Saturday, February 27, 2010

HIPPO: intense distribution network of Parle Agro


Since i work for ITC Ltd, one of the best known FMCG company in India, i keep close eye on what is changing in marketplace. For the last 1 month during my visit to market, i have seen a drastic change. Earlier it was only BINGO from ITC Ltd and LAYS from FRITOLAYS which was available at most of retail and wholesale counter. One other name we can take is BALAJI in Maharastra, having very strong distribution network and pricing strategy. But today, if you visit a small retailer or a big wholesaler, you will find a good display of newly launched HIPPO from PARLE AGRO. Suddenly i saw advertisement of the product on TV.You can watch the video by clicking on following link-
http://www.youtube.com/watch?v=zOv7F_Tw4ko

the ad clearly show that there is a war going on,mob smashing up a car,Adulterators are spoiling our milk and polluters our rivers, innocent child are forced to work. Everything is bad. But don't loose hope. First understand the reason behind all above mentioned activities.. It is hunger. Hey, society needs to learn a few profound things from the advertising industry and its dipstick surveys. Then think of a solution to all this violence and injustice.

There he … er … she … er … it … is! Is it a bird? Is it a plane? Is it Superman? No, it's a Hippo! And it is giving away snacks that are not fried, just baked. Finally, oil-free nirvana for a troubled world! Peace comes packaged in different colours, backed by a nice old filmi song and distributed by the hand (paw?) of a hippo.

Credits

Client: Parle Agro
Creative agency: Creativeland Asia
Chief creative officer: Sajan Raj Kurup
Executive creative director: Vikram Gaikwad
Creative director: Anu Joseph
Copywriters: Sajan Raj Kurup, Anu Joseph, Huzefa Kapadia
Client servicing: Jay Gala
Production house: Equinox Films
Director: Ram Madhvani
Post-production studio: Pixion
Media agency: OMD

The TVC is seen through the hippo's (brand mascot) view as he goes to every scene of crime, war or conflict, offering each of the involved parties some Hippo chips. Everybody happily obliges and takes a bite, and this is shown to resolve all issues. As the series continues, the voiceover goes on to say that the root cause of all evil in the world is hunger. "So please, don’t be hungry," it appeals. The song ‘Pyaar baat te chalo’ (Keep spreading the love) which doubles up as the background music, plays a pivotal role in helping the TVC communicate its message.

Background-
The maker of Frooti and Appy entered into Rs. 6500 crore branded snacks market with the launch of HIPPO.Incidentally, Parle Agro's R&D team tried over 50 flavours before launching the final five that has been introduced in the market.

Each variant will be priced between Rs. 5 and Rs. 10, initially. The new brand is being manufactured at Parle Agro's plant at Vatwa in Gujarat. The company also plans to pump in funds to increase its manufacturing capacity, distribution network and market infrastructure.



Distribution efficacy and expectation-

Hippo being distributed throughout the company's existing distribution network for confectionery, which was created keeping in mind the entry into the snack category. The brand is being rolled out from Maharashtra in the western region and will soon be available nationally. Parle Agro has created a good confectionery distribution network and good holding in market due to confectionery item.
if i trully write about launching of HIPPO, I'll say that this is a successful launching. Parle Agro is successful in placing there snack at most of the retailer and wholesaler.

Company successfully arrenged hanger and stand for everyone taking upto particular amount to place the HIPPO. since company arrenged stand and hangers, there concept of visibility also came to realisation. now they have a separate stand for HIPPO.
now, PLANOGRAM of any product while doing display is important to success. and if you roam around market, you will find out that all display has been done in a particular brand order.
so, in a way Parle Agro has utilized it's distribution network very cleverly, placed product to everywhere in a way that it is visible to everyone.

Future challenges-

HIPPO has been reached to villages within a few month of it's launching. but still i am not sure that it would be able to continue it's agressive stratrgy. again, competitor are really very very strong, having very great distribution network along with acceptance and market power.

If we take example of BINGO of ITC Ltd, which work on theme of Availability, Visibility and Freshness (where visibility and freshness are important part of distribution along with increasing availability), running 50% extra scheme currently, best in taste and also has been widely accepted by customer,has developed such a great distribution network over more than 100 years, has reach from metros to small village panwala, tapari or if we take LAYS which work on concept of Availability, Acceptability and Affordability and also widely acceptable throughout, has great distribution network developed over period of time, has complete coverage on particular channel of distribution network.
For Parle Agro it will be very difficult to crack this huge distribution network of ITC Ltd and Fritolays. what will happen in future, no one knows till now. But if they have to break these two giants, they need to be very careful in market place about there service, scheme, pricing and distribution strategy. let us hope for the best.

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