MANA SVAYUKTI

Introduction

Carton United Company Ltd.

For centuries, the signature of the man is always been

considered a mark of his commitment, way back in 1967 we
signed on our commitment to confectionary industry.

Today a good three and a half decades later the name Carton
United stands for a commitment to quality confectionary
products. It is the sign of trust that our customers place in our
product.

With nine state of art manufacturing plant equipped with the

latest in manufacturing technology, global scales, quality
systems that match the best in the industry and a talented
team of marketers. We offer great price propositions in the
Indian market.

With all the expertise mentioned above, Carton United

executive director Mr. Sandeep in a press release announced
the entry into new confectionery market mainly into two
categories viz. chewing gum and lollypops, so Carton United is
all set to rock the market with innovative product and
maintain the quality, brand name in the market of
confectioneries.

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The market overview

The 1600 crore confectionery market in India is expand like

never before as the local subsidiaries of global confectionery
majors Perfetti, Lotte , Cadbury, Wrigley’s and Nestle are
swinging into action with new strategies backed by investment
to grab a larger slice of the confectionery market.

The size of the organised is about 120000 tonnes. It is difficult

to estimate the unorganised market as a decade ago the
unorganised market was much bigger than the organised one.
It might have been 70: 30 and now it has declined with
organised moving to 75 % and the rest shared by the
unorganised.

The confectionery market in India is witnessing tremendous

activity. Regular product launches, high decibel media activity,
consumer promotions and trade promotions make this one of
the most hyperactive categories in the Indian market. The total
market is estimated to be growing at approximately at 12 % in
the year 2003. if the average annual growth is seen of the last
five years it is growing at the average rate of 8 % .

The only fact that is holding back companies in the last few
years is that the confectionery market in India is complicated
and has a very low penetration level. Where factors such as

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Bulk sugar prices, government policies and mass market

distribution play an important role in driving the volumes.

The confectionery market in the year 2004 is estimated as

follows;

Category Market size ( in tonnes )

Chewing gum 14000
Bubble gum 3350
Candies & toffees 68000
Breathe fresheners 7000
Other category 45650

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WHAT IS DRAWING MNC’S?

The confectionery market in India is huge with capital and

heavy investment being the major problem in the country
multinational firms decided to put their pocket share in India.

The market is huge and has intense competition now. The

influx of number of multinational firms into the business
(Perfettti India, general de confiteria and Warner& Lambert)
added an edge to the already intense competition for market
shares. These tactics have already claimed a few victims.
Parry’s confectionery, earlier the market leader in the sugar
boiled confectionery; the same has been faced by nutrine

The Who’s of the market?

Even though the unorganized sector is faring well it’s the big
brands who are making all the noises in the market. With
brand building being one of the primary concern to the
companies as more and more consumers even form the rural
market are shifting towards the organized and famous brand.
Some of the big fisheries in the market are

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Perfetti
The Company is a big giant and has a merger with van melle.
It has 11 brands in India, of which three are from van melle
and the rest from perfetti. The van-melle brands are marbles,
mentos and fruit tella. They are the leaders because of
continuous innovations, new products, new variants and new
promotions. They are the highest spenders in advertising.

The company’s brand in the lollypop segment is Alpenliebe,

Center Fresh, Chocotella, Mentos, Chlormint, Fruitella, Happy
Dent, Center Shock.

WRIGLEYS:
One of the worlds most renowned brands in the chewing gum
& bubble gum market with addition of Joyco brands.Wrigleys
have been able to add complementary confectionary products
to their portfolio & take advantage of their rhobust sales force.
Wrigley gum sales in India accounted for only about 3.5% of
the market. The acquisition boosted combined confectionary
sales to approximately 35%

WRIGLEY’S BRANDS
1. Pim Pom
2. Boomer

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3. Solano
4. Orbit(Sugar free)
5. Lo-Ta Bubble gum

CADBURY’S:
Cadbury India, The vunerable choclate & confectionaries
major in India is also eyeing the chewing gum market India &
is also bringing in some brands from WARNER LAMBERT’s
has launched HALLS, CHLORETS, CHICKLETS, ECLAIRS
which has stated to do well in the market.
CADBURY’S:
1. HALLS
2. CHLORETS
3. CHICKLETS
4. ECLAIRS

LOTTE which took over PARRY confectionery a few months ago

is also gearing up to launch its brands as it is already selling
coffee bite with the change in packaging. LOTTE’S Chewing
gum brands will take on brands such as BIG BABOOL,
BOOMER.
Growth in the market for our products (Chewing gum)

The Chewing gum & the lollypop market was hardly there a
decade ago. This market is not yet completely competitively
strong so there is scope for the new entrant to make a mark.

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This category is more profitable & has less players who are
there currently in the market are topping in the charts the
chewing gum market was 5000 tonnes in 1997-1998 & it is
more than 20000 tonnes now.

The lollypop market is considerably big but due to lack of

players in the market the consumers are not left with many
choices so the market is slowly declining but the potential will
always be there. The market is worth 8000 tonnes with a
single brand & other local players grabbing small share but
are still unsuccessful in satisfying the market.

The reason for lack of big brands might also have been the
excise duty which was doubled to 16% from 8% but now it’s
reverted back so the scope to enter is ready.

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The bad facts:

When the excise duty increased from 8% -16%, the
profitability of all major players were affected & there was no
enough money to be invested in advertising which plays a vital
role in sales of the confectionery market, many players lost
interest in the market and quit. They did not invest further.
The problem in the country is the price point. There are sort
of fixed price points for the confectionaries. This happens
because India is a mono piece market. Due to the affordability
factor there are people who can pay Re 1 & 50 Ps for a gum or
lollypop but they can’t pay Rs 5 or Rs 10 for sticks.
The problem here is the price is fixed at 50 Ps or Rs 1, one
may not be able to pass on the increase due to taxes to the
consumer. This means that one has to be cost efficient &
restructure your costing continuously to be profitable at the
moment you can have economy of sales you succeed in some
way to make money. But if you are not ready to invest for a
long term, not ready to restructure reengineer your product
then will not be profitable.

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WHY CONFECTIONARIES?

Even though the market in confectionaries is big there are not

established players especially in the segment we are trying to
get into that are chewing gums and a few players are taking
the advantage without much innovating which is our strength.
So the consumers has hardly any choices to make even
unorganized players are talking the undue advantages such
things & if we have the expertise such as brand image
distribution innovations along with creativity & looking at the
market opportunities confectionaries is the hot seat to get into
as we follow the business diversification strategy of
maximising profits & minimizing the losses.

The Indian confectionery market is segmented into sugar-

boiled confectionery, chocolates, mints and chewing gums.
Sugar-boiled confectionery, consisting of hard boiled candy,
toffees and other sugar-based candies, is the largest of the
segments and valued at around Rs 2,000 crore. The organised
segment is dominated by Nutrine Confectionery and Parry
Confectionery, apart from the Indian arms of MNCs such as
Perfetti India and Warner Lambert.

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In value terms, chocolate confectionery is the largest sector,

accounting for almost 60% of total sales. By volume, however,
sugar confectionery accounts for the majority of sales, with a
share of just over half (51%). Per capita consumption of
confectionery in India averages almost 5-6 kg

The competition in the Indian confectionery market

In the past, most of the Indian confectionery companies were

local players with the unorganised units dominating the
market. At present the domestic market is extremely intense
in competition. The presence of multinational companies,
global leaders in confectionery, large Indian companies and
small-time manufacturers have added to the competitive spirit

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in the Indian market. In this situation we look forward to

strengthening our new brand to the list.

The potential of Indian confectionery brands in the

competitive global market

The potential of Indian confectionery brands in the global

market is good there is a potential to export Indian
confectionery brands to the global market provided the quality
of the brands has international certification of ISO 14001,
HACCP, etc. Indian manufacturers will have to equip
themselves with these certifications.

India is one of the largest emerging markets, with a population

of over one billion. India is one of the largest economies in the
world in terms of purchasing power and has a strong middle
class base of 300 million.

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Change in the Indian consumer profile

2000 2002 2007

Population 846 1,012 1087
(Millions)
Population < 480 546 565
age 25
Urbanisation 35 39 44
(%)

Rapid urbanisation, increased literacy and rising per capita

income, have all caused rapid growth and change in demand
patterns, leading to an explosion of new opportunities. Around
45 per cent of the population in India is below 20 years of age
and the young population is set to rise further. Aspiration
levels in this age group have been fuelled by greater media
exposure, unleashing a latent demand with more money and a
new mindset.

The Indian Confectionary sector is the fifth largest sector in

the economy and creates employment for three million people
in downstream activities.

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The spread of confectionery products marketed on a health

platform continues to grow. Sugar-free chewing gum is well
established in many parts of the world, whilst demand for low-
fat, organic and natural confectionery products continues to
grow.

Another area of innovation has includes the development of

new flavors; demand for intense flavors has risen in sectors
such as chewing gum and mints, while more novel varieties
are still appearing across the industry as a whole.

Between 2006 and 2010, the confectionery market is forecast

to increase by over 16% in value terms Volume sales are
expected to amount to over 17.8 million tones by 2010.

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Critical operating rules in Indian confectionary Market

• Heavy launch costs on new products on launch
advertisements, free samples and product promotions.
• Majority of the product classes require very low investment
in fixed assets
• Marketing assumes a significant place in the brand building
process
• Extensive distribution networks and logistics are key to
achieving a high level of penetration in both the urban
and rural markets
• Providing good price points is the key to success

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CONSUMER CONTEXT:
A lot has changed in the confectionary market just of late as
consumers of today are demanding for more & more quality
products & innovation is what the doctor orders for. It is also
very important to be cost effective. So the fact still remains
that the basic Psyche of the Indian Consumer has changed &
he/she is looking for a stylish product which can be a good
value for money brand.
Having defined the competitive frame work, the next task
undertaken is analysing consumer in the market & the
outcomes were:
 Brand does matter.
 Consumer sees the innovative product
 Affordable & simplified price point.
 Power of media makes a statement.
 Taste is a very important parameter.
Packaging & adverting should be creative & innovative.

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STRATEGIC APPROACH:

With all the above reality as a backdrop, Carton United has

come up with suitable prolonged strategy for the confectionary
market.
 Intensive distribution strategy is the key.
 Provide consumers with good taste.
 3600 approach to marketing.
 Brand building is one of the major priorities.
 Keep innovating according to changing trends in the
market.

To compete against the renowned players in the Indian market

Carton United has come up with two confectionaries- Cranky
chews with attitude, Tammy – tangy taste with lollypop.

To make a name for them in the market & to do well Carton

United needs to use its expertise & work more on strengths &
competencies. To find ways of side stepping major players,
time & again by developing good products which add us to give
consumers value for money.

A innovative & a quality, stylish product in this market is not

an easy task as it should be tasty innovative & at an
affordable price.

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Targeting:
A set of buyers sharing common needs or characteristics that
the company decides to serve. After evaluating the different
segments for the product Cranky -“chew with attitude”. The
target customers are as follows:

Geographic (density)
Urban and suburban:
The potential customers for our product will be available in
these areas as it is mainly divided on the basis of population
as people here get attracted to lifestyle products and have a
special liking towards confectionaries such as chewing gum
and lollypop. As our product is new and trendy the
consumers of this segment will definitely try it out. Research
also suggests that confectionary mark though with lot of
brands has a long way to go and the best years are yet to come
and the major potential is in this area.

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Demographic
Age 18–25 Yrs
This segment of the age group is mainly college students who
are open towards new products and are aware of the news
products entering into the market. The lifestyle of this segment
is configured by studies, surfing, they are heavy mobile users,
outgoing and have a positive attitude towards life.
This segment also has the highest exposure to market trends
and technology. They have a positive attitude towards new
product in the market and free to try the product. Hence a
product with innovativeness, different taste and packaging will
always grab attention and act as an easy entrance into the
market.

Life style:
Metro Sexual:
Our products are for those people who are style conscious and
out going people. People who want to try out new things and
people who are more social and are not introverts. We also
intend to target the people who like to carry their cool attitude
everywhere. As we clearly say it makes you cool when one
uses the product

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Attitude towards the product:

The attitude towards the product is positive. The youth mainly
the age group from 18-25 are open towards a new product in
the market. They are not held back in trying a new product
which is carefully targeted towards them. Attracting them
needs advertising and unique branding and the availability
should be made at all the places.

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POSITIONING:
The way the product is placed in the minds of the
consumers is known as positioning.

CRANKY- “Go Crazy!”

The product will be positioned as a new and unique
product. It is positioned as a product which will spark in
the consumers an unusual excitement. Today, the youth
have a life full of activities. This product will act as one
which will give them a break from the usual routine work.
The feature of the product ‘combination of chewing gum
and poppers’ will make them taste a complete different
product which is unique from the other products currently
in the market.

The baseline
“Go Crazy!” meaning enough of the usual life its time to
take a break and take your senses to a different world.
We prefer to go with a baseline which goes perfectly with
the brand name and something which hooks into the
minds of the consumers and keeps them reminding about
the product.

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PRODUCT
CRANKY is a chewing gum with a unique feature of poppers
lying beneath it. Basically it is a refreshing agent with
poppers.
Cranky would be described into categories as follows:

Manufacturing process

Grinding, mixing, and drying the latex

 The natural and/or artificial gum bases are first ground

into a coarse meal and mixed to ensure uniform
consistency. The blend is then placed in a warm room to
dry for a day or two. During drying, hot air continually
passes over the mixture.

Cooking and purifying the base

 Next, the gum base is cooked in kettles at 243 degrees

Fahrenheit (116 degrees Celsius) until it has melted into
a thick syrup. To purify it, workers pass it through
screens and place it in a high speed centrifuge before
refiltering it, this time through finer screens.

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Blending additional ingredients

 The gum base is now ready for additives. It is placed in

kettles to be cooked, and additional ingredients are
stirred in by large steel blades. First, extremely fine
powdered sugar and corn syrup are added. Flavorings are
added next, followed by softeners. When the mixture is
smooth enough, it is rolled out onto belts and cooled by
being exposed to cold air.

Kneading and rolling the gum

 The next step is kneading. For several hours machines

gently pummel the mass of chewing gum until it is
properly rubbery and smooth. Large chunks are then
chopped off the mass, to be flattened by rollers until they
reach the proper thickness of nearly .17 inches
(about .43 cm). During this process, the sheet of chewing
gum is dusted with powdered sugar to prepare it for
cutting.

Cutting and seasoning the gum

 A cutting machine first scores the sheet in a pattern of

rectangles, each 1.3 inches (3.3 centimeters) long
and .449 of an inch (1.14 centimeters) wide. The sheet is

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then put aside at the proper temperature and humidity to

"season."

Packaging the gum

 Once seasoned, the gum sheets are broken into sticks,

wrapped in aluminum foil or wax paper, wrapped in
paper, and put into plastic packs that are then sealed.
Put into boxes or plastic bags, the gum is ready to be
shipped to retail outlets.

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CORE PRODUCT:
The core product is the chewing gum. It is a refreshing agent.

Flavours: BLACK CURRENT, COOL BLUE & STRAWBERRY.

BRAND NAME:
The brand name coined is CRANKY, Go Crazy!
Launch:
We would be running a ramp in the happening areas such as
commercial streets, college streets in the major metropolitan
cities with models chewing the gum while walking on the ramp
which will be a teaser because at the end of the show all the
models will come together and give a message stating that
“watch out for the next time” which will increase curiosity
among people. The next time the models carry out the same
activity but at the end they come and start giving out free
samples of our product.

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ADVERTISING STRATEGY:

Our products are new into the market with some innovative
features and are being positioned as trendy (cranky), as tasty
as never before (Tammy). Our advertising strategy also depicts
the same. We are using 360 degree approach for our
advertising.

The tone and manner will help associate the brand with the
Modern and urban lifestyle. The creative will be shot in such a
way that it gives product a trendy and new look.

Shock advertising:
This is the wacky way of advertising where in we would hire
some people, and they will be carrying our messages written
on their backs etc. This being a unique phenomenon would be
successful in drawing customers’ attention and would cost
minimal.

Petro – advertising:
We will be hiring space in the leading petrol bunks in the
metros for our displays.

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MEDIA STRATEGY:

Role of media:
 To make a dramatic and high impact launch.
 High visibility.
 Push brand image by the media vehicles
Some of the media used will be

PRINT:
The form of media will be used both for teaser, descriptive ads
and to build a strong brand image.

Strategy – “ Pulsing this is a way of scheduling which

produdes alternating periods of heavy followed by lower or no
activity periods. This strategy is used here because according
to the current market conditions news papers of this category
is not a conducive one, but since the product is a newly
launched we would be using it as a medium to spread
awareness in the initial stages and later on it will be used as a
supportive medium to television.

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News Paper:
Times of India, Dainik jagran, Deccan Herald, Hindustan
Times, will be used. The company will give out 100cc & 200cc
depending upon the prints. Ten days before the launch the
ads will appear in all these dailies, so that our urban and semi
urban people caught.
Later the ads will appear in the same national dailies in their
life styles supplement which comes out on Sunday. This will
be a reminder of the public.

Magazines
To provide the brand with initial market visibility some of the
leading magazines in Entertainment will be used. This will
give the brand an image we desire. As the product has style
we will have ads in Sports Star, Film fare, due to its high
circulation India Today will be used. The ads before the
launch will be teaser ads and which would convey the message
of Carton United entering into the confectionary market.
It will introduce Cranky to Indian publics as trendy and
stylish confectionaries. Later the ads will bring out the
product specifications. The ads in these will be lot more
descriptive with the innovative features highlighted. The ads
will be full page and will appear where the top stories feature
as and when the need arises.

Electronic Media:

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Strategy- “continuity” To maintain a definite sound level or

share of voice in the high clutter confectionary category this
strategy is used as we would like our consumers to see the ad
uninterrupted.

TELEVISION:
Sound site and motion will just be perfect choice for our
campaign. The TVC will feature on channels that have lot
urban and semi urban viewer ship. In keeping of the brand
image and TV format into consideration our ads will feature on
Entertainment, sports, music channels. The TV channels are
Ten Sports, ESPN Star sports, Channel V & MTV

Ten Sports, ESPN and STAR SPORTS

With so many cricket matches and cricked bring our favourite
game we would run our ads when India is playing, where are
English Premiership, Spanish La-Liga, Italian League, UEFA
matches this is because the viewer ship is high and our target

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customers watch these matches. We will also advertise on F1

race day, Wimbledon and US Open.

MTV:
Cranky & Tammy is for style & new look. Style can be best
associated with MTV style check. Thus we will be associated
with the show and thus gain maximum visibility with the
image of style.

RADIO:
Strategy: “Pulsing this is the most suitable strategy as this
will be looked upon as a supportive medium to television and
will share a equal role as print media.
We could feature our ads as per the plan on radio mirchi,
radio city which are the major radio stations.

Public Relations
At Carton United we believe that this form of publicity is best
suited for confectionary. Pre-launch excitement and buzz will
be created by a fill blown public relations program. Media
coverage on our 360 degree approach, process & people
behind Cranky. Public Relations will also be the first tool used
for the launch of Cranky. The coverage of the launch will be
massive with more than 12 stories and 3 cover stories in all
sorts of vehicle. Some of the stories covered will be on:

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Magazines
 Film fare
 India Today
 Femina
 Brand Reporter
 Pitch

Television:

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Press Release:
The four metros in India will be taken as the base and all the
media people will be called.
Pamphlets about the products will be distributed parallel to
this test samples will be given.

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MEDIA PLAN
MAGAZINES

Star dust:
Date Size Rate (Rs.)
1st Issue aug4 1 page 10,000

1st Issue Sept. 1 page 10,000

1st Issue Oct. 1 page 10,000
1st Issue Nov. 1 page 10,000

1st Issue Dec. 1 page 10,000

1st Issue Jan. 1 page 10,000
Total 60,000

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INDIA TODAY
Date Size Rate (Rs)
Aug 4 1 full page 65,000
Sep 11 1 full page 65,000

Oct 1 1 full page 65,000

Nov 14 1 full page 65,000

Dec 2 1 full page 65,000

Jan 9 1 full page 65,000

Feb 6 1 full page 65,000

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March 1 1 full page 65,000

April 3 1 full page 65,000

May 10 1 full page 65,000

June 5 1 full page 65,000

July 19 1 full page 65,000

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Total 7,80,000

Newspaper
Times of India
Date Size Rate
Aug 1 100 CC 1,20,000
Aug 7 100 CC 1,20,000
Aug 12 100 CC 1,20,000

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Nov 11 100 CC 1,20,000

Dec 25 100 CC 1,20,000

Dec 29 100 CC 1,20,000
Apr11 100 CC 1,20,000
May 10 100 CC 1,20,000
Jun5 100 CC 1,20,000
Jun 19 100 CC 1,20,000

Total 12,00,000

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Outdoor:
Bill boards and hoardings:
Locations No. of Period Size Rate per Total
Hoardings hoarding amount

10 14 3Months 10x12 1,10,000 15,40,000

Television:
Channel Rate/slot Number Number Amount.
of of days
ads/day
Mumbai
local
channel
Televisions
at Railway
station

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Radio

STATIONS RATE SLOTS DAYS AMOUNT

(Rs) (Rs)
FM 7,000 4 120 3,36,000

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