NUTRINE –LEADING THE RURAL MARKET

SAHITI.P

SWASTIKA

SAIRAM

VIVEK P.V

AVERI SAHA

KOMAL SINGH

CONTENTS

• INTRODUCTION TO THE INDUSTRY

• COMPITITORS

• FACTS OF THE CASE

• QUESTION AND ANSWERS

• SUGGESTIONS

INTRODUCTION

India’s confectionery market is

set to witness robust

growth in the coming years.

The factors contributing to the

growth are

buoyancy in demand,

increasing consumerism,

dual family incomes

and a rising young

population

Confectionery categories are chocolate like eclairs and toffees, sugar confectionery or hard boiled candies lollipops, mints & lozenges, bubble gum and cereal bars

Total global confectionery market at Rs 41 billion with a volume turnover of about 2,23,500 tonnes per annum

Category is largely consumed in urban areas with a 73% skew to urban markets and a 27% to rural markets

The Indian confectionery market showed a growth rate of CAGR of more than 18% during 2012-2015

COMPETITORS

SL NO COMPETITORS PRODUCTS

1. CADBURY Dairy Milk, Perks, Gems, 5-Star celebrations, Bytes, Dairy Milk Eclairs, Eclairs Crunch, Halls, Bubbaloo Bubblegum

2 NESTLE Nestle(Kit Kat, Kit Kat Chunky, Munch, Munch Pop Choc and Milkybar Crispy Wafer

3 PARLE Simply imlee

4 HUL ChocoMax and Max Magic candy

5 PERFETTI Centre Shock, Happydent White, Alpenliebe, Big Babol, Chloromint and Cofitos

6. CANDICO Mint-O and Loco Poco

FACTS OF THE CASE

• Acquisition of Nutrine by Godrej Beverages & Foods Ltd (GBFL). While it gives the company a ready entry into the organized confectionery market, the decline in the category's growth has made Godrej more aggressive in the segment soon after the takeover.

• It has already taken a decision to launch a new brand, Maha Maha Lacto, on the strength of Nutrine's existing Maha Lacto brand. This double Maha will be priced at Re 1 and will be twice the weight of the existing brand.

• There are more products lined up, such as `Choco Roll', which is currently being test-marketed in Tamil Nadu.

• According to A. Mahendran, Director, GBFL, "" There are expected to be synergistic benefits from acquiring the brand, which include media buying and distribution and sales strategy.

ANALSYE THE COMPETITIVE SITUATION OF NUTRINE

Nutrine

Parent Company Godrej Hershey Ltd

Category Confectionery

Sector Food and Beverages

Tagline/ Slogan Zyaada doodh, zyaada caramel, zyaada bada

USP A toffee which is bigger and has higher quantity of milk and caramel

SEGMENTATION ,TARGETTING AND POSITIONING

Segment Confectionery for children

Target Group Kids who look for toffees which is tasty

Positioning A toffee which is not only tasty but also healthy

SWOT ANALYSIS

SWOT Analysis

Strengths

1. Godrej a strong brand name in India and Hersheys is a big global brand2. Toffee popular amongst kids in India3. High amount of caramel & milk4. Good distribution and availability of the product5. Strong brand name of the parent company adds value

Weaknesses

1. Brand recall value being limited, the advertisements and other promotions are not too rampant to keep it on the top of buyer’s mind2. Not much of product differentiation

Opportunities1. Non-traditional marketing strategies2. Free gifts that enthuse kids

Threats1. Chocolates in the same price range is available in India2. Competition is huge and almost negligible switching costs

COMPETITORS

SL NO COMPETITORS PRODUCTS

1. CADBURY Dairy Milk, Perks, Gems, 5-Star celebrations, Bytes, Dairy Milk Eclairs, Eclairs Crunch, Halls, Bubbaloo Bubblegum

2 NESTLE Nestle(Kit Kat, Kit Kat Chunky, Munch, Munch Pop Choc and Milky bar Crispy Wafer

3 PARLE Simply imlee

4 HUL ChocoMax and Max Magic candy

5 PERFETTI Centre Shock, Happy dent White, Alpenliebe, Big Babol, Chloromint and Cofitos

6. CANDICO Mint-O and Loco Poco

Evolve the strategy for Nutrine to win both rural and urban markets • Media buying strategy

• Distribution and sales strategy

• Acquisition strategy