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- 1. Commerce RPPResearch, Powerpoint Presentation and Public SpeakingTopic: Confectionery Industry By:Mansi Rughani
2. What is Confectionery??? Confectionery is the set of food items that arerich in sugar, any one or type of which is called aconfection. Modern usage may includesubstances rich in artificial sweeteners as well. Generally speaking, confections are somewhatlow in micronutrients but rich in calories.Specially formulated chocolate has beenmanufactured in the past for military use as ahigh density food energy source. 3. Sweetening Agents Confectioneries are defined by the presenceof sweeteners, usually sugars. Most commonis the disaccharide sucrose. Hydrolysis ofsucrose gives a mixture called invertsugar, which is sweeter and is also a commoningredient. Finally confectioneries, especiallycommercial ones, are sweetened by a varietyof syrups obtainedby hydrolysis of starch, these include cornsyrup. 4. The confectionerymarket in India The confectionery market in India hasundergone major changes and growth since theopening up of the economy and liberalization ofthe investment regime in 1991. India became anattractive place for foreign investment andseveral large multinational companies enteredthe market for confectionery products. Sugar confectionery (candies and toffees) hasthe largest share (50%), followed bychocolate, (16%), and bubble gum, (10%). 5. The organized confectionery segment in India segment isdominated by the multinational companies; however, domesticplayers are increasingly finding a prominent position in themarket. Cadbury India, Ltd. is by far the marketleader, followed by Perfetti Van Melle India, Ltd. and NestleIndia, Ltd. Other important players are Lotte India Ltd, NutrineConfectionery Co Pvt Ltd, Candico India Ltd, Parle Products PvtLtd and Wrigley India Pvt Ltd. In the last two years, Malaysia and Singapore have been theleading suppliers of confectionery to India in terms of bothvalue and volume. However, US confectionery exports to Indiaexperienced significant growth from 2002-03 and more thandoubled in value and increased roughly 80% involume, Confectionery exports from Spain registered thelargest growth, increasing more than 500% in value and morethan twice in volume. 6. Brand and origin awareness While domestically manufactured brands dominate the market and consumers have general awareness about them, foreign products and brands are becoming increasingly known. This trend is particularly noticeable in the urban areas and among middle and upper class consumers. These can be summarized as follows: The urban market is brand conscious; the rural market isprice conscious. Products from SE Asia and South America are more orientedto the mass market, while European and US products cater tothe upscale market segments. Imported products in generalare considered to be of higher quality than the domesticones. 7. US brands are less known than European ones. Mars andHersheys are the only US brand names with broaderrecognition in India. The upscale niche market is focused on brand and imagequality. Consumers are looking for known brands with goodquality images. Swiss and Belgium chocolates are consideredthe crme de la crme. Attractive packaging is very important for the brand image.Indians associate quality with good packaging. Importedbrands are presented much better than Indian ones. 8. Pricing The Indian market is very price sensitive. Most confectionery brands ofNutrine, Lotte, Wrigleys, Perfetti, Candico, Parle, etc.are from the Rs. 0.25 to Rs. 1 price categories. Thereis big difference in the prices of domestic andimported products. The general rule is that domesticproducts are the cheapest. Then, there are differentranges of prices for imported products, depending onthe brand, country of origin, and product itself. Asianand South American products are usually moderatelypriced, while European and US products are the mostexpensive. 9. An important factor that affects the price of theproducts is the Central Excise Duty payable by theorganized/registered manufacturers is as follows. Forsugar confectionery (without cocoa), it is 8%(recently reduced from 16%); for chocolateconfectionery, it is 16%. 10. PARLEParle Products has been Indias largest manufacturer of biscuits andconfectionery for almost 80 years. Makers of the worlds largestselling biscuit, Parle-G, and a host of other very popular brands, theParle name symbolizes quality, nutrition and great taste. With areach spanning even to the remotest villages of India, the companyhas definitely come a very long way since its inception. Many of the Parle products - biscuits or confectioneries, are marketleaders in their category and have won acclaim at the MondeSelection, since 1971. With a 40% share of the total biscuit marketand a 15% share of the total confectionary market in India, Parle hasgrown to become a multi-million dollar company. While to theconsumers its a beacon of faith and trust, competitors look uponParle as an example of marketing brilliance. 11. AVAILABILITY Today, the great strength ofParle Products is the extremely widespreaddistribution network. Even at the remotestplaces you can buy Parle biscuits and sweetsfrom the local grocer. It has taken years to create this extensivenetwork. Parles sales force started with one salesman in Bombay and someagents in few other cities. Gradually, Parle Products expanded. Soon sweets and biscuits were being sent by rail toCalcutta, Delhi, Karachi, Madras and other major cities. As production increased, distribution was amplified. Full timesalesmen were appointed in different areas. Currently, ParleProducts has over 33, 00,000 distribution outlets. 12. History In 1929 a small company by the name of Parle products emergedin British dominated India. The goal was to spread joy and cheerto children and adults alike, all over the country with its sweetsand candies. A small factory was set up in the suburbs of Mumbai tomanufacture confectionery products. A decade later this factorywas upgraded to manufacture biscuits as well. Since then, theParle name has spread in all directions and has won internationalfame. Parle has been sweetening the lives of people all over Indiaand abroad.Apart from the factories in Mumbai and Bangalore, Parle also hasfactories in Bahadurgarh, Haryana and Neemrana, Rajasthan.These are the largest biscuit and confectionery plants in thecountry. Additionally, Parle Products also has 10 manufacturingunits and 75 manufacturing units on contract. 13. Perfetti Van MellePerfetti Van Melle is a privately held Italian globalmanufacturer of confectionery and gum. It was formed in2001 with the acquisition of Van Melle of theNetherlands, by the Italian group Perfetti of Italy and havingits corporate headquarters in Lainate (Milan), Italy.Perfetti Van Melle bills itself as the third largestconfectionery manufacturer in the world after Kraft Foods(owners of Cadbury plc) and Mars, Incorporated (owners ofWrigley). It employs 17,000 people via 30 subsidiarycompanies and distributes its products in over 130 countries. 14. ProductsSome of the products they manufacture include:Mentos mintsAirheads fruit chewsChlormint gumHappydent mint gumGolia liquorice gummy candyAlpenliebe caramel chewsBig Babol gumMeller caramel chewsBrooklyn Chewing GumCenter Fresh gum in IndiaChupa ChupsSmint Alpenliebe is the flagship brand of Perfetti Van Melle and a leader in theconfectionery market. 15. Alpenliebe Alpenliebe was launched in India in December 1995 with adistinct product proposition: The candy was an amazing mix of caramel, milk and butter It was the 1st deposited candy in the Indian market andtherefore the eat experience was most uniqueOther than the Caramel flavour, Alpenliebe is currentlyavailable in Cream Strawberry, Chocolate, Coffee and CreamBanana flavours.Looking back at the last 10 years, Alpenliebe has successfullymanaged to capture the sweet tooth of kids, teenagers andadults across various sections of society. 16. Alpenliebe has resided in the world of irresistibility. - Its a world where you give into temptation without any guilt- Its a world that lets you indulge unabashedly- A world where you dont need to justify pleasure seekingAlpenliebe speaks to the child in everyone, one of the very fewcandy brands in the Indian market that has successfully reachedout & connected with both kids as well as adults.In the year of launch (2001) Alpenliebe become the marketleader with 46% market share, while the category at large wasde-growing. Over the last few years the brand has continued tolead the market with over 40% market share. The Brand wassupported through above the line communication and simpleactivation, promotions etc.Maintaining the imagery whilst also making the brand moreendearing. 17. Lollipop has always stayed in the kids domain, almost abirthright! It is a memory that every individual would haveconsumed a lollipop atleast once in their life and truly relishedit. But somehow, as part of growing up, largely throughteenage, early adulthood and as full grown mature adults weseem to have grown too big (read mature) to enjoy the simplepleasures.Alpenliebe Lollipop supports the ideas that simple childhoodpleasures and experiences can be re-lived even when one is nomore a child and thereby growing the audience base of lollipopsbeyond just kids. 18. Alpenliebe MangoFillz was launched as a new propositionunder the Alpenliebe umbrella, and is a candy with liquidMango flavoured filling inside. The product launch is PVMIsfirst foray into the sizeable candy category of virgin fruits.Thisis the first non-cream Alpenliebe candy.Mangofillz has taken forward the overall brand platform ofirresistibility while keeping the focus on the mango taste ofthe product. Kajol, the Alpenliebe brand ambassador, is beingbrought in to provide a connect with the parent brand andbring in its heritage, while the communication itself remainsfocused on the product and its own uniqueness, i.e. a puremango flavoured liquid-filled candy. 19. Big BabolBig Babol was launched in India in 1994, since then it has becomeone of the biggest bubble gum brands in India. Over the years it hasbecome a favourite amongst the kids all over the country.Big Babol is available in Fruit Flavor and Ripe Mango flavour.It is a brand which is known to have very yummy taste and you canblow big bubbles out of it, and this comes with an added advantagethat bubblegum does not sticks to you face. It has been positionedon the fact that how you can use big bubbles to your advantage andmake Big Babol Bade Kaam ki Cheez. Over time, especially withthe diametrically different communication route adopted by thetagline BadeCheez, the main product attributes- that it blows thebiggest bubbles and is soft and non sticky has been established verywell. 20. Center Fresh Center Fresh, the flagship brand of Perfetti Van Melles waslaunched in 1994. It was the first liquid filled chewing gumwhich has tantalized the taste buds of millions of Indians andis a house hold name today. Over the years, Center fresh hasgrown to become the largest selling gum brand in India.It is available in Spearmint, peppermint and Sweet mintflavours and in the Re 1 mono and 5 pcs Rs 6 stick. Currently Center Fresh is positioned on the platform of greattaste which make them prefer to chew than speak. Centerfresh truly Rakhe Zubaan pe lagaam 21. ConclusionsThe Indian market for confectionery products has undergonesignificant changes over recent years. While penetration andconsumption levels are still very low, overall sales, andparticularly sales of higher value premium products haveincreased. The availability of imported products has also beenrapidly rising since India liberalized its imports regime in 2001.Nevertheless, they are still very small leaving ampleopportunities for further growth. The popularity of chocolate products, particularly boxedassortments for gifts, will continue to increase. The sugar confectionery will remain the largest confectionerysegment. We expect to see growth of new and noveltyproducts, such as mint and medicated confectionery (withadded vitamins and/or other minerals), as well as the new tothe country sugar-free confectionery categories. 22. While the traditional targets for confectionery products havebeen children and young people, increasing number ofmarketers have seen growth opportunities in targeting theadult consumer segment. This will lead to new products andmarketing strategies aimed at them. There will continue to be opportunities for new products thatappeal to the young consumer. The ever-present stimulus ofnovelty and fashion, encouraged by continuing exposure towestern culture will keep the doors open for new products andnew suppliers. Marketing and promotion expenditures for confectioneryproducts will increase and distributors will require promotionalsupport from manufacturers. 23. Lets watch fewadvertisements of differentconfectioneries. 24. Any Questions???