Introducing a New Product - '"pric-Nicks"

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New Product Development and Marketing

Final Project Report

Project Title : Introducing a New Product - '"Pric-nicks"

                            Submitted by: Group 7, Section J                           

                        Devasish Sharma                        61510566

                        Himanshu Garg                        61510612

                        Krishnananda Bhattacharjya        61510196

                        Saurav Sharan                         61510389

                        Taran S Bedi                        61510873

Overview:

The wafers and chips category in India is ~ Rs 21k crores and is dominated by PepsiCo(Lays), ITC(Bingo) and Uncle Chips. The category consists of ready to eat extruded and fried products.  Cornitos is the latest entrant that offers so called healthy nachos at a premium price(1.3 times as against competitor's price for similar weight and volume sold).

A consumer in this category usually makes purchase decisions of packaged snack and beverages, or indulgence products, at the point of sale and his decisions are not predetermined. Also, the woman of the house owns up the responsibility of providing wholesome food to all members. She wields the ultimate authority of designing a 'good food habitat' in the house, incorporating brands, products and ingredients that promise to deliver holistic health on a platter.

Our product, nutritious Soya based Protein chips come under the category of "functional foods". These products include essential nutrients that often go beyond the initial purpose of fostering normal growth and development. They promote better health and can prevent the onset of chronic diseases. The key ingredients that provide added nutrition in this are pea fiber and whey protein and the product is air fried, making it a healthy product for all age groups.

Customer Needs:

Good Taste at a reasonable price: Most middle class Indian customers rank Taste and price as the drivers towards purchasing intent. Brand elasticity in the snack foods category is relatively low, with customers switching easily to products that provide better taste.

Lifestyle changes:Presently, the Indian population is going through major lifestyle changes, and with the rising middle class, Indians are now gravitating towards ‘functional foods’ such as dietary supplements and Nutraceuticals. Although functional foods are common in developed countries, they are a fairly unchartered territory in India.

 Rapid urbanization rate: ( 2.47% every year) and the job culture in India has made life past paced, and Indians are looking for food products that can be made quickly and ready to eat, without compromising on the nutritional content. Hence the need for "on the go" products.