This Indian Brand is Destroying Lays and Kurkure 🔥

Summary

The script discusses the Indian snack market, highlighting the decline of PepsiCo's Lay's and Kurkure's market share due to competition from local Indian companies like Haldiram and Balaji. It emphasizes the preference for traditional snacks over Western ones and the strategies employed by Indian companies to capture diverse markets. The script also touches on the importance of brand presence and marketing in sales and the challenges faced by big names like Parle and PepsiCo in maintaining their market share.

Takeaways

• 📈 PepsiCo's dominance in the Indian snacks market has drastically declined from 50% in 2016 to 22% in 2022.
• 🏢 Indian companies like Haldiram's, Balaji, ITC, and Bikanervala have significantly captured the market, reducing PepsiCo's share.
• 🍬 Haldiram's, which started as a small sweet shop, now sells products in over 80 countries, demonstrating significant growth.
• 💼 Balaji started with just a ₹10,000 investment and now generates thousands of crores in revenue.
• 🛒 Indian consumers prefer local snacks over Western ones, with a survey showing 61% favoring Indian snacks.
• 🌍 India's diverse culinary landscape, where recipes change every 100 kilometers, allows regional companies to cater to local tastes better than global brands.
• 📊 Companies like Haldiram's and ITC customize their snacks to suit regional preferences, capturing a more significant market share.
• 🛍️ Local availability is crucial for snack brands; products need to be easily accessible in neighborhood stores to drive sales.
• 🔄 PepsiCo is experimenting with traditional snacks with a modern twist to regain market share.
• 💵 Healthier snack options are often more expensive, limiting their appeal to wealthier consumers, while spicy and flavorful snacks remain popular among the general population.

Q & A

What was the situation of PepsiCo's market share in India in 2016?

In 2016, PepsiCo had a significant market share in India, with Lay's and Kurkure together holding about 50% of the market share.

What is the current market share of PepsiCo in India as of 2022?

As of 2022, PepsiCo's market share has dropped to just 22%, which is less than half of what it was in 2016.

What is the size and growth rate of India's snack market in the global context?

India's snack market is the second-largest and the fastest-growing in the world, but PepsiCo is not growing as fast within this industry.

Which Indian companies have disrupted PepsiCo's dominance in the snack market?

Indian companies such as Haldiram, which started as a small sweet shop, and Balaji, which began with a 10,000 investment, have disrupted PepsiCo's dominance.

What is the preference of Indian consumers when it comes to snacks?

According to surveys, 61% of Indian consumers prefer Indian snacks over Western ones, which has helped local brands like Haldiram and Balaji to grow.

How do regional factors affect the snack market in India?

Regional factors significantly affect the snack market in India, as the taste for lentils changes every 100 kilometers, making it challenging to sell the same snack across different regions.

What strategy has Haldiram adopted to capture a diverse market?

Haldiram has adopted a strategy of not sending a snack to the entire India but selling it only in places where it is popular, and also making and selling different snacks in each state.

How has Balaji managed to stay competitive in the snack market?

Balaji has managed to stay competitive by maintaining its brand presence and engaging in marketing efforts that help it to compete with established brands.

What is the significance of the local availability of snacks in India?

The local availability of snacks is crucial in India because consumers prefer to buy snacks from nearby stores rather than traveling long distances or shopping online.

How is PepsiCo responding to the changing snack market dynamics in India?

PepsiCo is experimenting with modern twists to traditional snacks to prevent the market from slipping away, in response to the changing dynamics.

What is the impact of marketing on the sales of snacks in India?

Marketing plays a significant role in the sales of snacks in India, as brands with strong marketing presence tend to have higher sales, even if their products are less tasty.