PULSE CANDYSales and Distribution

Assignment

Confectionaries Market and the Category Attractiveness

Overall sweet candy category pegged at Rs 6,000 crore, growing at 14% y-o-y

Rs 2,100 crore Hard Boiled Candy (HBC) segment is growing at 23%

Kaccha Aam (26%) and Mango flavour (24%) together claim 50% share in the HBC market.

According to Nielsen India, in this market, there are:- low entry-exit barriers Since the unit price is low, one has to sell large volumes Innovation and introduction of new flavours are two major

growth drivers Distribution plays a key role

D.S Group: Parent Company

Founded in 1929, the Dharampal Satyapal (D.S) group is involved in a variety of sectors like:-• Food Beverage, Hospitality, Agro forestry, Tobacco,

Packaging and Mouth fresheners. • Under its umbrella, it manufactures Catch spices, Pass

Pass mouth freshener, Rajnigandha Pan Masala as well as Ksheer dairy products.

• In its confectionary sector, it manufacturers Pass Pass Chingles and Pass Pass Pulse.

Their focus now is on developing the foods & beverages and the confectionery verticals.

Target market strategy

Initially Geographic Segmentation: Since Rajasthani and Gujarati

cuisines share a similar tanginess as Pulse, the company decided to test-market it in these states first.

Eventually Mass Market Strategy: Raw mangoes are relished by

people of all age groups and geographies in India, so there was no particular target group singled out for Pulse.

The candy, with its tangy taste cut across all age groups and thus it became a full-fleged launch eventually

Marketing Strategy

Market Pioneer Strategy The unorganised candy market in India is big, and no brand has

been able to break the tradition of flavour over brand, wherein customers ask for "orange, mango or mint wali" candy.

Pulse has changed that. It has taken the category from impulse-driven to Pulse-driven

Indian customers usually buys candy in single pieces, but in the case of pulse candy, consumers are buying in bulk—five to 10 in one go.

Target audience: In terms of the audience, Pulse’s consumption cuts across all

age group and in terms of the communication, the brand is targeting the youth, who can be anywhere between 15-35 years

Product Strategy In India, the common practice is to eat raw mango with

something tangy. Whether it is 'aam panna' or a slice of raw mango sold on the roadside, it is incomplete without the tang/spices. That's how the idea for Pulse was conceived.

Also since, straight flavours such as mango, orange and caramel were there in the market, innovation was needed.

Pulse is available in 2 flavours: Kaccha Aam and Guava Pulse is an innovative value-added candy, the experience of

eating which peaks later as you reach the powder filling. In order to give consumers a full mouth feel for a heightened experience, the company increased the grammage.

Product Consumption : eaten by people who smoke, as mouth freshners, given in place of change (money) or eaten just like that.

Pricing Strategy The candy market had started shunning the Rs 0.5 price

point a couple of years ago with big players such as Mondelez, Perfetti Van Melle, and Parle launching or re-launching their products at Re 1.

High raw material costs, fewer 50 paise coins in circulation, and the demand for higher margins by retailers were some of the factors that propelled the wave.

However at the time when Pulse was launched, 86% of the industry was at Rs 0.5 for a candy weighing anywhere between 2-2.5 grams.

The DS Group decided to go with Re 1 instead, and to justify the price, the weight was increased to 4 grams.

Sales & Distribution Strategy The key success factor for any low involvement-FMCG product is the

distribution channel. If the company can strengthen the products’ reach and visibility, the chances of it being accepted by the customers are high.

DS Group- the creator of Pulse, already had a strong presence at outlets through the strength of its flagship product – Rajnigandha (leading Pan Masala brand with over 70% market share).

Capitalising on the extent of their reach, the company was able to maintain a strong distribution hold for Pulse within a short span of time.

From a pan stall to a big retail shop, and from urban to rural areas, the candy was sold everywhere within the first few months of its launch.

More than 80% market coverage, frequent refillment, and overall tight distribution norms helped Pulse be available ate every nook and corner of the city.

Sales & Distribution Strategy Pulse today is available in over 850,000 retail outlets across

the country. The company has 30 depots, 160 super distributors and close

to 1,400 sub-distributors covering close to 9,500 villages. Every shop (panwala, kirana, chemists, tapri) is stocking PULSE.

The biggest problem companies face is that either their selling story for retailer is too complex or non existent. Pulse gave the retailers a perfect spiel to say to customers – “ Sir ek baar khaiye , iske beech me churan bhara ha, bahut acha taste hai”

Once the trials started gaining traction, the product strength took it forward. Word of mouth started catching up as most people started referring the candy to their friends and colleagues.

Promotion Strategy The makers of Pulse believe that it is one of the most successful

examples of brands built through word-of-mouth, with social media facilitating the reach.

While the company pushed the candy through in-store promotions and an outdoor ad at select locations in NCR, its fans were active in the online world.

The brand has, thanks to them, has a presence on all social networking platforms including Facebook, Twitter and Instagram. People even went to the extent of making ‘Pulse – Fan Communities’ on FB and making their own Pulse advertisements

In fact, the catchphrase on the outdoor ad - 'Pulse of India' - was also suggested by them.

The brand saw a lot of popularity on the digital medium. Celebrities and even consumers came out and made their videos about the product. Consumers owned the product which gave the brand a big boost and the product was promoted a lot through word-of-mouth.

MEMES

TWITTER

GIFS

Mouth shut.com Reviews

Packaging

In the candy industry, which lacks brand loyalty and most of the purchases made are impulsive in nature, packaging plays a vital role in the purchase decision.

Pulse candy with its bright coloured packaging not only increased its visibility but also attracted the attention of customers getting them to at least try the candy once (and eventually most of them became addicted to it, resulting in more sales).

Competitors (Marketing Mix)

Perfetti Van Melle 20% market share in HBC segment Alpenliebe which leads in the

caramel category , has 3 main products in its umbrella : Mangofills ,Chocoliebe and Creamfills

Strong distribution network, available near cash counters

High promotional budgets and communication strategy includes every kind of emotion from Fun to absolute bizarreness

Constantly innovating with recent entry into the Lollypop segment with Chupa Chups

Parle Mango bite is the main competition First company to introduce the raw

mango flavoured hard boiled candies in India

Good distribution system reaching 5.5 million retail outlets

Improvised product called “ Spicy Parle Kaccha Mango bite “ launched to regain the top position in HBC segment once again

Uses humor to convey its messages Overall it has 26% for Kaccha aam

and 24 % Mango flavour , put together command 50 % market share in the HBC market segment .

Competitors (Marketing Mix)

Kopiko Kopiko is the premium hard

boiled coffee candy with a distinct coffee flavour and it has two variants Cappucino and Espresso.

It has positioned itself as a toffee that “ Makes you stay awake “ , though it doesn't share a big market share , it does pose as a competitor to Pulse .

Local Substitutes The other major

competitors are many local substitutes of Pulse , with the same packaging style , thus it makes the consumer gets confused about the authenticity of the candy .

The main local brand that gives a tough competition is Chintu’s Beatss .

SPURIOUS PRODUCTS

Bibliography http://www.afaqs.com/news/story/47821_How-Pulse-candy-capture

d-the-market-The-Full-Story http://timesofindia.indiatimes.com/business/india-business/DS-Gro

up-to-take-on-Frooti-Maaza-with-Pulse-Mango/articleshow/54370947.cms

http://dsim.in/blog/2016/04/26/case-study-how-pulse-candy-made-it-a-success-and-reached-rs-100-crore-in-just-8-months/

http://forbesindia.com/article/real-issue/candy-rush-how-pulse-got-it-right/44039/1

http://m.dailyhunt.in/news/india/english/live-mint-epaper-livemint/parle-tries-to-claw-back-ground-lost-to-pulse-candy-newsid-54525540

http://www.youthkiawaaz.com/2016/08/is-pulse-candy-success-story-for-real/

http://www.exchange4media.com/marketing/ds-groups-pulse-candy-crosses-rs-100-crore-in-sales-in-8-monthsto-launch-tvc-next-quarter_64226.html#sthash.8MfXWUzy.dpuf

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