part i: an overview of chocolate & confectionery industry of pakistan part ii: practical aspects...
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Part I:
• An overview of Chocolate & Confectionery Industry of Pakistan
Part II:• Practical aspects of sales & distribution of
FMCG
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Branded Chocolate and Confectionery Industry of Pakistan
2009
www.saifdewan.wordpress.comVia Google - Chocolate and
Confectionery Pakistan
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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
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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
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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%
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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
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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
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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
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Drivers, Challenges & Trend• Drivers: