Key findings - Sweet Industry in India • India, One of the largest snack markets in world, has an market of
value $ 1 billion and over 4 million tons in terms of volume.• The industry has been growing around 16% for the last three years • Branded segment is growing around 25% per annum.• The Indian Sweet market is currently valued at around $664 million,
with about 70 per cent share ($ 461 million) in sugar Confectionery and the remaining 30 per cent ($ 203 million) in Namkeen confectionery.
• The organized market for confectionery in India is valued at Rs 2,000 crore. As per the study by Euromonitor, the Indian sugar confectionery market is projected to expand at a compounded annual growth rate (CAGR) of 10%.
• Growing population, rapid urbanization, changing consumer preferences etc are expected to keep the demand increasing in future too. With a well-integrated supply chain and a good marketing strategy, a tremendous opportunity lies for these industries industry in India.
Key findings Sweet Industry – User pattern in India
Sweet Consumption trends in India
Source: Financialexpress.com
Hyderabad stands in 7th Place of Consumption of
Sweets in India
India Retail Market (Overall) : By Category
Category 2006 2011 2016 CAGR (2011-16)
Food and Sweet 217 325 425 5.50%Apparel 25 35 50.2 7.50%
Jewellery & Watches 16.5 25.6 44.2 11.50% Consumer Electronics &
IT 16.5 22.7 42.8 13.50%
Pharmacy 8 13.9 23.4 11.00% Furnishings & Furniture 6.5 9.1 17.1 13.50%
Restaurants and Food Joints 4.6 8.8 15.8 12.50%
Footwear 3.6 4.5 8.3 13.00% Beauty Services 0.6 1.3 3 18.00%
Health/Fitness Services 0.4 1 2.5 20.00% Others 11 23 42.5 13.10%
Total (US$ Bn) 310 470 675 7.50%Source: Technopak Analysis: Emerging Trends in Indian Retail and Consumer: 2011
India Retail Market (Organized): By Category
Category 2006 2011 2016 CAGR (2011-16)Food and Sweets 2 9 34 30.00%
Apparel 3.5 5.5 8 8.50%Jewellery & Watches 1 2.5 7.5 25.00%
Consumer Electronics & IT 1.5 4 18 35.00%Pharmacy 0.2 0.8 4.5 41.00%
Furnishings & Furniture 0.4 0.7 1.2 12.00%Food and Beverage (Eating
Out)0.5 1.5 6 30.00%
Footwear 1 1.7 3.8 17.50%Beauty Services 0.2 0.2 0.5 20.00%
Health/Fitness Services 0.1 0.2 0.6 25.00%Total (US$ Bn) 10 26 84 26.00%
Source: Technopak Analysis: Emerging Trends in Indian Retail and Consumer: 2011
Objective of the Survey
• To compare pricing, packaging, taste, staffing, walk-in rate, sale rate, innovation and customizability, variety, most and least sold out product or type with the said client as compared to market competitors
• To identify problem areas and differences with the said client as compared to market competitors
• To identify problem areas store-wise• To gain feedback from customers in view point of value
parameters like price, taste, quality• To review client vision, mission and goals• To formulate guidelines for the rebranding project
Five Force Model
Industry
Buyer Power
Supplier Power
Threat of Substitut
es
Potential Entrants
• The survey was done on Porter’s five forces model, the competitor and new entrant strengths and replacing capabilities were analyzed with comparison to the said client. • The buyer power was analyzed as to what factors catalyze their act of buying sweets.• A threat of fading value was identified by threat of substitutes in the near/far future.
Survey Outline
- Competitors Shagun, Vellanki, Dadus, Almond House, Shubh Avsar and Emerald customers and outlets were surveyed, hereby they will be collectively called “Competitors”
- Client outlets an walk-in customers were surveyed in the same fashion, hereby they will be collectively called “GPR Outlets”
- The UDM’s were interviewed individually about their outlets, competitors , industry, vision and plans of expansion.
The following charts are a comparison of both GPR and Competitor outlets, the stores were rated on the on a scale of 1-5 ; 1 being very bad and 5 being very good. They were rated on the following parameters; • Price• Taste• Quality (freshness)• Sales service• Location• Variety• Innovation
Price
Emerald Almond House
Dadus Shub Avsar
Vellanki Shagun Pulla Reddy
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Taste
Emerald Almond House
Dadus Shub Avsar
Vellanki Shagun Pulla Reddy
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Sale Service
Emerald Almond House
Dadus Shub Avsar
Vellanki Shagun Pulla Reddy
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Location
Emerald Almond House
Dadus Shub Avsar
Vellanki Shagun Pulla Reddy
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
The following charts are the comparison of consumer opinions at both competitor stores and GPR outlets on an average;
The percentages are based on an average calculated from consumer opinions at all stores.
What are the reasons you choose this store ?- Quality, Taste , Well-known , Location , Recommended
Quality Taste Well-known Recommended Location0
5
10
15
20
25
30
35
40
45
Emerald Almond House Dadus Pulla Reddy
Key Findings- The said client brand runs on legacy, well-know
factor; in the long run the client brand value might depreciate because of its fading value proposition.
- The said client brand rates low on location when compared to other main competitors who are present in prime locations.
- The said client rates lowest on the taste parameter, the reasons for this are unknown.
- The said client is the least recommended outlet, possible reasons for it could be the lack of attractive packaging.
Do you think the price is worth it ?- Yes - No - Maybe
Emerald Almond House Dadus Pulla Reddy0
10
20
30
40
50
60
70
80
90
Yes No High
Key Findings- The buying category at the said client’s store is
most prominently middle class economic zone, the lowest prices in the market are still high for the community.
- Buyers at the competitor stores are upper middle and high class community, most likely because of the locations they are located and the client is not. At locations where money is not a primary factor.
- The buyers are conscious about what price they buy the product.
- The said client’s pricing is lower than 80% of its competitors.
Which of the following do you think lacks in store ?Service, Ambience, Good Packaging and Variety
Service Ambience Good Packaging Variety0
5
10
15
20
25
30
35
40
45
Emerald Almond House Dadus Pulla Reddy
- The said client fails largely in sales service, the bar staff is seldom responsive, interactive and knowledgeable lest compared to the competitors.- The said client also lacks a range of good
packaging.- The said client ranks low when creating a
wholesome customer experience when because of mundane ambience.
- The clients competitors rank high in sales service and variety.
What other categories or combos do you expect ? Cookies ,Savouries ,Pickles , Nothing
Cookies Savouries Pickles Nothing0
10
20
30
40
50
60
70
80
90
100
Emerald Almond House Dadus Pulla Reddy
What purpose do you usually buy sweets for ? Personal consumption ,Festivals, Gifting ,Distribution
Self Gifting Festivals Distribution0
10
20
30
40
50
60
Emerald Almond House Dadus Pulla Reddy
Problem Area• The current crowd at the client outlets range from 30-55,
the younger generation is off the hook.• The brand is not primarily available in varieties that are
appealing to North Indians, the crowd shifts to largely South Indian precisely only Telugu people which makes our products niche.
• There is a large gap between the management, staff and the customer which have to be bridged.
• The packaging is big lag due to use of multiple logos, no standard theme and design. Uniformity and consistency are far taken aback.
• The brand recall is relying on a single factor legacy, this has to be re-written to create a whole new experience and pass the pride factor to the end consumer.
Identifying GPR Existing Brand Values
Product Class Description
• Sweets• Savouries• Pickles
Quality • Value for money• Strong Pedigree
Latent • Relying in legacy and pride factor
• Very old-fashioned
Transforming GPR Existing Brand Values
Product Class Description
• Sweets• Savouries• Pickles
Quality • Value for money• Strong Pedigree
Latent • Relying in legacy and pride factor
• Very old-fashioned
Pure Ghee House to Traditional Snack House
Reinforcing Purity
Larger than Life
Consumer Buying Perception • Quality, Price, design are key factors considered
at the time of purchase. • Deck up for special occasions to look good so that
people look up to you. • Owning a product from us should be a status
symbol.
Highlights /Que from the SWOT analysis• Rebranding @ user friendly ( experience ,feel etc)• Targeting Young People• Need to focus on IT & ITES group• Tech presence
Communication challenge • Establish: Sweet as a need across all the age
groups • Create demand and generate image to the stores • People must identify with the Store as their ideal
destination. • To establish the factor of reliability & bonding with
the brand • To project as trustworthy brand and create
Goodwill.
Marketing Calendar
The way forward
For Image & Emotional Connect-
OOH & Radio
To Build Salience –Improve Shop VisibilitySelective OOH media
For Fueling Growth –Print & Web
Local Promotions – Cinema Screens
High dose of on-ground engagement with tying up with Radio for activations
New Concept Promotions
• Association of Pulla Reddy sweets with Park-Hyatt and Radison-Blu
• Internal Branding of Koneru Lakshmaiya University
• Involved in G.Pulla Reddy TVC Ideation