Professional Documents
Culture Documents
7.
8.
9.
10.
11.
as CHILLI MILLI Flavoring in jellies, Marsh Mallows, and center filled candies.
</li></ul><ul><li>DISTINCT PRODUCTS -product & brand extension in different product
categories with distinct shapes, colors, flavors and packaging
</li></ul><ul><li>DIFFERENTIATION -In order to attract the consumers more and more, the
products of CANDYLAND are placed in very attractive stand out trays which set them apart
from their competitors . </li></ul>
7. CUSTOMER FOCUSED STRATEGY <ul><li>They provide hygienic products to their
customers. </li></ul><ul><li>Consistent Quality No to JND (Just Noticeable Difference)
</li></ul><ul><li>Quality- Product quality lies at the core of the company, recognized &
verified by health and safety measures and international quality standards like HACCP and
SANAH, for quality. </li></ul><ul><li>If people have any problem they are most welcomed to
approach them and they seriously take their suggestions into consideration to serve their
consumers and getting their feedback will help the to achieve their goal . </li></ul>
8. PRODUCT STRATEGY <ul><li>CANDYLAND under the umbrella of Ismail Industries
has been known as an innovator and a trend setter in its product categories, have extended
in to the following categories: </li></ul><ul><li>Marshmallows </li></ul><ul><li>Candies
</li></ul><ul><li>Toffees, chew toffees, bubble, chewing gums </li></ul><ul><li>Lollipops
</li></ul><ul><li>Jellies </li></ul><ul><li>Chocolates </li></ul><ul><li>Each portfolio is
further extended into different varieties for example toffees is divided in to plain and filled
toffees. </li></ul><ul><li>Jellies are available in weights from 1g to 30g per piece. These are
packed individually in small or large bags, by weight or numbers and also in bulk packs.
</li></ul><ul><li>Jellies are based on a combination of gelatin, pectin, and starch, with
different variety of shapes. </li></ul>
9. PRODUCT STRATEGY <ul><li>Candies are manufactured in ball, oval, disk and bar
shapes and have variations in weight, color, flavor and texture.
</li></ul><ul><li>Marshmallows was the most recent extensions of the range of products
offered by CANDYLAND, with further expansions in chocolate manufacturing capabilities by
the middle of 2006. </li></ul><ul><li>CANDYLAND innovated and launched a product that
no other confectionary manufacturer in Pakistan had ventured into at that time-Jellies.
</li></ul><ul><li>The company is committed towards its consumers; working to build
customer expectations and then striving to meet and exceed their expectations by focusing
on their new demands and tastes through research. </li></ul><ul><li>Indirect competition
with ice-cream, as the sales of candies increase in winter season as comparatively to
summer season, in which the sales of candies get little bit lower. </li></ul>
10. SEGMENTATION Level of Competition Product definition Illustrative Competitors
Need/Want GENERIC Sugar and confectionary products All confectionary manufactured
companies To satisfy immediate cravings Product type Chocolates Cadbury, Hilal Sweet
Product Variant Coated Jellies (e.g.CHILLI MILLI) Mirch Masala by Hilal Sweet & tangy taste
11. TARGETING STRATEGY <ul><li>The relevant segments to which CANDYLAND caters,
varies from product to product just like any other name in the industry. The Target market
would be hard to define, the primary reason being the huge product portfolio having more
than 120 products catering to different target audience. </li></ul><ul><li> </li></ul><ul><li>
It is not always necessary that brand managers identify the target segment very effectively
(Aisha Ameen, Brand Manager, CANDYLAND) </li></ul><ul><li>The brand has gained focus
by penetrating into the right segments, that is directing their efforts directly at schools where
they can best focus on their target audience (Kids), rather than focusing on aggressive
marketing channels such as advertising and sales promotion which have a vulnerability to
effect the brand image by even a single mistake. </li></ul><ul><li>Moving down into lower
class: C CLASS, the huge market of African countries as well as the local markets rural
areas of all the 4 provinces of the country . </li></ul><ul><li> </li></ul>
12. 12. *In A class: Anyone who is earning more than 25000 and Inter / A Levels TARGET
MARKET & CONSUMER PROFILE Products/Brands Demographics Lifestyle Attitudes
Influencers Chocolates(Sonnet) is focused towards teenage boys Jellies(CHILLI MILLI) is
focused towards teenage girls and college going girls 12-19 year old Single Students Sec A*
& B Majority are students Music, mobile phones, internet and hanging out with friends at
malls and cafes are their favorite time pass Fast Food trend The group is highly conscious
about their physical appearance Their choice driven by their peers Highly brand conscious
because they want to appear cool and trendy and have a good impression on others Jellies
Lollipop Candies Chewing gums Marshmallows Chew Toffees Chocolates 5-8 8-12 males
and females (students) Sec A & B Young boys & girls who lead busy lives They spend their
days in school at tuitions, in madershas, and then doing their homework They want to be the
best in their peer group and want independence. They want to engage in all activities that
help them stand out and are fun Peers, parents and advertising influence their choice.
13. 13. BRAND STRATEGY <ul><li>Vision-Keeping into account the existing global economic
meltdown, the company aims to increase its market share to 25% from an existing share of
12-14%, emphasizing and directing the companys focus on the local market.
</li></ul><ul><li>PREMIUM BRANDS- Not in terms of price but in terms of value
</li></ul><ul><li>To continuously leverage and build the brand </li></ul><ul><li>The main
focus of the company is to increase the brand awareness of CANDYLAND, consumers are
well known to the sub-brands of the company which are well established, but are not aware
of the parent company </li></ul><ul><li>The company believes that no matter how rapidly
the trends might change, a product should not be repositioned until and unless its
performance is really declining. </li></ul>
14. 14. PRICING STRATEGY <ul><li>In pricing, they have to keep in consideration the prices of
raw materials and packaging. Raw material cost is getting high, and they charge premium
pricing for providing good quality products, so sometimes their prices get high.
</li></ul><ul><li>They have had to play around with prices, in some of the products they tried
to increase prices but the PRICE ELASTICITY was not there. </li></ul><ul><li>Most children
are in the habit of bringing coins to the shop to purchase sweets and jellies, it is very difficult
to increase prices. </li></ul><ul><li>Price Collusion- They have to keep in account the
competition. Sometimes, the competitors sit together and form a cartel to control the price in
the industry, by discussing the prices. For example if three of the competitors are selling are
Rs.2 and one is at Re.1, so the industry will face the less growth in the category.
</li></ul><ul><li>Previously they launched STARGUM at Re.1 in Karachi, & then re-launched
at Rs. 2; it was a test marketing to see the perception of kids; kids got a perception that it has
15.
16.
17.
18.
19.
two flavors, and big in size so they afforded to pay Rs. 2. Retailers are still lifting Re.1 gums,
so they face problems in increasing the prices. </li></ul>
15. PACKAGING STRATEGY <ul><li>The company takes months to develop the packaging,
even at times more time than to develop the product itself. Research indicates that the kids
now are more choosy when it comes the color and the graphic design. </li></ul><ul><li>Box
packaging was experimented in the local market and proved to be a good one, because after
consumer research it was found that consumers rate the products available in box packaging
as a very high one in terms of product quality. Consumer insights reveal that the boxes add
value. </li></ul><ul><li>CHILLI MILLI and ABC were launched in boxes of large of Rs. 10; to
some extent it was a success. </li></ul>
16. PROMOTIONAL STRATEGY <ul><li>The main strategy in promotion is to Break the
Clutter by showing Innovation. </li></ul><ul><li>They advertise less on TV, only emphasis on
CARTOON NETWORK CHANNEL to target kids, and they get maximum reach on this
channel. </li></ul><ul><li>Jingle based & animated ads to attract the target audience
</li></ul><ul><li>No emphasis on Print and Out of home advertisements
</li></ul><ul><li>MORE Focused towards BTL activities in school & Kids oriented events
</li></ul><ul><li>Karachiites visit EXPO EXHIBITION mostly; they get higher reach over
there because of the less recreational places in Karachi. </li></ul><ul><li>Inside school, they
go for CANTEEN BRANDING by decorating the CANTEEN with their POS Material and
buntings. </li></ul><ul><li>ABC drawing competition was held in some schools, and gifts
were distributed. </li></ul><ul><li>Designed a Candy shop in malls like Park towers, Forum,
Millennium mall </li></ul>
17. SALES PROMOTION STRATEGY <ul><li>Incentives; change over the years depending
upon the market trends, but generally the company tries to stay ahead of its major competitor
Hilal on this, and the product demand/quality helps as a considerable aid in this regard.
</li></ul><ul><li>The Incentives are of the following types:
</li></ul><ul><ul><ul><ul><ul><li>Brand based incentives
</li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Carton based incentives; e.g.
providing incentives on sale of 1000 cartons per month
</li></ul></ul></ul></ul></ul><ul><li>Point-of-sale material are also distributed, to have a
good relationship with retailers, and to attract the buyers. </li></ul>
18. DISTRIBUTION STRATEGY <ul><li>CANDYLAND started off with competing distribution
system in the beginning since there were & still many unbranded confectionary items and
their products along with them available to the market. </li></ul><ul><li>The company
believes in providing their product available to the customers in the highest quality.
</li></ul><ul><li>Enhancing the distribution stands for making the product available at all the
possible convenience stores. </li></ul><ul><li>Superstores are also not left out of the focus
of attentions and availability is ensured there as well. </li></ul><ul><li>Intensive distribution
strategy is followed with much more emphasize on market penetration. </li></ul><ul><li>
</li></ul>
19. SUPPLY CHAIN STRATEGY <ul><li>The most important factor worth considering is the
rising costs which effects almost every level of the supply chain.
</li></ul><ul><ul><ul><ul><li>Raw materials-Local as well as imported
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
prestigious brands. This allows the company to continually learn from global experiences of
large corporation. </li></ul><ul><li>Hilal is more focused on aggressive advertising
</li></ul><ul><li>Increased competition, especially from the small producers of low quality
confectionery products in the informal sector who do not pay their taxes, indulge in
counterfeit products and have minimum overhead costs. </li></ul>
25. OPPORTUNITIES <ul><li>With the devaluation of the local currency and an increased in
the pegged US dollar, significant potential in venturing into export market.
</li></ul><ul><li>Studies have proved that during the recessionary phases, sales of Candies
and chocolates is increasing in US, primarily because it is the only affordable Luxury over
there. </li></ul><ul><li>Per capita income is increasing with the growing size of the middle
class population in the country. </li></ul><ul><li>Pakistan is also importing substantial
quantity of confectionery, chocolates including other food items. If production of quality
products is increased and prices are lowered the import of these items may be curtailed to a
reasonable level. </li></ul><ul><li>Marshmallow is in introductory </li></ul><ul><li>Fanty
has a considerable potential being in the growth stage </li></ul>
26. FUTURE STRATEGIC DIRECTION
27. FUTURE OBJECTIVE <ul><li>The Company must increase its market share from a
current level of 12% to 25% in the next 3 years- Keeping into consideration the current world
economic recession without bringing any substantial increment in the advertising spend and
emphasizing more on reaching consumers in a cost effective manner.
</li></ul><ul><li>Keeping in account this objective & SWOT analysis in mind; we have
proposed the following strategies for marketing mix. </li></ul>
28. PRODUCT STRATEGY <ul><li>Market Development into the A class audience as wellThis will enhance the companys profit margins and Profit Per Unit and in the long run it will
help develop a better brand image into the eyes of the A class target audience.
</li></ul><ul><li>Potential Product Category- CANDYLAND should launch flavored cakes; as
there are a lot of expensive & international branded cakes are available in the market, and
only local competitor HILAL has hit this market. </li></ul><ul><li>Line extension- Further
extension in Marshmallows and lollipops to give tough competition . </li></ul><ul><li>Product
differentiation strategy- Further product innovation and formulation to meet health issues for
e.g. vitamin-fortified calcium- and protein-fortified candies can be introduced. </li></ul>
29. PRODUCT STRATEGY <ul><li>Explore Product-type Product Market</li></ul><ul><li>Increased functionality of products, e.g., gum tooth whitening in gum
segment </li></ul><ul><li>While the consumers are becoming more health conscious;
chewing gums and sugar-free products are emerging categories, which are showing high
growth. This category can be exploited by launching sugar free gums, targeting adults.
</li></ul><ul><li>Mints and medicated sugar confectionery provide a convenient means of
treating or relieving minor ailments like sore and dry throats. </li></ul><ul><li>Others</li></ul><ul><li>With a very short life span a new brand of candy comes, enjoys its peak
sale for 4 to 6 months and disappear, so the company should come up with more new flavors
within a year as kids want something new every time. </li></ul><ul><li>Withdrawal of some
brands which are not doing well in the market. </li></ul><ul><li>The company should take
into account Nestle as a competitor to compete with the higher income class also. </li></ul>