|
|
|
In the early 2000s, the competition in the
Indian sugar confectionery industry intensified. Fast moving
consumer goods (FMCG) majors such as ITC and HUL too entered the
fray.15
In 2004, Lotte India consolidated its position by acquiring a
controlling stake in one of the leading Indian confectionery
companies, Parry, while Wrigley's acquired the worldwide
operations of Joyco gum and confectionery businesses from
Agrolimen16 and further consolidated its position in the Indian
market where Joyco held a strong position.17 |
All these companies were devising aggressive
marketing programs to corner a bigger share of the market. The sugar
confectionery market in India was price-sensitive and distribution
driven.
It was driven by children who spent a significant portion of their
pocket money on sugar confectioneries and, as such, most of the brands
were available at low price points such as Rs.0.50 and Rs.1.00. Stiff
competition in the market had also ensured that the pricing was constant
for nearly five years.
Unlike in other countries, mono packs ruled the Indian sugar
confectionery market. And a very big chunk of the sales came from
unorganized mom-and-pop stores and the paan18 shops. Moreover, unlike in
more developed markets, most of the functional and sugar-free products
were yet to catch on.
The companies competing in this market relied heavily on advertising,
sales promotion (both consumer and trade), and the distribution network.
They were trying to reposition the brands to appeal to the whole family
rather than children alone and to expand the price points with value
added products.
Analysts felt that PVMI had played a great role in developing the market
in India. For instance, it was credited with creating the Indian
caramelized candy segment in India with Alpenliebe.19 It did this by
offering a quality product at the Rs.0.50 price point and backing it up
with a smart advertising and distribution strategy.
The brand was positioned as an irresistible offering with the pay-off
line-cum-jingle, Jee Lalchaye Raha Na Jaaye. Considering that the brand
name was somewhat complicated for the Indian audience, the initial 30
second ads for the brand pronounced the name five times to ensure that
the target audience got familiar with it and pronounced it properly.20
By 2002, Alpenliebe was estimated to be a more than Rs.1 billion brand
in India and accounted for one-third of PVMI's revenues.21
PVMI also kept the brand interesting to the target audience by launching
new variants such as 'cream strawberry' in 2003 and 'Chocoduet' in 2007.
|
15] "Marketing Review," www.domain-b.com, February
21, 2004.
16] Agrolimen is a leading Spanish consumer goods
company.
17] Mohini Bhatnagar, "Sugar-Free Bottomlines,"
www.domain-b.com, January 7, 2005.
18] Paan is a mouth-refresher with digestive
properties that is consumed in countries such as India. It is a combination of
betel leaf, betel nut and a combination of ingredients that may also include
chewing tobacco.
19] Ratna Bhushan, "Perfetti Plans New Variant of
Alpenliebe," www.thehindubusinessline.com, March 6, 2002.
20] Harish B, "Alpenliebe : From the Alps," http://marketingpractice.blogspot.com,
August 3, 2006.
21] Ratna Bhushan, "Perfetti Plans New Variant of Alpenliebe," www.thehindubusinessline.com, March 6, 2002. |
