Confectionary Markets in Rural India

7/30/2019 Confectionary Markets in Rural India

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AN ANALYSIS ON CONFECTIONERY

MARKETS IN RURAL KERALA

Dr.Mathew Joseph , Ms.Anney Chacko, Mr.Titty Benjamin


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WELCOME


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OBJECTIVES OF THE STUDY

To analyze :

The penetration tactics used by the confectionery MNC

in tapping the rural segments.

The leading confectioneries brands in rural segment.

The impact of confectionery advertising in creating pull

effect in rural areas

The purchasing styles of Rural consumers


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RESEARCH FINDINGS

Brand penetration:- Munch with their aggressive

campaigning they were able to capture and create Brand

space in the Rural Arena.

Television Ad Mera Crunch Mahan (munch as Ranischocolate)


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RESEARCH FINDINGS

Brand penetration:-

Cadbury India is also doing advertisement

stunts to capture the attention of ruralconfectionery customers.


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RESEARCH METHODOLOGY...

Method of Data Collection

Primary data : Interview method

( Personal interview were done to collect data from the

respondents)

Secondary data:

Technical and Trade journals

Reference book, magazine and newspaper

Articles from Web Resources.


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RESEARCH METHODOLOGY

Research Design

Mode of Sampling : Convenient Sampling.

Basis of survey: Kottayam, Pathanamthitta, Alleppey.

Survey Techniques: Direct Interview


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Universe

The population for our research was all the retailers and

the consumers of Kerala.

Sample Area

The three districts from Kerala Circle such as

Kottayam.

Pathanamthitta. Alleppey.


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Sample Size

Total sample size was 200 which included Retailers andConsumers.

Retailers 100

Consumers 100


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RESEARCH FINDINGS

Rural market share of confectionaries: - In the study it

was revealed that Cadbury India was losing the rural

market share to Nestle India.(Munch, Kit-Kat, Milky Bar )

Nestle India -> 40.62 %

Cadbury India -> 37.5%

other players (ITC, Lotte, Perfette, Parrys) ->21.88%.


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5-Star Campaign Ramesh-Suresh


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Trying to lure Consumers by

promotional strategies.


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RESEARCH FINDINGS

Brand conscious

Rural consumers are highly brand conscious in case of

the confectionaries.

Branded confectioneries- 78

Foreign confectioneries- 6

Any confectioneries- 16


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Market share & Preference:-In the consumer Survey it

was found that even though Munch was the most

popular product among the rural consumers, Dairy milk

was the most loved chocolate .In terms of chocolate content and taste 68 household

voted for Dairy milk , with 12 household for 5-star, 10

households for Munch, 8 households for Perk, and 2

households voted for Milky Bar respectively.

RESEARCH FINDINGS


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Brand Awareness

Out of the survey conducted on 100 retailers

conducted in a rural area it was found that 78 retailers

argued that the people are now better brand consciousand they demand better quality confectioneries while

rest of28 % retailers voted out stating that they didnt

feel a brand push

RESEARCH FINDINGS


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Promotion Strategy:-

86 households stated that television ads were the most

successful promotion methods,

14 households stated that they have known thesebrands only after seeing these brands in the shops as

display and after retailers suggesting them to purchase

and try the chocolates.

RESEARCH FINDINGS


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Chocolate sales:-Most of the retailers in the

rural market were successful in selling the

Branded confectioneries with a Sales Range of

Rs 300 to Rs.1200. at an average of Rs 700 perweek.

Its delightful to note that none of the retailers

had complaints about selling of these brandedconfectionery, although they demanded a

slight increase of the profit margin.

RESEARCH FINDINGS


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About 85% of the retailers said that their stock gets

exhausted within a week and the distributors are very

powerful in the rural locality. Their confectionaries in

the shop never get stock out. About 17% of retailers get their stock every fortnightly

and only 3% have trouble in selling out and they too

get their stock once in every month.

Most sold chocolates were

had a price tag of Rs 2,5,10.

RESEARCH FINDINGS


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Exploit growth opportunities across various

Confectionary Market segments in rural areas through

proper branding.

Devise market-entry and expansion strategies withintensified Advertising.

Understand the competitors operating in the Indian

Confectionary Market in rural areas.

FOR NEW ENTRANTSSUGGESTIONS


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Identify key growth markets for your products

from the region-wise market research.

Identify the strengths and weakness of key

players in this Industry by using SWOT analysis

of India Confectionary Market.

Based on the SWOT, develop business strategies

by understanding the trends and driving forceof Confectionary in market.

FOR NEW ENTRANTSSUGGESTIONS


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The Indian food distribution system is characterized by

a large number of intermediaries and relatively poor

infrastructure, such as transportation, storage, and

refrigeration facilities.

It has low levels of efficiency, with the costs of

distribution being rather high. Manufacturers and

importers will have to carefully look at this issue and

devise solutions.

FOR EXISTING PLAYER

SUGGESTIONS


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The Retailers are very happy because they never get

stock out. Thats all because of the integrated web of

distributors who are very energetic in placing up the

stock to the retailers. The confectionery company should be able to inform

all the retailers about any new product launches.

Attractive packaging is very important for the brand

image. Indians associate quality with good packaging.

Quantity, Quality, Price, Freebies, Packing

FOR EXISTING PLAYERSSUGGESTIONS


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Focussing on Children..


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Shifting focus to teens


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Catering to all consumer base.

CONCLUSION


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CONCLUSION

Confectionery consumers in rural Keralaare more brand loyal.

Some companies are aggressive in their

advertisements but not in placing thebrands across their customer.

Price, Quantity, Quality,

Freebies,Packing are the Importantfactors .


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The call of the hour for all the Confectionery

Companies are reaching the unreached

segments in India. RURAL MARKETING


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Thank

bbYou


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QUESTIONS??? ??

? ??

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TITTY AND TITTO BIMS

Documents

Confectionary Markets in Rural India