An approach note for fruit based Confectionery

Group 9
Anjana Rao - PGPM508_36
Suraaj Doshi - PGPM508_08
Ajit kumar - PGPM508_20
Gagan Seth - PGPM508_44
Chandra Verma - PGPM508_56
Case Facts
Pilot Study in Maharashtra
Brand grew 20% in Maharashtra
over its sales in previous quarter (Jan
– Mar)

Key Strengths
Demographic Advantages
3rd largest State by Area
 2nd largest population base in the
country (around 100 Million)
 Diverse population mix
(countrywide and urban-rural
segment)
Industry Analysis - Confectionery
One of the largest and well developed among food
processing sectors
Market Size in India - Rs25 00Crores (60% Urban)
30% Chocolate based and 70% (Sugar and others)
Highly competitive, low margin and high volume
market
Indian Confectionery market is forecasted to increase
by 10% for next 5 yrs
Marketing strategy
Product
Marketing strategy
Price -

Place /Distribution
Marketing strategy
Promotion
 Strategic 3C’s for Confectionary market
The strategic 3C’s – Customer , Competitors, Cost

Customer
 Price Sensitive
 Wants a highly differentiated product to pay a higher price
 Useful to target the segment of families with children and
college-goers

Cost
 The costs will increase due to the additional features added to
the product (re-branding)
 But if the sales volume go up then economies of scale can be
achieved in order to attain cost effectiveness
Strategic 3C’s for Confectionary market
 The strategic 3C’s – Customer , Competitors, Cost

 Competitors
 Highly competitive confectionary market
 Price wars because many historical players and most products
are in mature phase of growth
 Brand rivalries among many branded players in market.
 Intense competition from traditional sweet marts
 To differentiate the product over competitors use rebranding and
promotion to sustain the excitement level for repeat purchases
and build more value
PLC - Extension of the mature phase

In the Confectionary market products seem to enjoy very long

maturity, if not immortality, with no signs of decline.
Marketers to prolong the profitable mature phase for as long as
possible , using a range of extension strategies.
Extending the product life span is the goal of many firms.
Key Facts:
Confectionery Market Size: Approx. Rs. 2500 crore
Growth Prospect: 10% compounded annual growth
Sugar Based and related: 70% of the share =approx: Rs. 1750 crore
Expected Market = Rs. 1925 crore
We aim for a market share of 3%
So expected sales= Rs. 57.75 crores
Product average price= Rs. 3
Average Cost= Rs. 2.5
Volume Sales= 19.25 crores units
The volume estimates seem to be feasible considering the fact that
around 60% of the sales will be achieved from the urban market.

Overall Profit = Rs. 9.625 crores

CAAGS consultants gives a Go Ahead to sanction Rs 2 Crores

budget to the confectionery company