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MINT CANDIES
Hara Prasanna Naik Rajat Gupta Elsa Gleise
Agenda
Understanding India
Product Analysis
Understanding India
Immature market ( per capita consumption is 18 gm vs 3000 gm world average ) Fastest growing in world (rising disposable income , urbanization and growth of organized retailing) New trend Gifting chocolates during festivals Entry of Multinationals (India based) and Imports (since 2002) Low Price , large volumes (5TH in world) , Bottom of Pyramid Distribution is key
Rich
Shots , Eclairs
$1.27 B $2.28
Market Distribution
RURAL
500
URBAN
47 44.2
48
52
450
45
400
350 300 250 200
40
35
29
Chocolate
Sugar Confectionary
27.2 24
Gum
30 25 20 15 10 5
28.6 20
32 68
ORGANIZED
150 100 50
8
6
Sugar confectionery
44
18 5 18
Fruit / Hard boiled Eclairs Mints Toffees Digestives / Herbal Cough Lozenges
51
$400m , 6% CAGR Highly fragmented market Strong regional players Important ones :
Perfetti Van Mille , ITC , Parle ,
32%
24%
16% 7% 8% 13%
Perfetti Parry's Ravalgaon Parle Nestl Other
Low involvement Low brand awareness High switching Low price-point (Rs 0.5 / 1) High volumes Threat from unorganized sector Impulse buying Needs good distribution
SUPPLIERS
Increasing costs Expensive sugar replacement High packaging cost High distribution cost
EXISTING FIRMS
Intense Competition Similar proposition Volumes leadership Distribution battles High marketing expenditure
BUYERS
Low brand awareness High switching Low involvement Fixed price-point
SUBSTITUTES
Sugar free Chewing gums After-smoke products Teeth whiteners Mouth fresheners
1990s with the liberalization of the country. Transformation from a commodity market to a branded product market ruled by multinational companies. However, Local companies also are increasingly finding a prominent position.
The most important companies are:
Cadbury India, Ltd. (market leader) Perfetti Van Melle India, Ltd. Nestle India, Ltd. Lotte India Ltd, Nutrine Confectionery Co
Focus: Sugar Confectionery (candies) = 50% of the market.
breath)
Target of the product: young people (15-34 years old) Very popular in India
Competitor Analysis
There are 4 main competitor products : Nestles Polo ITCs MintO Fresh Mentos Halls fresh
Marketing Campaigns
For a low involvement product, use of humour and ad repetition is important.
Chlormint Dubaara Mat Poochna, Salman Khan as ambassador
In a very low involvement product category, where the product differentiation is low; in order to create a pull, advertising is the right strategy and doing the right advertising with right ad story an important determining factor.
Promotion Strategy
Perfetti can have tie ups with major retailing outlets like More,
Big Bazaar, Metro, etc. and have their boxes kept at the billing counters which would give Perfetti visibility and it is a proven way to increase sales.
New and attractive packaging.
grew bigger by 3 lakh outlets and the company started focusing on small retailers
The company paid 5% margin to the distributors
30%
Recommendations
Promotion of Chlormint in school and college fests. Brands like
Alpenlibe and Center fresh are already popular among college going people.
Can be introduced in toll booths and ticketing counters as it is a
THANK YOU