Transcript Branded Chocolate and Confectionery Industry of Pakistan

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
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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 20022008.
• 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
lines
Major Brands
Estimated annual
turn-over PKR
Estimated
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 PKR
Estimated 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 PKR
Sugar Confectionery
0.50-2.0 PPKR
• Coin barrier issue- “ bitter pill ” for manufacturer
0.25 paisa to 0.50 paisa
mid 80’s
0.50 paisa to 1.00 rupee
mid 90’s
Re. 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 > widespread 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: