2. 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 and
estimated at 138,000 T in volume
Market price sensitive. Starting price point 50p
3. Unorganized market contribute 50%
Category contribution: Sugar candies 50%,
Chocolates 16% and Bubble gum 10%
Chocolates, Hard boiled candies, éclairs and
toffees, Chewing and bubble gum, lollipops, mints
and lozenges constitutes the confectionery market
Market skewed towards 73% urban and 27% rural
4. Major players: Cadbury , Nestle, Lotte India,
Nutrine, Candico ,Perfetti, Parle , Wrigely ,GCMMF
,ITC, Lotus Chocolates, Campco
Some leading brands: Chewing gums :Centre
fresh, Big Babool, Centrefurit , Centreshock,
Happydent,Chiclets.
Hard boiled Sweets : Alpehenlibe ,Mentos,, Chattar
Patttar, Chlromint, Cofitos and Kismee bar,
mangobite, melody, orange candy, poppins, roll-a-
cola ,toffees, classic mint, gol gappa Eclairs, Gems,
Trident, Dentyne and Halls
5. Urban market is brand conscious , rural is more
price sensitive
In urban market the consumer associates brand
with quality, rural market higher price associated
with quality
Purchased predominantly from small shops,
Kiranas or mom &pop stores
Hyper market, Super market , Convenience stores
now stock these confectionary products.
6. Rising Inflation, raw material prices, growing crude
prices will impact the industry
Packaging costs increase due to instable petroleum
prices
Changing government regulations on tax & subsidy
issues.
Constant product innovation from new and foreign
players
Low priced products from the unorganized market
7. 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 to
the product )
Taste and quality will be the key drivers as people
are exposed to western brands
Consumption shifting from kids and to younger
people
8. 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.
10. Kids prefer chocolate candies over any other
confectionery products. Cream filled biscuits
emerged as a preferred choice. Chewing Gum last
choice
Chocolate consumption 3 times a day. In school,
late evening snacks or after dinner at home
Most mothers buy chocolates for their kids. Few
even receive pocket money but no kids admitted to
buying chocolates in secret
Softness of chocolate with liquid filled in is relished
5 Star & Poppins are not liked as it sticks to their
teeth
11. Advertisement is a key motivator for them to try a
new chocolate followed by the attractive packaging
Friends and word of mouth helps in trying out
Toys are a driver but it would only motivate them
to try the chocolate a few times till they have the
toys
They easily connect with ads of their favorite
chocolates. Ads are primary motivator before
buying a chocolate
The ad has to be funny, humorous & make them
laugh”
Nickelodeon, XZ Sonic, Pogo, CN & Hungama are
their favorite TV channels
12. Parents reiterated that kids prefer eating
chocolates over other confectioneries
Popular confectionery liked are wafer-chocolates
like Perk, Munch & choco-filled biscuits like Dark
Fantasy & Pure Magic. One chocolate spread which
they really enjoy is Nutella
Prefer smaller chocolates like Éclairs over larger
chocolates like Dairy Milk. Better frequency of
giving them helps and can control the consumption
Price band of Re1 to 5 is also a added advantage to
keep the costs low
Brands that are TOM, Eclairs, Falero, Dairy Choco
shots and Mango Bite
13. Most important factor for them to buy a new
chocolate for their kids is brand reputation
Key drivers for kids are quite different. Kids insist
on buying chocolates which come in attractively
packaged and in interesting shapes, has colorful
images, promoted by some branded cartoon
character or a FREE toy offer promotion.
Health based chocolates not well received
They fail to satiate the chocolate or candy desire
of kids and is hence not accepted
Reputed company, nutritional value and something
new and novel will make then try
14. Éclairs: Get lost, Kho Jao
Centerfresh: Zubaan pe rakhe lagaam - Keeps your
mouth shut
Centerfruit: Kaise jeebh lapalapaayi - The tongue
wags and how
Chloromint: Dobaara mat poochna – Don’t ask
again!
Mentos: Dimaag ki batti jala de - Lights up the
bulbs of mind
Alpenliiebe: Laalach aaha laplap - Tongue wags of
greed
15. Communication revolve around attitude, taste
and fun.
Humor forms a key component
Good and noticeable ads generate consumers
and induces trials
Buying is a combination of impulse and
decision based on price and taste
Mothers control a lot
