Pepsico Enters Snack Packaging to “Break the Clutter”

PepsiCo India Holdings Pvt. Ltd, the local entity of American food and beverage maker PepsiCo Inc., is shifting focus to packaging that it believes will help its snacks brand Kurkure to get eyeballs with the intention to fight increasing competition from local firms.

“That’s the first thing a consumer sees. And a consumer does not spend more than 7-10 seconds before deciding on a purchase. The idea is to bring the whole communications architecture through packaging,” said Jagrut Kotecha, vice president (snacks category), PepsiCo India.

On Wednesday, PepsiCo unveiled the new packaging for Kurkure—a brand that the company introduced in India in 1999 to sell corn puffs.


Pepsico Enters Snack Packaging to “Break the Clutter”

The new packs come in different colours, unlike a single colour earlier, and carry images of the ingredients used in the product.

The idea is to “break the clutter” in a crowded snacks market in India that has an estimated 3,500 players.

While Haldiram Foods International Pvt. Ltd, which sells products under the brand Haldirams, has a nationwide presence, the majority of the other players such as Balaji Wafers Pvt. Ltd and Prataap Snacks Pvt. Ltd, makers of Yellow Diamond chips, have the region-specific presence.

“Snacks is an impulse purchase category. PepsiCo has made a clever move by going for vibrant packaging with interesting variants under the brand Kurkure. It gives the brand more shelf space, thereby more visibility, which in turn is likely to result in higher pickups,” said Samit Sinha, brand expert, and managing partner, Alchemist Brand Consulting.

Kotecha said the new design has been developed over the past 12 months by PepsiCo’s global design group, headed by designer Mauro Porcini, along with an external agency Elephant design.

“We have grown at a double-digit in terms of volume in the past 12 months. The target is to double brand Kurkure over next 5-6 years,” added Kotecha. At present, Kurkure’s sales are estimated at more the Rs1,000 crore.

In May 2016, PepsiCo extended Kurkure brand into navratan mixPunjabi chatkachivda mix and alu bhujia, to fight its key competitor Haldirams, albeit with limited success.

Haldirams, which has been selling products like navratan mixPunjabi chatkachivda mix and alu bhujia since 2003, has around 18% share in Indian sweet and savouries market, according to market research firm Euromonitor International.

Besides design, the company has also launched a new multigrain version of Kurkure that has 21.5% less sodium. Last month, the company unveiled new packaging for its flagship juice brand Tropicana targeting to catch the attention of the youth and the fitness conscious consumers.


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