Global confectionary market fastest growing Market 150 billion dollars, growing at 16% Indian confectionary market small Moved from commodity to brand Market valued in India at 450 million dollar andestimated at 138,000 T in volume Market price sensitive. Starting price point 50p
Unorganized market contribute 50% Category contribution: Sugar candies 50%,Chocolates 16% and Bubble gum 10% Chocolates, Hard boiled candies, éclairs andtoffees, Chewing and bubble gum, lollipops, mintsand lozenges constitutes the confectionery market Market skewed towards 73% urban and 27% rural
Major players: Cadbury , Nestle, Lotte India,Nutrine, Candico ,Perfetti, Parle , Wrigely ,GCMMF,ITC, Lotus Chocolates, Campco Some leading brands: Chewing gums :Centrefresh, Big Babool, Centrefurit , Centreshock,Happydent,Chiclets. Hard boiled Sweets : Alpehenlibe ,Mentos,, ChattarPatttar, Chlromint, Cofitos and Kismee bar,mangobite, melody, orange candy, poppins, roll-a-cola ,toffees, classic mint, gol gappa Eclairs, Gems,Trident, Dentyne and Halls
Urban market is brand conscious , rural is moreprice sensitive In urban market the consumer associates brandwith quality, rural market higher price associatedwith quality Purchased predominantly from small shops,Kiranas or mom &pop stores Hyper market, Super market , Convenience storesnow stock these confectionary products.
Rising Inflation, raw material prices, growing crudeprices will impact the industry Packaging costs increase due to instable petroleumprices Changing government regulations on tax & subsidyissues. Constant product innovation from new and foreignplayers Low priced products from the unorganized market
Market expected to grow at CAGR 8% Heavy investments made in this industry Product innovations will rule the market ( For e.g.added vitamin and mineral supplements added tothe product ) Taste and quality will be the key drivers as peopleare exposed to western brands Consumption shifting from kids and to youngerpeople
Get a distinct positioning in a crowded market Induce more trials and make the brand familiar Good distribution, easy availability Deep pockets to get share of mind Need key product differentiation to stand out.
Kids prefer chocolate candies over any otherconfectionery products. Cream filled biscuitsemerged as a preferred choice. Chewing Gum lastchoice Chocolate consumption 3 times a day. In school,late evening snacks or after dinner at home Most mothers buy chocolates for their kids. Feweven receive pocket money but no kids admitted tobuying chocolates in secret Softness of chocolate with liquid filled in is relished 5 Star & Poppins are not liked as it sticks to theirteeth
Advertisement is a key motivator for them to try anew chocolate followed by the attractive packaging Friends and word of mouth helps in trying out Toys are a driver but it would only motivate themto try the chocolate a few times till they have thetoys They easily connect with ads of their favoritechocolates. Ads are primary motivator beforebuying a chocolate The ad has to be funny, humorous & make themlaugh” Nickelodeon, XZ Sonic, Pogo, CN & Hungama aretheir favorite TV channels
Parents reiterated that kids prefer eatingchocolates over other confectioneries Popular confectionery liked are wafer-chocolateslike Perk, Munch & choco-filled biscuits like DarkFantasy & Pure Magic. One chocolate spread whichthey really enjoy is Nutella Prefer smaller chocolates like Éclairs over largerchocolates like Dairy Milk. Better frequency ofgiving them helps and can control the consumption Price band of Re1 to 5 is also a added advantage tokeep the costs low Brands that are TOM, Eclairs, Falero, Dairy Chocoshots and Mango Bite
Most important factor for them to buy a newchocolate for their kids is brand reputation Key drivers for kids are quite different. Kids insiston buying chocolates which come in attractivelypackaged and in interesting shapes, has colorfulimages, promoted by some branded cartooncharacter or a FREE toy offer promotion. Health based chocolates not well received They fail to satiate the chocolate or candy desireof kids and is hence not accepted Reputed company, nutritional value and somethingnew and novel will make then try
Éclairs: Get lost, Kho Jao Centerfresh: Zubaan pe rakhe lagaam - Keeps yourmouth shut Centerfruit: Kaise jeebh lapalapaayi - The tonguewags and how Chloromint: Dobaara mat poochna – Don’t askagain! Mentos: Dimaag ki batti jala de - Lights up thebulbs of mind Alpenliiebe: Laalach aaha laplap - Tongue wags ofgreed
Communication revolve around attitude, tasteand fun. Humor forms a key component Good and noticeable ads generate consumersand induces trials Buying is a combination of impulse anddecision based on price and taste Mothers control a lot