ABSTRACT

:
Candyland is a business unit of Ismail Industries, which has been operating since 1989 in confectionery. Our report analyses how Candyland is currently operating in the market, with a primary focus on its international business and its marketing strategies. Moreover, this report also suggests a new product for the company so that it can further increase its market share globally. Key words: Candyland, strategies, confectionary

The industry flourished under tariff protection and it has not only saved foreign exchange which would otherwise have been spent on the imports of such products but has also started earning the much needed exchange to the country. International buyers get skeptic due to the mentioned reasons. Inflation remains one of the top concerns in the country. It is located at Southern Asia. primarily because of rising world fuel and commodity prices. .Confectionary Industry of Pakistan (Overview): The Islamic Republic of Pakistan is a medium size. The branded confectionary market is very much price elastic and growing with the bulk sales concentrated in mid. out of which Hilal has the biggest market share of 26%.5 to 7.8% in 2008. Despite Pakistan’s confectionery industry has enjoyed an emerging and growing trend in the recent past yet its size and growth pattern has been far inconsequential compared to other countries of Asia-pacific region. and declining exports of manufactures. jumping from 7. The branded segment is more of monopolistic in nature which has nine players competing in the industry. Pakistan.price range products. Domestic brands dominate the market accounting for more than 85% of total value sales of the industry. Faced with untenable budgetary deficits.7% in 2007 to 20. The industry has grown with an average annual rate of 6.5 % during 2002-2008. has suffered from decades of internal political disputes. The industry as a whole has been divided into two broader sectors namely branded segment and the generic segment. and hemorrhaging foreign exchange reserves. A brief overview of major companies’ estimated annual sales in PKR (1 US$= 83 PKR). densely populated country with over 170 million people living there. high inflation. bordering the Arabian Sea. between India on the east and Iran and Afghanistan on the west and China in the north. This has also negatively impacted the country’s image. Chocolate and Confectionery industry has shown a satisfactory progress in recent years. low levels of foreign investment. The vast Middle East market is open for the sale of chocolate and confectionery and Pakistan has all the potentials to capture this market. an impoverished and underdeveloped country.

another confectionery company.  Compromising in product quality by reducing qty and/or quality of expensive raw material  By using close substitute that is available relatively at cheaper price as a replacement of expensive raw materials. The industry has faced “coin-barrier” issue in sugar confectionery products at least three times during last three decades when all key players unanimously agreed to increase their products’ price due to escalating prices of raw materials (first from 25 paisa to 50 paisa. to cater to lower priced segment. it recognizes the importance of efficiency and creativity to achieve growth in a competitive environment. in 2003 it launched FIRST. In order to overcome the problems stated above. than 50 paisa to Rs. 2 and 3 are popular price points for lolly pops and chocolates range. In 2002. Recently. unit size. it acquired a biscuit company from IBL (Meiji) and expanded its portfolio into biscuits under the brand name BISCONNI.1 to Rs. the pro= active companies like Candyland implement the following three kinds of strategies:  Reduce the no.in mid 80’s. 1 – in mid 90’s and lastly from Rs.Introduction Ismail Industries Ltd. With increasing competition from small-scale manufacturers. Candyland.50-1. Ismail Industries Limited has pursued a strategy of backward integration and portfolio diversification with the establishment of ASTRO PACK. a unit for manufacturing of Cast Polypropylene. biscuits and snacks under the names of CANDYLAND. They are the largest confectionery company in Pakistan manufacturing a wide range of confectionary.In Sugar Confectionery major running confectionery items fall into the retail price segment of Rs. It has state-of-the-art factories and the most sophisticated process technology in Pakistan. BISCONNI and SNACKCITY respectively. . However Rs. The Company manufactures high quality confectionery products under the brand name CANDYLAND. 0.2-in late 2008) whereby the active players of the industry were compelled to raise their prices not less than any thing but 100% because next jump to coin / price denomination was such that they had no way out. of units per pack.00. and packaging.

Products Offered By Candyland:  Candies: The company offers hard boiled. Mission Statement We strive to deliver to our customer’s products. which maximize value and customer satisfaction. we wish to have substantial presence outside of Pakistan. coated and uncoated in the company. Candyland realizes its responsibility towards society and contributes to the environment as good corporate citizens. through export and local manufacturing. We strive to be brand leaders in all the categories that we compete in. train and retain the best professionals in the field. . Twin Chews. filled and plain.  Chew Toffees Dewy Chewy. It employs more food technologists than any other confectionery company in Pakistan and has an extremely modern laboratory capable of developing innovative products and testing products and ingredients for quality and consistency.Ismail Industries believe that their people are the reason for its success. It ha also achieved ISO 9001-2000 certification benchmark.Candyland manufactures two main types of toffees.  Jellies There are two types of jellies produced. Deposited. They therefore continue to recruit. Vision Statement We aim to offer high quality products to our customers by remaining the most technologically advanced company in our field. Filled and laminated toffees for its customers  Toffees: . We are extensively catering to the domestic markets and strengthening our roots in international ones. Wicked Chew are a few products that the company makes under the Chew Toffees product line.

. the company can gain more orders. However. The kids are still unable to recognize the product in the country.  Marshmallows The company has done a good job while producing Twister. The company is currently exporting the following products:  Biscuits  Chips  Bubble gums  Marshmallows  Lollipops Candyland exports to countries like. The company has a lot of potential to export Marshmallows as people living within the national borders are still not so much aware of the product. The Export Manager of the company believes that lesser the price charged. Each container has 1300 packs which are worth US$ 30000/ container. South Africa. On an average. Middle East countries.  Lollipops Gum filled. Zimbabwe. Canada. plain and whistle lollipop are produced for the Candyland customers. 3-4 containers are exported on a monthly basis. USA. Candyland.Internationally Candyland is exporting products under the brand name. Candyland is currently exporting all B class bubble gums as they are low priced. it does not make great efforts to market the products in the international market(s). Australia. Afghanistan. Chocolates Enrobed and deposited are the two kinds of chocolates manufactured in the company. and many more.  Bubblegums Candyland proficiently produces liquied filled gums. mint gums and stick/ chewing gums. Strawberry filled and cone marshmallows.

human resource personnel is required and a lot of other matters involve huge costs and the volume that is to be sent is limited. The responsibilities and duties of the buyers and the exporter varies in each of the modes. CNF. There is a Clearing agent whose job is to clear the customs. The company has around 300 distributers internationally.69 billion. 4. The container is arranged by the buyer. So. and then the clearing agent gives the clearance of the exported product. The other party is known as the Nomination agent. The duties imposed vary from country to country. the company directly contacts various buyers and exports the product to them. it is the buyers’ way to sell the products. so the duty is paid. Sales & the Production Process Candyland’s annual sales are worth around Rs. 2=3% is the clearance cost on an average. The company is currently just concerned with the money they make by exporting to the buyers. which is around a 5% of the total sales of the company. Then.As mentioned earlier. A separate distribution channel has to be setup in the international market. The company does not market itself as marketing internationally requires huge investments. check all the documents once when he receives the details of the exporting containers. rather than properly market themselves and selling their products through an adequate distribution channel. There are three modes to exporting products to various countries that Candyland uses. . So. CIF AND FOB. it is only concerned is promoting its products to the buyers. the company exports to various buyers. They are as following:  FOB  CNF  CIF It is decided by the company which one is used after analyzing which country to export. And then the containers are transported to its destination.

Raw material prices and costs have increased drastically during the past few years so the cost has surely risen drastically. where the product is made. The company has faced problems to this reason. The company keeps a lead time of 15 days at least and a maximum of a month. if kept low. For example. The buyers give orders to the company. However. As a result. This buffer time helps them tackle unexpected situations in the country due to which an order might get late. Pricing Across National Borders The company believes that the products’ prices. the print media is then used to promote the product. prices for countries like Africa are kept low to gain maximum profits. . Means of Exports The mean of export depends on the country to which the product is being exported. Afghanistan contributes about 40-45% of the export sales of the company. Europe undergoes a premium pricing strategy and Middle Eastern countries undergo competitive pricing strategies. The export manager analyses the demand and send it to the factory. so it gets difficult to target kids. One problem in the Middle East countries is that cartoon characters are banned. it will lead to an increased no. products are also exported to Afghanistan through road. of orders. Whereas.Sales Orders The sales orders are taken from the B2B portals and trade shows in which Candyland participate.

The kinds are as following:  Shop to shop  Cash n carry in a wholesale shop. the retailer will purchase the product and take the product to the shops.Distribution Channel There are mainly three kinds of distribution channels that the company is currently using/ or is planning to use.  Product might be taken into a hyper market where no distributer acts in between. The choice of the network depends again on the country the company is exporting to. . Here.

Reference: Ismail Industries Annual Report 2009 Wordpress Saif Dewan Blog.wordpress. 2010 http://saifdewan.com/2010/02/05/global-top-10-chocolate-confectionery-brands-and-theirpresence-in-pakistan/ . Business Development Manager Retrieved: February 12. Muller & Phipps.

Sign up to vote on this title
UsefulNot useful