PROMOTION MIX

• Alpenliebe, a sugar candy, was one of the first brands to be

launched after Perfetti Van Melle (India) Ltd. (PVMI) launched its
operations in India in 1994.

A wholly-owned subsidiary of the world's third largest

confectionery major Perfetti Van Melle S.p.A, It also had other
big brands such as Center Fresh, Center Shock, Big Babool,
Chlormint, Mentos, Fruitella, , Happydent White, Chatar Patar,
etc., in its brand portfolio.
• As of early 2008, Alpenliebe was the single largest selling sugar
confectionery brand in India and made up a major portion of
PVMI's revenue, estimated to be Rs.7 billion in 2007.
• Alpenliebe was available in three flavors - 'rich milky caramel', 'cream
strawberry', and 'chocolate'. In addition to this, the company also
started marketing lollipops under the Alpenliebe brand in the early
2000s in three flavors - 'rich milky caramel', 'strawberry cream', and
'cola & vanilla'. In 2005, the company also launched a center-filled
candy under the brand name Alpenliebe Creamfills.

Analysts gave PVMI credit for creating a big brand (Alpenliebe) in the
low value, low margin, and fragmented sugar confectionery market in
India that was quite different from the market in other developed
countries but very competitive nevertheless.
• The sugar confectionery market includes products such as sweets, jellies,
and gums but not chocolate confectionery. While there was a large
unorganized market for sugar confectioneries in India, the organized market
in India was estimated to be US$461 million in 2007, i.e., around 70 percent
of the total candy market in the country.

According to Euromonitor, the market in India grew at a rate of 7.2 percent

per year between 2002 and 2006.The market was dominated by PVMI which
was the market leader with a market share of more than 30 percent.

Other significant players in the market were Hindustan Unilever Ltd(HUL),

ITC Ltd(ITC), Nestlé India Ltd., Candico, Godrej Beverages and Food Ltd.,
and Ravalgaon Sugar Farm Ltd.Analysts felt that the market was witnessing
a shift with an expansion in the organized segment.
• 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.

• 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 paan
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. 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.
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.
PVMI also kept the brand interesting to the target audience by launching new variants such
as 'cream strawberry' in 2003 and 'Chocoduet' in 2007.
• It was a relatively late entrant in the lollipop segment. In the lollipop market that was declining (14
percent in 2002) and dominated by two brands Pim Pom of Joyco and Mr Pop of Cadburys with a
market share of 70 percent and 30 percent respectively, PVMI managed to emerge as a leader in
2003 with a market share of 46 percent.

According to analysts, it had snatched the market leadership in the lollipop category by moving away
from the kid-centric positioning of lollipops.
• The brand, marketed at the Rs.2.00 price point, was also targeted at adults while emphasizing the
long-lasting properties of its lollipops in the initial ads, and then following it up with the immensely
popular advertising with the pay-off line Lagey Raho (Keep going!).

Alpenliebe Creamfills, which the company had developed for the Indian market, and promoted with
the pay-off line Kuch alag Achanak (Something different, Suddenly!), too did exceptionally well and
was also launched in other markets including China and Poland.

In 2006, the sales of Alpenliebe in India were estimated to be Rs. 1.6 billion. It was not only PVMI's
biggest brand but also the biggest brand in the Indian sugar confectionery market. In the following
year, PVMI roped in leading Hindi film actor Kajol for promoting Alpenliebe.
• Analysts considered this a big shift considering that this was the first time that
PVMI was using celebrity endorsement for any of its brands. However, Sameer
Suneja was quick to point out that the script called for Kajol's presence and that
it would help take Alpenliebe, which was already a big brand, to the next level.
The new pay-off line Laalach Aha Laplap was used, which promoted the
message that when a person takes Alpenliebe once, the desire and greed for
the candy increases.
The ad campaign, created by McCann India, showed how a crocodile (animated)
accidentally tastes an Alpenliebe and follows Kajol around for more.
The launch of the Alpenliebe Chocoduet was also supported by a similar ad
featuring Kajol and the animated crocodile.
In early 2008, Alpenliebe was also involved in co-branding with popular Indian
actor Ajay Devgan's (Devgan) film You Me Aur Hum.
Devgan, also Kajol's husband, appeared in the ad promoting the movie and the
brand. Analysts felt that the concept of Alpenliebe had been beautifully
integrated with the movie scenes and the theme
• With its latest ad campaigns, PVMI was trying to increase the market share of
Alpenliebe further in the growing sugar confectionery market in India.
According to analysts, the sugar confectionery market in India was expected to
grow at a compound annual growth rate of 8 percent through 2011, primarily
due to increased consumption by affluent consumers who tended to purchase
sugar confectionery on impulse, the retail revolution in India, and increase in
the pocket money of children.
But some experts were not altogether satisfied with PVMI's decision to use
celebrity endorsement for Alpenliebe, and particularly its decision to go in for a
theme built around an animated crocodile. They felt that though the new ads
scored high on attention and recall, the company risked diluting the brand
image of Alpenliebe by venturing into the realms of 'absurdism'.

YOUR
VIEWS.................................................................................................................
 Advertising Pepsi
1

Pepsi
2

Pepsi
3

Impersonal, one-way
mass communication
about a product or organization that is paid
for by a marketer.

11
 TASK
• Workshop on communication by MBA
2nd term students is being planned for
other students on 21st May, 2008.
What promotional tools should be
used ?