PepsiCo India is set to give a leg-up to its acquired brand Uncle Chipps. In terms of national presence, the company plans to get the brand at par with its largest selling potato chips brand – Lay’s.
Uncle Chipps continues to dominate in the northern and eastern markets, but is perceived as a regional brand.
“We are bringing in more flavours for Uncle Chipps which are relevant to the western and southern regions. Region-specific flavours will help the brand build distribution,” said Gaurav Mehta, Category Director, Western Snacks, PepsiCo India Foods.
Uncle Chipps was the market leader in the 1990s and was acquired by Frito-Lay, PepsiCo's snacks division, in October 2000.
However, Lay’s (launched in 1995) continues to rule the snacks category. Being a global offering, it has been positioned as an ‘aspiration-driven’ brand with everyday flavours while Uncle Chipps has relied on Indian ingredients to cater to regional palates.
traditional flavours Considering traditional flavours work equally well in the snacks category, Uncle Chipps will now sharpen its positioning to appeal to a pan-India audience. Mehta said: “Uncle Chipps has always had a broader target audience, which has not been sharply defined unlike Lay’s which is targeted at the youth.” With more India-specific flavours, Uncle Chipps is now expected to gain a national foothold.
PepsiCo also has ethnic brands such as Kurkure and Lehar in the puffed snacks segment, but potato chips is the largest selling category in the snacks segment for the company.
“The two dominant segments in snacks are potato chips and namkeens . Being the market leader in potato chips, we need to drive the segment and flavours have been our biggest differentiator,” he added. Lay’s has recently added two new flavours (Thai Sweet Chilli and grilled cheese) to its existing seven.
PepsiCo is also strengthening brand Lay’s due to intense competition in the market. It has decided to rope in Ranbir Kapoor apart from continuing with Saif Ali Khan, to make sure it continues to appeal to its ‘youthful’ target audience.
“While there is competition from new players such as ITC and Parle, being the market leader, we have to drive the category, build on our competitive strengths and tap into new opportunities,” Mehta said.
There is also speculation that the company is trying to acquire more regional players to strengthen its snacks portfolio.