UNFRIED CHIPS BY MONACO

Monaco's healthy but tasty route



Parle eyes 25% share in the Rs 6,500 crore branded snacks market, from 7% now

After the price war, snacks makers have made the ‘health’ platform their new battleground. While PepsiCo recently positioned cracker brand Aliva as a health food, Parle Products has gone a step ahead with Monaco Smart Chips, which the company claims, is not fried – a first in the chips segment.
“The idea was to give today’s health-conscious consumers a smart choice – healthy, but tasty,” says Shalin Desai, Senior Brand Manager, Parle Products. “Since no other chips are available in the health segment, Monaco Smart Chip’s brand equity is its differentiation”, Desai adds.
Brand experts are impressed. Harish Bijoor, brand-strategy specialist and CEO, Harish Bijoor Consults Inc, says it’s a clever positioning. While every chips manufacturer is occupying the fun and taste range (Aliva isn’t a chips brand), Monaco is trying to occupy the high-ground of smart-eating.
With the extension of Monaco, one of its strongest and fastest-growing brands in biscuits, to chips, Parle is eyeing a 25 per cent market share (from around 7 per cent now) in the Rs 6,500 crore branded snacks market, which has been growing at 15-20 per cent annually.
Smart Chips is available in four flavours: tangy tomato, crazy chaat, simply salted, and macho masala in Rs 5 and Rs 10 price points.
The company forayed into the non-biscuit snacks with Musst Chips and Musst Stix one and a half years back and competes with market leader Frito-Lay’s (Pepsico subsidiary) Lay’s and ITC’s Bingo. Lay’s leads the pack with 48 per cent market share followed by ITC Bingo’ 13 per cent.
Bijoor says the smart positioning has been reinforced by an equally smart TV commercial showing its brand ambassador Aamir Khan, distributing XXL size T-shirts to people having chips. The underlying message is you become obese if you have unhealthy chips. The ad ends with Khan approaching a smart-looking teenager with the T-shirt, only to find that he is already munching Monaco Smart Chips. The ad ends with a punch line – “Better switch to Smart Chips”.
As a positioning, health isn’t anything new for a foods brand. Even confectionery makers such as Cadbury and Nestle have added chocolates to the growing list of food products promising nutrition that includes biscuits, energy drinks and fast food. Examples: Cadbury’s glucose Perk and Nestle’s Milky bar Choo.
Where Monaco has scored is the first mover advantage in the chips segment. But competitors like Frito-Lay’s are unperturbed. The company says that it has already taken the health route by ensuring that the chips are made from the best quality potatoes which contain zero MSG, are cooked in rice bran oil (40 per cent less saturated fat) and contain zero trans fats.
With ITC’s Bingo also expected to join in soon, the battle for the ‘health’ crown in the chips segment has just begun.
Watch this space