PepsiCo India Holdings Private Limited - Kurkure

Recommendation: Upheld | Medium: Industry Member

The FTCR panel viewed the product packaging of `Kurkure Masala Munch’ and considered the complainant’s and the advertiser’s response for Review. The FTCR panel observed that the advertiser has provided an "Addendum - Methodological Details" from NielsenIQ as additional submissions for Review of the earlier Fast Track Complaints Panel (FTCP) recommendation. This document explains the methodology used in conducting the study. The FTCR panel further observed that in this study, the cities of Lucknow and Kanpur were selected to represent Uttar Pradesh (UP) both of which are 10-40L towns and are top contributors to the collet category sales in UP. During the discussion, the FTCR panel wished to ascertain the proportion of the UP collet snack brands market that was represented by collet snack brand sales in Lucknow and Kanpur. Accordingly, the FTCR panel requested for data related to sales of collet snack brands market in UP as a whole, and for Lucknow and Kanpur. Both the advertiser and the complainant were approached for the information. The advertiser mentioned that they were unable to provide the information. The complainant provided data regarding collet snack brands sale in Lucknow and Kanpur, and the sales of collet snack brands in total Uttar Pradesh. From the NIQ data shared by the complainant for the collet snacks brand sales in Uttar Pradesh (Urban + Rural) for the years 2022, 2023 & 2024, the FTCR panel estimated that Lucknow and Kanpur together accounted for approximately 5% to 6% of the collet snack brands market in Uttar Pradesh. The FTCR panel discussed that the study conducted focused mainly on these two cities and did not include the smaller urban towns and rural areas, which are also significant parts of the State. Considering Uttar Pradesh’s vast size and demographic diversity, the study should have included data from additional cities across the northern, southern, eastern, and western regions of the State. These areas have similar population density and metropolitan features, and a broader sample would provide a more accurate and comprehensive view of the market. Based on the current data, the study findings do not accurately represent the entire State. The FTCR panel noted that the advertiser claims that Kurkure Masala Munch is No.1 for taste, based on a paired comparison test against two competitors. The FTCR panel discussed that in the study, Panel 1 (202 participants) compared Kurkure with one competitor, and Panel 2 (208 participants) compared it with another competitor. According to NielsenIQ data, the two competition brands used in the study account for 90% of the market share within the collet segment in UP. However, the study did not include data from smaller brands, which may account for 10% of the market. Some of these brands could offer better taste, despite their relatively small market share. Hence, the product's leadership position (No.1) in taste, based on these study results, does not reflect the broader taste preferences of the entire market. The FTCR panel further observed that the `addendum - methodological details’ from NielsenIQ states that, "The total sample size for this project was 410 (Both panels combined) which is in line with the established industry norms for keeping the margin of error <5%". The FTCR panel discussed that a sample size of 400 is regarded as the industry standard to ensure a small margin of error at a high level of confidence when comparing two products. However, the NielsenIQ has conducted two separate tests in this situation, rather than just one. The first test compares Kurkure Masala Munch with one competitor, while the second test compares Kurkure Masala Munch with a different competitor. Although the sample size meets the standard for a single comparison, it is important to highlight that these are two separate tests, not just one comparison between two products. Therefore, combining the data from the two panels is incorrect because, while both the panels tested Kurkure Masala Munch, the second product tested was different in each panel. Accordingly, the tests are different and not comparable. Each test should have an adequate sample size to ensure reliable results. The FTCR panel further discussed that taste perceptions can vary widely, as different individuals may perceive a product differently. Given these variations, the sample size should be sufficiently large to ensure the findings accurately reflect the broader market. Based on this assessment, the FTCR panel concluded that the product packaging claim, "UP Ka No.1 Taste", was inadequately substantiated. The claim is misleading by exaggeration and is likely to lead to widespread disappointment in the minds of consumers. The said claim contravened Chapter I, Clauses 1.1, 1.4 and 1.5 of the ASCI Code. The earlier decision of complaint being Upheld stands on Review.