STRATEGIC MANAGEMENT FINAL

TERM REPORT

PREPARED BY:
ISMAIL ASIF
1

ARSHAD GHAZI

Market Research
Quantitative Research
For this report, we conducted a small survey from both the consumers as well as
retailers to know about consumer preferences and needs.
In this research a series of questions was being asked from 20 consumers & 5
retailers; the responses are as follows:

Responses from Consumer

Purchase Frequency
55%

20%
15%

Daily

After every 2
days

Once a week

5%

5%

Ocassion

Bulk Purchase

Driving Factors

40%
25%

25%
10%

3
Price

Taste

Availability

Packaging

Brand Preference
B.P
5%
Kidco
5%

Hilal
30%

Cadbury
35%
Candyland
25%

Influencers
Shelf Spacing
5%

Friends
40%

Advertisements
55%

Responses from Retailer

Frequent Buyers
75%

20%
5%

Kids

Youngsters

Maximum Sales

Adults
42%

23%
12%

Sales
Hilal
During School Days

Candyland

Cadbury

12%

kidco

11%

Others

During Vacations

New
Products/Promotions
Introduced

Ways of buying Stock by a

Retailer
Through Distributor

Through Wholesale Market

35%

65%

From the above research we found out following results:

1. The major buyers of confectionery products are kids and then youngster.
2. Most of the consumers consider taste, price and availability an important factor
while buying any confectionery products.
3. Advertisements are one of the emerging influencers in confectionery industry
but some of the consumers are being influenced by their friends or shelf
spacing.

4. Confectionery is a wholesale driven industry.

Business Scope
Business we are in
We are the largest confectionery company in Pakistan manufacturing a wide
range of confectionery, biscuits and snacks under the brand names of
CandyLand, Bisconni and Snackcity respectively.

Region:
We export to more than 30 countries around the globe
including USA, Europe, Australia, Africa, Far East and the Middle East and
have strong business relationships with customers in these countries for over
15 years. Our lasting relationship with our customers reflects our
commitment towards quality and the satisfaction of customers around the
globe.

Customer/End User:
The target market is hard to define, the primary reason being the huge
product portfolio having more than 120 products however company targets
kids that includes school going children till young adults(college and
university students).

Business Environment:
External Analysis
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Market Structure
End Users
Kindergarten
children

School
Students

College,
University
Students

Adults

Products
Jellies, Lolly
pop,
Candies,
Chew toffees,
Chocolates ,
Marshmallo
ws

Jellies, Lolly
pop, Candies,
Chew toffees,
Chocolates,
Marshmallows
, chewing
gums.

Jellies, Candies,
Chew toffees,
Chocolates,

Chew toffees,
Chocolates,

Channels
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Retailers

General/Super
stores,
Marts,
Canteens

Wholesaler

Distributor

Confectionary
Industry

Market Growth Trend

Market Share:

10

Hilal
26%

Others
29%

Ismail Industries
21%

Kidco
13%

Cadbury
11%

11

Market Size for Next 4 Years

2014
Sales in PKR 14.2
Billion

2015
15.1
Billion

2016
16 billion

2017
17 Billion

2018
18.1
Billion

2019
19.2
billion

Market Size for Past 4 Years

2013
2012
2011
2010
2009
2008
Sales in PKR 13.4 Billion 12.5 Billion 11.7 billion 10.9 Billion 10.2 Billion 9.5 Billion

Major Competitor:

Hilal
Cadbury
Kidco
Bp

Minor Competitor:

Mayfair
Mitchells
DanPak
SweetHills

Competition/ Segment Matrix

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Segments

Overall
%

Competition
Market Share
%

Children

Youngsters

Adults

Ismail Industries

21%

70%

20%

10%

100

Hilal

26%

55%

40%

5%

100

Kidco

13%

56%

38%

6%

100

Cadbury

11%

38%

42%

20%

100

Others

29%

59%

37%

4%

100

Historical Growth

6.40%

7.00%

5.1%

Projected Growth

7%

9%

5.5%

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Findings:
Children and Youngsters is the most attractive segment of
confectionery industry
Confectionery Industry is growing at the rate of 6.4% CAGR.
Hilal is the market leader of industry with 26% market share while
CandyLand has 21% of market share.
Sales are dominated by Canteens and Cafeteria of educational
institutes.
CandyLand growth rate in 2013 is 9% while their average last 5 years
growth is 22%.

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Competition; Products, Brands, Market

Share
Company
name

Major Product lines

Major brands

Estimated annual
turn-over PKR.

Share
%

Hilal

Candy, Bubble,
Jellies, Chocolates,
Beans, powder Drinks,
Supari

Ding Dong
Bubble, Fresh up
bubble, Tulsi,
AamRus, Kopra
candy Limopani

3.5 billion

26%

Ismail
Industries
Ltd.(Candyland)

Jellies, candies,
lollypops, Chocolates,
Biscuits, Snacks etc.

Chillimili, Fanty
candy, Now,
BisconiChocolito,
Cocomo, Snack
city, Sonnet

2.8 billion

21%

Kidco

Bubbles candies,

4ever, Centro-

1.7 billion

13%

lollypops, Chocolates
etc.

bubble, Lollies,
Punch candy,
Chox

Chocolates(Countlines
and Moulded) Toffees,

Dairy Milk
Chocolate,

1.5 billion

11%

Cadburys

15

Chewable mint
candies

clairs, Softmint,
Velvet

B.P sweets

Jellies, candies,
lollypops, Chocolates,
Biscuits, Bread,
Snacks etc.

Spacer, Dolphin
Jellies, B.P
Lollies, Dream
Chocolates etc.

1.20 billion

9%

Mayfair

Candies, Toffees,

Creamers,

0.8 billion

6%

0.70 billion

5%

Amrood candy,
clair, Cafe biscuit

Mitchells(only

Groceries ( Squashes,

Milk Toffee, Fruit

Confectionery &
Chocolates)

Jams, sauces,
Chocolates- Moulded
and Countlines ,
Toffees and candies

BonBon, Butter
Scotch, Jubilee,
Golden Hearts

DanPak

Bubble Gum, Lolly

Pops, Candies

Chini mini, Fresh

O bubble, Choco
Bisco, Milko Sip

0.70 billion

5%

Sweet Hills

Candies, Toffees

Dr. Milk, NutKut,

Love candy , Cow

0.50 billion

4%

13.4 Billion PKR

100%

TOTAL

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Changes and Effects

Drivers:
Until mid 80s chocolates were supposed to be the product of upper and upper middle
class segment. In 1983 Mitchells Jubilee was launched first time in Pakistani market at
Rs.3.50 per bar. Due to its attractive packaging, quality, affordable price and an intact
media support the brand received un-matched reception and became a success story in
Pakistani industry. The brand is still very popular among masses and available in three
different price points at Rs.2, Rs.5 and Rs.10. In early 2000 Cadburys introduced quality
products with affordable price. The launch of Dairy Milk (Rs.5/-), 5 Star (Rs.5/-), Velvet
(Rs.5/-) and Perk (Rs.3) with attractive dispensing-chillers was the turning and
revolutionary point for making chocolates the choice for every one. The role of
Cadburys for expansion of chocolate market in Pakistan will always be written in golden
words.

Challenges:
The most common challenges to this industry are soaring prices of raw material, high
excise and import duties on raw material, high entry barrier because of strong
monopolistic competition and influx of cheap imported brand through gray-Channels.

Trends:
Driven by marketing initiatives, consumer preferences are speedily changing in the
favour of chocolates. Independent retailers and wholesalers are still the largest channel
contributors however the role of International modern trade (Makro, Metro and
HyperStar) is growing at the increasing rate. Foreign or imported brands are successfully
targeting the
Lucrative premium segments in urban population. Nestle has recently revamp their sales
and distribution management system through appointment of one of the leading
distribution house in Pakistan. Large retailers and wholesalers have already started

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private imports by paying less import duties through tax evasions. The largest bakery and
confectionery chain of Lahore is also considering for launching their own chocolate
brands in a bid to grow their private label sales. Keeping these positive signs in mind one
could expect that future of Chocolate and Confectionery market of Pakistan is promising.

PRODUCT LIFE CYCLE STAGES

Sales

CANDYLAND

Introduction

Growth

Maturity

Decline

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Distribution Structure
Distribution Channel
% of Production
Wholesaler/ Distributor

60%

Retailer

30%

Modern trade/ High Potential Stores

10%

Distribution Share & Competitors Position

Total FMCG outlets

855,000

Candyland Outlet Coverage

350,000

Hilal Outlet Coverage

425,000

Outlet
Coverage

Shelf Share

Market Share
(Channel)

19

CandyLand

41%

55%

35%

Hilal

50%

75%

60%

Internal Analysis

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SWOT ANALYSIS

Strengths:
Own Research lab
Export to International Markets
Consistent Quality
High Brand awareness
Constant innovation
Weaknesses:
Tough competition in bubble gum segment
Lesser availability
Opportunities:
Industry growth
Rural area expansion
Threats:
Hial Market Leader
Price sensitive industry
Increasing sugar price

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Customer Buying Criteria

Relative Importance of Factors
Factors

Absolutely
Critical

Very
Important

Quite
Important

Price

Availability

*
*

Packaging

Taste

Nice
Not
Dont
to
significant Want
Have
it

*
*

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BUSINESS OBJECTIVES
Vision:
We aim to offer high quality products to our consumers by
remaining the most technologically advanced company in our field.
We strive to be brand leaders in all the categories that we compete
in. We wish to have a substantial presence outside of Pakistan,
through export and local manufacturing.

Mission:
We Strive to deliver to our consumers' consistent quality of products
which maximize our values and customers satisfaction. We are
extensively catering to the domestic markets and strengthening our
roots in international ones.
We Wish to consolidate and strengthen our position as the most
technologically advanced company in our field. We recognized the
importance of efficiency and creativity to achieve growth in a
competitive environment. We believe and optimally combine our
people, technology, management system and opportunities to
achieve profitable growth while providing fair returns to our
shareholders.
We realize our responsibility towards society and contribute to our
environment as good corporate citizen.

Companys Information:
The Company was incorporated in Karachi, Pakistan as a private
limited company on June 21, 1988. on November 01, 1989 the
company was converted into a public limited company. Principal
activities of the company are manufacturing and trading of sugar
confectionery items, biscuits, potato chips and cast polypropylene
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film under the brands of 'CandyLand', 'Bisconni', 'SnackCity' and

'Astro Films' respectively.

Questionnaire for consumers

Name

Sex: _ Female _ Male

Date of birth:

Occupation:

Q1- How frequently you purchase a sugar confectionery product?

a. Daily b. After every 2 days c. Once a week d. Bulk Purchase

Q2- Which brand you prefer first when you think of buying a sugar confectionery product?
a. Hilal b. Candyland c. Cadbury d. Kidco e. B.P Any other___________

Q3-What factors drive you most towards your choice?

a. Price b. Taste c. Availability d. Packaging

Q4-From where did you come to know about the sugar confectionery product you consume?
a. Advertisement b. Friends c. Shelf Spacing

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Questionnaire for Retailer

Shop name:
Location:

Q1. Who are the frequent buyers of sugar confectionery products?

a. Kids

b. Youngsters

c. Adults

Q2. Which sugar confectionery brands have maximum sales?

a. Hilal

b. Candyland

c. Cadbury

d. Kidco

e. Others (please specify)

Q3. When people buy sugar confectionery products what among the following options do they
prefer?
a. Price

b. Taste

c. Shelf Spacing

d. Availability

e. Packaging

Q4. Sales of pens/pencils are high during which period of time?

a. High during exams b. Stable throughout the year c. when new promotions are
introduced.

Q5. How do you buy the stock of Sugar Confectionery products?

a. Through distributors b. Through wholesale market

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References:
http://tribune.com.pk/story/634073/pakistan-among-top-five-growth-markets-formondelez/
http://www.slideshare.net/ataulhassnain/candyland-16572415

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