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An approach note for fruit based Confectionery
Group 9
Anjana Rao- PGPM508_36Suraaj Doshi - PGPM508_08
Ajit kumar- PGPM508_20
Gagan Seth - PGPM508_44
Chandra Verma - PGPM508_56
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Case FactsPilot Study in Maharashtra
Brand grew 20% in Maharashtra overits sales in previous quarter (Jan Mar)
Key StrengthsDemographic Advantages
3rd largest State by Area
2nd largest population base in the
country (around 100 Million)Diverse population mix(countrywide and urban-ruralsegment)
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Industry Analysis - Confectionery
y One of the largest and well developed among foodprocessing sectors
y Market Size in India - Rs25 00Crores (60% Urban)y 30% Chocolate based and 70% (Sugar and others)
y Highly competitive, low margin and high volumemarket
y Indian Confectionery market is forecasted to increaseby 10% for next 5 yrs
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Marketing strategy
Price -
Competitive FMCG Market
No Price IncreasePricing
Strategy
everage existingistri tion c annel
istri tionC annel
Place /Distribution
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Marketing strategy
Promotion
Dedicated budget for
New Ad CampaignAdvertising
Push strategy and
repositioning
Promotion
Strategy
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Strategic 3Cs for Confectionary market
The strategic 3Cs Customer , Competitors, Cost
Customer Price Sensitive
Wants a highly differentiated product to pay a higher price
Useful to target the segment offamilies with children andcollege-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 beachieved in order to attain cost effectiveness
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PLC - Extension of the mature phase
In the Confectionary market products seem to enjoy very longmaturity, if not immortality, with no signs of decline.Marketers to prolong the profitable mature phase for as long aspossible , using a range of extension strategies.Extending the product life span is the goal of many firms.
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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 croreExpected 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
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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
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Thank You