1. Commerce RPP
Research, Powerpoint Presentation and
Public Speaking
Topic: Confectionery
Industry
By:
Mansi Rughani

2. What is Confectionery???
• Confectionery is the set of food items that are
rich in sugar, any one or type of which is called a
confection. Modern usage may include
substances rich in artificial sweeteners as well.
• Generally speaking, confections are somewhat
low in micronutrients but rich in calories.
Specially formulated chocolate has been
manufactured in the past for military use as a
high density food energy source.

3. Sweetening Agents
• Confectioneries are defined by the presence
of sweeteners, usually sugars. Most common
is the disaccharide sucrose. Hydrolysis of
sucrose gives a mixture called invert
sugar, which is sweeter and is also a common
ingredient. Finally confectioneries, especially
commercial ones, are sweetened by a variety
of syrups obtained
by hydrolysis of starch, these include corn
syrup.

4. The confectionery
market in India
• The confectionery market in India has
undergone major changes and growth since the
opening up of the economy and liberalization of
the investment regime in 1991. India became an
attractive place for foreign investment and
several large multinational companies entered
the market for confectionery products.
• Sugar confectionery (candies and toffees) has
the largest share (50%), followed by
chocolate, (16%), and bubble gum, (10%).

5. • The organized confectionery segment in India segment is
dominated by the multinational companies; however, domestic
players are increasingly finding a prominent position in the
market. Cadbury India, Ltd. is by far the market
leader, followed by Perfetti Van Melle India, Ltd. and Nestle
India, Ltd. Other important players are Lotte India Ltd, Nutrine
Confectionery Co Pvt Ltd, Candico India Ltd, Parle Products Pvt
Ltd and Wrigley India Pvt Ltd.
• In the last two years, Malaysia and Singapore have been the
leading suppliers of confectionery to India in terms of both
value and volume. However, US confectionery exports to India
experienced significant growth from 2002-03 and more than
doubled in value and increased roughly 80% in
volume, Confectionery exports from Spain registered the
largest growth, increasing more than 500% in value and more
than twice in volume.

6. Brand and origin awareness
While domestically manufactured brands dominate the
market and consumers have general awareness about
them, foreign products and brands are becoming increasingly
known. This trend is particularly noticeable in the urban
areas and among middle and upper class consumers. These
can be summarized as follows:
• The urban market is brand conscious; the rural market is
price conscious.
• Products from SE Asia and South America are more oriented
to the mass market, while European and US products cater to
the upscale market segments. Imported products in general
are considered to be of higher quality than the domestic
ones.

7. • US brands are less known than European ones. Mars and
Hershey’s are the only US brand names with broader
recognition in India.
• The upscale niche market is focused on brand and image
quality. Consumers are looking for known brands with good
quality images. Swiss and Belgium chocolates are considered
the crème de la crème.
• Attractive packaging is very important for the brand image.
Indians associate quality with good packaging. Imported
brands are presented much better than Indian ones.

8. Pricing
• The Indian market is very price sensitive.
• Most confectionery brands of
Nutrine, Lotte, Wrigley’s, Perfetti, Candico, Parle, etc.
are from the Rs. 0.25 to Rs. 1 price categories. There
is big difference in the prices of domestic and
imported products. The general rule is that domestic
products are the cheapest. Then, there are different
ranges of prices for imported products, depending on
the brand, country of origin, and product itself. Asian
and South American products are usually moderately
priced, while European and US products are the most
expensive.

9. • An important factor that affects the price of the
products is the Central Excise Duty payable by the
organized/registered manufacturers is as follows. For
sugar confectionery (without cocoa), it is 8%
(recently reduced from 16%); for chocolate
confectionery, it is 16%.

10. PARLE
Parle Products has been India's largest manufacturer of biscuits and
confectionery for almost 80 years. Makers of the world's largest
selling biscuit, Parle-G, and a host of other very popular brands, the
Parle name symbolizes quality, nutrition and great taste. With a
reach spanning even to the remotest villages of India, the company
has definitely come a very long way since its inception.
Many of the Parle products - biscuits or confectioneries, are market
leaders in their category and have won acclaim at the Monde
Selection, since 1971. With a 40% share of the total biscuit market
and a 15% share of the total confectionary market in India, Parle has
grown to become a multi-million dollar company. While to the
consumers it's a beacon of faith and trust, competitors look upon
Parle as an example of marketing brilliance.

11. AVAILABILITY
• Today, the great strength of
Parle Products is the extremely widespread
distribution network. Even at the remotest
places you can buy Parle biscuits and sweets
from the local grocer. It has taken years to create this extensive
network.
• Parle’s sales force started with one salesman in Bombay and some
agents in few other cities. Gradually, Parle Products expanded.
• Soon sweets and biscuits were being sent by rail to
Calcutta, Delhi, Karachi, Madras and other major cities.
• As production increased, distribution was amplified. Full time
salesmen were appointed in different areas. Currently, Parle
Products has over 33, 00,000 distribution outlets.

12. History
In 1929 a small company by the name of Parle products emerged
in British dominated India. The goal was to spread joy and cheer
to children and adults alike, all over the country with its sweets
and candies.
A small factory was set up in the suburbs of Mumbai to
manufacture confectionery products. A decade later this factory
was upgraded to manufacture biscuits as well. Since then, the
Parle name has spread in all directions and has won international
fame. Parle has been sweetening the lives of people all over India
and abroad.
Apart from the factories in Mumbai and Bangalore, Parle also has
factories in Bahadurgarh, Haryana and Neemrana, Rajasthan.
These are the largest biscuit and confectionery plants in the
country. Additionally, Parle Products also has 10 manufacturing
units and 75 manufacturing units on contract.

17. Perfetti Van Melle
Perfetti Van Melle is a privately held Italian global
manufacturer of confectionery and gum. It was formed in
2001 with the acquisition of Van Melle of the
Netherlands, by the Italian group Perfetti of Italy and having
its corporate headquarters in Lainate (Milan), Italy.
Perfetti Van Melle bills itself as the third largest
confectionery manufacturer in the world after Kraft Foods
(owners of Cadbury plc) and Mars, Incorporated (owners of
Wrigley). It employs 17,000 people via 30 subsidiary
companies and distributes its products in over 130 countries.

18. Products
Some of the products they manufacture include:
• Mentos mints
• Airheads fruit chews
• Chlormint gum
• Happydent mint gum
• Golia liquorice gummy candy
• Alpenliebe caramel chews
• Big Babol gum
• Meller caramel chews
• Brooklyn Chewing Gum
• Center Fresh gum in India
• Chupa Chups[1]
• Smint
• Alpenliebe is the flagship brand of Perfetti Van Melle and a leader in the
confectionery market.

19. Alpenliebe
Alpenliebe was launched in India in December 1995 with a
distinct product proposition:
• The candy was an amazing mix of caramel, milk and butter
• It was the 1st deposited candy in the Indian market and
therefore the eat experience was most unique
Other than the Caramel flavour, Alpenliebe is currently
available in Cream Strawberry, Chocolate, Coffee and Cream
Banana flavours.
Looking back at the last 10 years, Alpenliebe has successfully
managed to capture the sweet tooth of kids, teenagers and
adults across various sections of society.

20. Alpenliebe has resided in the world of ‘irresistibility’.
- It’s a world where you give into temptation without any guilt
- It’s a world that lets you indulge unabashedly
- A world where you don’t need to justify pleasure seeking
Alpenliebe speaks to the ‘child in everyone’, one of the very few
candy brands in the Indian market that has successfully reached
out & connected with both kids as well as adults.
In the year of launch (2001) Alpenliebe become the market
leader with 46% market share, while the category at large was
de-growing. Over the last few years the brand has continued to
lead the market with over 40% market share. The Brand was
supported through above the line communication and simple
activation, promotions etc.
Maintaining the imagery whilst also making the brand more
endearing.

21. Lollipop has always stayed in the kids domain, almost a
birthright! It is a memory that every individual would have
consumed a lollipop atleast once in their life and truly relished
it. But somehow, as part of growing up, largely through
teenage, early adulthood and as full grown mature adults we
seem to have grown too big (read mature) to enjoy the simple
pleasures.
Alpenliebe Lollipop supports the ideas that simple childhood
pleasures and experiences can be re-lived even when one is no
more a child and thereby growing the audience base of lollipops
beyond just kids.

22. Alpenliebe MangoFillz was launched as a new proposition
under the Alpenliebe umbrella, and is a candy with liquid
Mango flavoured filling inside. The product launch is PVMI’s
first foray into the sizeable candy category of “virgin fruits”.This
is the first non-cream Alpenliebe candy.
Mangofillz has taken forward the overall brand platform of
‘irresistibility’ while keeping the focus on the ‘mango’ taste of
the product. Kajol, the Alpenliebe brand ambassador, is being
brought in to provide a connect with the parent brand and
bring in its heritage, while the communication itself remains
focused on the product and its own uniqueness, i.e. a pure
mango flavoured liquid-filled candy.

23. Big Babol
Big Babol was launched in India in 1994, since then it has become
one of the biggest bubble gum brands in India. Over the years it has
become a favourite amongst the kids all over the country.
Big Babol is available in Fruit Flavor and Ripe Mango flavour.
It is a brand which is known to have very yummy taste and you can
blow big bubbles out of it, and this comes with an added advantage
that bubblegum does not sticks to you face. It has been positioned
on the fact that how you can use big bubbles to your advantage and
make Big Babol “Bade Kaam ki Cheez”. Over time, especially with
the diametrically different communication route adopted by the
tagline ‘Bade…Cheez’, the main product attributes- that it blows the
biggest bubbles and is soft and non sticky has been established very
well.

24. Center Fresh
• Center Fresh, the flagship brand of Perfetti Van Melle's was
launched in 1994. It was the first liquid filled chewing gum
which has tantalized the taste buds of millions of Indians and
is a house hold name today. Over the years, Center fresh has
grown to become the largest selling gum brand in India.
It is available in Spearmint, peppermint and Sweet mint
flavours and in the Re 1 mono and 5 pcs Rs 6 stick.
• Currently Center Fresh is positioned on the platform of great
taste which make them prefer to chew than speak. Center
fresh truly Rakhe Zubaan pe lagaam

25. Conclusions
The Indian market for confectionery products has undergone
significant changes over recent years. While penetration and
consumption levels are still very low, overall sales, and
particularly sales of higher value premium products have
increased. The availability of imported products has also been
rapidly rising since India liberalized its imports regime in 2001.
Nevertheless, they are still very small leaving ample
opportunities for further growth.
• The popularity of chocolate products, particularly boxed
assortments for gifts, will continue to increase.
• The sugar confectionery will remain the largest confectionery
segment. We expect to see growth of new and novelty
products, such as mint and medicated confectionery (with
added vitamins and/or other minerals), as well as the new to
the country sugar-free confectionery categories.

26. • While the traditional targets for confectionery products have
been children and young people, increasing number of
marketers have seen growth opportunities in targeting the
adult consumer segment. This will lead to new products and
marketing strategies aimed at them.
• There will continue to be opportunities for new products that
appeal to the young consumer. The ever-present stimulus of
novelty and fashion, encouraged by continuing exposure to
western culture will keep the doors open for new products and
new suppliers.
• Marketing and promotion expenditures for confectionery
products will increase and distributors will require promotional
support from manufacturers.

27. Lets watch few
advertisements of
different
confectioneries….

28. Any Questions???