Part I: An overview of Chocolate & Confectionery Industry of Pakistan Part II: Practical aspects of...
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Transcript of Part I: An overview of Chocolate & Confectionery Industry of Pakistan Part II: Practical aspects of...
Part I:
• An overview of Chocolate & Confectionery Industry of Pakistan
Part II:• Practical aspects of sales & distribution of
FMCG
Branded Chocolate and Confectionery Industry of Pakistan
2009
www.saifdewan.wordpress.comVia Google - Chocolate and
Confectionery Pakistan
Chocolate & Confectionery - Pakistan
• Chocolate and Confectionery Industry – An overview
• Close estimates of sales turnover- major players
• Characteristics, Distribution & Selling Strategy• Channels’ Margin• Popular Brands and Price points• Drivers, Challenges and trends
Overview of Industry• Enjoyed an emerging and growing trend in recent past• Yet its size and growth pattern is inconsequential to
Asia-pacific region• Average annual growth rate 6.5% to 7.5% during 2002-
2008.• Domestic brands dominates accounting for more than
85% market share.• Split into organized (branded) sector and un-organized
(generic) sector.• Branded sector – monopolistic in nature , with 9-10
prominent and active players• 80% industry share – being enjoyed by 5 players
Estimated Market Share % Company Major product
linesMajor Brands Estimated annual
turn-over PKREstimated Share %
Hilal Bubble, Candies, Jellies, Beans, Powdered Drinks
Ding Dong, Fresh up, Tulsi, Kopra, Limopani
Over 3.5 billion (only Choc. & Conf.)
26%
Ismail Industries Jellies, Candies, Chocolates, Lollypops, Biscuit & Snacks
Chilimili, Fanty, Now, Paradise, Bisconi & Snaccity
Over 2.8 billion(only Choc. & Conf.)
21%
B.P Sweets Jellies, Candies, Lolly Pops, Chocolates, Biscuits
Spacer, Dolphin, B.P Lollies, Dream Chocolate
1.7 billion 13%
Cadbury’s Chocolates (Countline & Moulded), Toffees, Chewable Mint candies
Dairy Milk, Velvet, Éclairs, Softmint
Over 1.5 billion 11%
Estimated Market Share %Company Major product lines Major Brands Estimated annual
turn-over PKREstimated Share %
Kidco* Bubbles, Candies, Lollypops, Chocolates
4ever, Centro, Punch Candy, Lollies, Cox
1.2 billion 9%
Mayfair Candies, Toffees, Bubble
Creamers, Tiger Bubble, Amrood candy, Café biscuit
0.8 billion 6%
Mitchell’s (only Chocolate and Confectionery)
Groceries( squashes, Jams , Jellies , Marmalades, Sauces, Moulded & Countline , Toffees & Candies
Milk Toffee, Fruit Bon Bon, Jubilee, Golden Hearts, Festival
0.70 billion 5%
DanPak Bubble Gum, Lollypops, Candies
Chini mini, Fresh ‘ O bubble, Choco Bisco, Milko sip
0.70 billion 5%
Sweet Hills Candies, Toffees Dr. Milk, NutKut, Love Candy, Cow
0.5 billion 4%
Total 13.4 Billion PKR
Characteristics:• Highly Price elastic• Bulk of sales concentrated in mid-price range products• Urban markets account for major share and also for a higher
penetration rate.• Price point range:
Chocolates 3-25 PKRSugar Confectionery 0.50-2.0 PPKR
• Coin barrier issue- “ bitter pill ” for manufacturer0.25 paisa to 0.50 paisa mid 80’s0.50 paisa to 1.00 rupee mid 90’sRe. 1/- to Re. 2/- late 2008
• Strategies to combat coin-barrier issue
Distribution & Selling strategy:
• Almost (75- 80)% sales come from W/S channel in general
• B.P and Hilal > WS driven > Media pull > wide-spread national distribution network over 250-300 towns > mass market products Re.1,2 and beyond > Cost leadership strategy > High Volume sales
• Cadbury’s , Candyland, Mitchell’s and Mayfair > retail inclined > building brands
Drivers, Challenges & Trend• Drivers: