteran player in the food and snacks segment, Parle already has a well-established framework of distribution through its biscuits and other snack offerings. This has enabled Parle to distribute Smart Chips effectively, reaching millions of retail outlets.

Thus, with the advent of Smart Chips, Parle has carved out a small niche for itself aimed at the health conscious snack-lovers. However, it remains to be seen how this product performs in the long run.

SWOT Analysis

Strengths

1. Excellent branding and advertising.2. Excellent distribution and

availability3. Celebrity brand ambassador4. Low fat chips

Weakness

1. Many competitors in this segment.2. Not too many flavors3. Storage issues

Opportunity

1. Leverage successful brand Parle2. Advertise more3. Buy out competition4. More Brand recognition

Threats

1.Threat from local substitute snacks.2. Peoples resistance to change.

Reasons for failure of the product

1. People's resistance to change2. Competition from other major players like Lays, uncle

chips and local markets too.3. Advertisement4. Forgot to make it ‘fun’ to eat.5. Indians cautious about taste rather then health.6. Indians follow the policy of ‘chalta ha’ when it comes to

food which is not consumed regularly.

Recommendations:

1. Company should have launched more types of flavors.2. Different types of advertisements should have been

used to attract different age groups.3. Should have presented the healthy chips concept in

different ways.4. Should have studied the market and the customers

need more efficiently and properly.

Conclusion about the ProductParle tried to come up with Monaco smart chips, roping in Aamir Khan as brand ambassador. Smart chips were in direct competition with Aliva. The complete focus of the product was on health and the other way to present the product were ignored. It was ignored as a healthy option (baked) of evening snack; fun-filled snack that was the need for the Indian palette.

The failure of Monaco smart chips highlight the fact that being healthy is a quality which will help to increase sales, but it can’t be the only point of attraction in a product.

One thing is pretty clear. The focus of the company should be on product that are healthy at a reasonable cost, but at the same time offer a taste that is appreciated by Indian consumers.

Our Overview

"While consumers talk a lot about healthier options, they are still to really warm up to the idea. "The learning for us in the case of Monaco Smart Chips was, consumers are willing to cut down on frequency of consumption but won't give up on taste."

Health and wellness have been the most talked-about subjects in the food and beverages industry in recent years due to an alarming rise in obesity, diabetes and other lifestyle diseases, forcing companies to put nutritional information on food packs, stop promoting unhealthy food and introduce healthier items.

But the Indian buyer is not walking the talks on healthy food habits and the Indian consumer's health habits haven't yet evolved“ because we already know

“ ki SAB CHALTA HAI ”

Any Questions/ Doubts/Suggestions

Thank You