Frito-Lay India,the food division of Pepsico India, is making buzz in the market by its latest offering Aliva -Chatpate Crackers.Aliva 'per se' is quite an interesting product & has adopted quite a few innovative strategies to cater to customers & establishing itself in the very competitive Rs 4000 crore Indian Biscuit Market,viz:
1)Aliva combines the features of biscuit & Namkeen,therefore customers who wanted a healthier substitute to Potato chips would switch to Aliva as it offers health benefits of Wheat & Daal and comes in tasty flavors.
2)Aliva mainly targets the metropolitan SEC A & B population & therefore has acquired huge shelf presence in the organized retail outlets(The recent ad campaign featuring Chitrangada Singh potrays a chic modish couple with trendy lifestyle designed to appeal to its target population-the ad however does not break the clutter & even the tagline 'Thodi Shararat,Thodi Sharafat' is quite ambiguous).
3)It is especially designed for the Indian population-Currently almost 50% of the offerings by Fritolay in the Indian market including Kurkure,Lays & Cheetos are customized for local acceptance.(Out of the current offerings by FritoLay, Kurkure & Aliva are designed only for Indian market while few of the flavors in Lays are customized to suit the Indian taste).
4)The product will utilize the same distribution channel as Lays & Kurkure-this will create synergy in the products & will lead to an increased bottom-line for Fritolay.
Aliva plans to create a new category of 'Crackers' in the Indian snack market & thus differentiates itself from competition & also justifies a higher price of Rs 12/pack(introductory price).
The product is developed on the underlying assumption that most people consume snacks for its taste & not just health benefits-therefore while the market already had quite a few sweet biscuits positioned on the health platform,Aliva is the first kid on the block positioned as a 'Chatpata' healthy cracker.
The main challenge for Aliva would be to find acceptance as a mainstream product.There would also be some cannibalisation for Kurkure as both the products are customised & targetted towards Indian populace.The brand however has a huge support base from FritoLay & it will be interesting to see how Aliva carves its way in the market.