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ô:c Confectionery items include
sweets, lollies, candy bars, chocolate and other sweet items of snack food.
The term does not generally apply to cakes, biscuits or puddings which
require cutlery to consume, although exceptions such as petits fours
or meringues exist. Speakers in the United States do not refer to these items
as "candy."

American English classifies many confections as {
. The many categories

and types of candy include:

Gc ^ard candy: Based on sugars cooked to the hard-crack stage,

including suckers (known as a
  in British English),lollipops,
jawbreakers, lemon drops, peppermint drops and disks, candy
canes, rock candy, etc.
Gc 9udge: Although some people regard any soft, chocolate-flavored
confection as 'fudge', the name properly refers to a confection of milk and
sugar boiled to the soft-ball stage.
Gc Toffee (or Taffy): Based on sugars cooked to the soft-ball stage and then
pulled to create an elastic texture.
Gc Tablet: A crumbly milk-based soft candy, based on sugars cooked to the
soft-ball stage. Comes in several forms, such as wafers and heart shapes.
Gc Chocolates: Used in the plural, usually referring to small balled centers
covered with chocolate to create bite-sized confectionery. Chocolates
should consist of almost all chocolate.
Gc -iquorice: Containing extract of the liquorice root. Chewier and more
resilient than gum/gelatin candies, but still designed for swallowing. 9or
example, -iquorice allsorts.
^owever not all confections equate to "candy" in the strict sense. Non-candyc
confections include:

Gc Yastry: A baked confection whose dough is rich in butter, which was

dispersed through the pastry prior to baking, resulting in a light, flaky
texture; see also pie and tart.
Gc Chewing gum: Uniquely made to be chewed, not swallowed.
Gc rum/relatin candies: Based on gelatins, including gum drops,
jujubes, Turkish delight, jelly beans, gummies, etc.
Gc gce cream: A suspension of microscopic ice crystals in cream; also ice
cream cones.
Gc ‰arshmallow: "Yeeps" (a trade name), circus peanuts, etc.
Gc ‰arzipan: An almond-based confection, doughy in consistency, and often
formed into shapes mimicking (for example) fruits, which marzipan-
makers can then paint with food colorants.

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Àc Almond Chocolates
Àc Chewing rum
Àc Confectionery Shops and Distributors
Àc gce Cream
Àc ‰ilk Chocolates

Àc Almond Nut Chocolate

Àc Chocolate
Àc 9ruit Candies
Àc -icorice
Àc ‰ilk Toffee

Àc Candy Bars
Àc Chocolate Slab
Àc 9udge
Àc -ollipops
Àc Toffee

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The major players in the chocolate market are:

Àc Cadbury gndia -td.

Àc Nestle gndia -td.

They both account for 90% of the market share.

Other players are:
Àc · c  c{
The three layers of the alluring chocolate is a winner on its own
accord. 9irst the milk chocolate, a bite of the crunchy wafer and cream
and then the roasted hazelnut core. On top of that the glittery golden
package. The tempting sphere is the ideal choice for the top rung.

Àc Î c
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The not so sweet chocolate has been a worthy pick for the last 160
years. The Switzerland based brand was built in 1845. The brand has
contributed too many chocolate bars that are well known amongst all
ages. Black chocolate is its forte. Sold in over 80 countries, the brand
gives nothing short of quality.

Àc Ú c


gt hit the market pretty late. ^owever the milk chocolates produced by
the brand cannot be ignored at all. ruylian chocolates are a bit more
on the sweeter side and are appropriate for sweet lovers. gt even
abounds in variety and can be selected from a huge range of
assortments.

Àc § c‰ 


This is one of the high priced chocolates available in the market.
Satisfying the chocoholics for a century now, the ‰axinm¶s are a
symbol of elegance and class. The name itself has its reference in
9rance mythology. The brand is infamous for the series of assortments
that are highly exquisite. gt ranges from milk chocolates to black
chocolates and hazelnut milk chocolates
.
Àc Õ c{
‰ilk chocolates, black chocolates or white chocolates. Yick your choice.
Ducd¶O offers a range of compound chocolates for a variety of taste
buds. One can easily pick up a white chocolate if he detests bitter
taste. gf one prefers bitter to sweet, black chocolate is the ideal one.
^owever, milk chocolate will satisfy the quest for both bitter and
sweet.

Àc ë c

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This brand features wafer as an essential addition to its soft chocolate.
With a relatively average price, the brand widely reaches out to the
chocolate lovers. The bright packaging makes the chocolate worth the
bucks.
 Àc Ý c{ 
gf there is any chocolate that stands out from the rest, it is Dcolse.
What makes the difference perhaps is skillful packing and thus it has
been alluring the lovers round the world. The company originated in
Belgium and remains one of the most favorite chocolate brands.

Àc w ‰
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Yeople in US are strict admirers of this chocolate. The colorful display
of the candies is appealing to the eyes. The chocolate comes in
different colors like green and yellow and are coated with candies.
Each piece has the letter ¶‰¶ imprinted on it. There are a variety of
candies like milk chocolate, mint, dark chocolate and peanut
chocolates.

Àc m c 


As the name suggests, this chocolate originates from no place other
than Belgium. Belgium ranks amongst the world¶s foremost producer
of chocolates. The Belgian chocolates scores high on quality and taste.
The brand makes use of upgraded technologies to remain at par with
the other big names.

Àc · c


Toffifee provides a cheaper resort to people. The chocolate markets in
different flavors and has a classic essence. Even the ordinary flavor is
anything but ordinary. gt is rermany¶s largest chocolate production
base.

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1. Chocolate market is estimated to be around 1500 crores

(ACNielson) growing at 18-20% per annum
2. Cadbury is the market leader with 72% market share
3. The per capita consumption of chocolate in gndia is 300 gram
compared with 1.9 kilograms in developed markets such as the United
Kingdom
4. Over 70 per cent of the consumption takes place in the urban
markets
5. ‰argins in the chocolate industry range between 10 and 20 per
cent, depending on the price point at which the product is placed
6. Chocolate sales have risen by 15% in 2007 to reach 36000 tonnes
 according to one estimate. Another estimate puts the figure at 25000
tonnes
7. The chocolate wafer market (Ulta Yerk etc) is around 35 % of the
total chocolate market and has been growing at around 13% annually
8. As per Euromonitor study, gndian candy market is currently valued
at around USD 664 million, with about 70%, or USD 461 million, in
sugar confectionery and the remaining 30%, or USD 203 million, in
chocolate confectionery
9. Entire Celebrations range marketshare is 6.5%
10. The global chocolate market is worth $75 billion annually



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1. The chocolate market in gndia has only three big players, Cadbury,
Nestle and Amul
2. New brands such as Sweet World, Candico and Chocolatiers are
present in several malls
3. The largest target segment for Cadbury is youth
4. Delhi-based Chocolatiers, started with a small shop in south Delhi¶s
Chittaranjan Yark and has now ventured into malls and multiplexes in
NCR, ‰umbai and Bangalore, with focus on high-end or designer
chocolates, a niche market of their own
5. Candico gndia is aiming for 400 locations across malls and
multiplexes in the country by 2010.



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1. Cadbury - Cadbury, 5 Star, Bytes (chocolate snack), Celebration,
Dairy ‰ilk, rems, Yerk
2. Nestle - Bar One, Kit Kat, ‰ilkybar, ‰unch, Nestle
3. Amul - Amul (Chocozoo, Chocomines)
4. Dairy ‰ilk is the market leader
5. 5 Star (heritage brand which came to gndia in 1969) has a
marketshare of over 14%

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Nestle, headquarters in Switzerland, was founded by ^enri Nestle in 1866. gt
is renowned as the world¶s leading nutrition and health based company.
Nestle grows is product line through innovation as well as renovation and
maintains a balance on its geo-environmental activities and product lines.
They opt for long term performance rather than short term goals. The
Company prioritizes in bringing the most relevant products to the consumers
according to their needs that will prove valuable throughout their life.

‰
 


   
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Nestle gndia -imited initiated its workings in gndia with the ‰oga unit in
Yunjab in 1961; succeeded by the Choladi unit located in the state of Tamil
Nadu. The ‰oga unit dealt entirely with the proper management of dairy
products whereas the Choladi unit diverted its interests to the tea industry.
The main purpose behind the set up of Choladi unit was to treat the tea crop
to produce soluble tea. Nestle gndia -imited is also the proud of owner of
Nanjangud unit in Karnataka; Samalkha unit in ^aryana; Yonda and
Bicholim units in roa; and Yant Nagar unit in Uttarakhand.

  
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Nestle gndia's popularity is visible in its financial figures published for the
second quarter starting from April and ending in June 2007. The net profit
for this quarter records a growth of 18.1%, amounting to Rs. 95.7crores,
and the net sales figure marks a rise of 23.2%; whereas the exports
delineate improvement by 15.6 %, which is calculated as Rs. 82crores. The
net domestic sales have also grown at a very fast pace to Rs. 756.9 crores,
showing a jump of approximately 24 %, when compared with the financial
figures of the same period, that is, from April to June in the previous year.



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Àc ‰unch
Àc Bar-One
Àc Kit-Kat
Àc ‰ilk
Àc Curd
Àc ‰ilky bar
Àc Yolo
Àc Candy



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* rlobally recognized as one of the largest and powerful food producers,
covering almost every country (factories and plants).

* Employs approximately 280,000 people globally.

* Yowerful brand positioning in the consumers mind.

* gt has a vastly diversified product portfolio containing approximately 6000

brands (beverages, ice creams, frozen food items, chocolates and biscuits,
pet care nutrition items, etc.)

* gt has established joint ventures with giants like Coca Cola, reneral ‰ills
and -¶Oreal that are helpful in providing knowledge on different technological
aspects.

* Consistently ranked as largest bottled water corporation that operates in

an environmental friendly manner.

* Top 50 list of 9ortune¶s µAmerica¶s ‰ost Admired 9ood Companies¶, and

ranked on top on Consumer 9ood Yroducts.

* Strong internal growth and emphasis on innovation internally.

* Strong cultural environment, that acts as a loyalty carrier for the

employees.

* Nestle has taken a visionary step as being one of the many companies that
represent and encourage globalization that has also become an identity for
its logo.

* Quality is a vital element regarding nestle products.

* -argest consumer products organization that operates globally.

* gt also sells professional brands to different customers such as colleges,

hotels, restaurants etc.

* Yowerful marketer, and never seizes any opportunity to embed the brand
image in the mind of the consumer. The quality of the Nestleproducts
embeds an element of trust in the mind of the consumer that
makes Nestle one of the powerful brands to be followed.

* Yroduces low cost products that give them an edge to their competitors. gt
also has low operating costs.

* rlobally, biggest ice-cream producer, having a market share of

approximately 17.5% (2006).

* The name Nestle also visualizes the high standard and quality of the
product.

* Customer base loyalty for Nestle is very vast and powerful.

* The decentralized culture in the organization encourages employees.

* gt has a dynamic and innovative approach when it comes to new trends

regarding the technology.

c
* ^overing over the stats of 2008, the food industry grew 8.9%
butNestle lacked the potential to raise their sales in the organic food division
that lay flat.

* Regulators like 9DA and A‰A (American ‰edical Association) are pressing
on the firm for removing tags that hold no ground such as µlow cholesterol¶
or µheart healthy¶. Yarents have also reported diabeticepidemic due to the
consumption of such goods, in children especially. Yromoting infant milk
products comparing to breastfeeding. Slaves in African countries that are
working under it. gt holds up a negative effect regarding the whole brand.
* Retailers do not get to set high margins to indulge more in sales.

* -ogistics cost is quite high.

* ‰any products are not understandable in different countries. gt did not

make much of an impact in 9rance with their -C-1 (food commodity).

* Coordination between country specific plants with the Center, due to which
some plants are running exceptionally smooth while operations in other
countries lack effectiveness.
* Transportation as well as storage (proper warehousing) problems.

* Supply Chain having a complex stature (gndia plant transitional

traceability).

* The immense diversification portfolio of the firm makes it impossible to run

every division smoothly.

* Russia being an unstable market for Nestle which cuts a big chunk
from Nestle¶s bite.

* gt is also perceived that Nestle puts profit first.



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* Due to the high intensity of the health conscious awareness in the society,
more health based products are required especially with incompromisable
quality.

* Can go into the anti-allergy products that are very common, such as
peanut free or gluten free products.
* They can also invest in snacks that would further diversify its product
portfolio.

* Yrovide incentives to the retailers to increase sales volume.

* Open cafes that would exclusively provide Nestle products.

* -C-1 having the opportunity of having a greater impact in rermany (2

years had them go for 60% of the market share), and being the established
market leader, they can establish more brands in the market.

* ‰iddle class share in most of the economies are growing much larger.

* Nestle gndia may hold the position of being the export hub due to the low
cost of labour comparatively to developed countries.

* gn Asian countries like gndia, Yakistan, Bangladesh; consumers are mostly

price conscious rather than health conscious. Nestle has an opportunity to
have extensive strategies implemented to gain the market in such countries.
* Developing countries have a higher rate of rDY than those of developing
countries, Nestle should enter in such markets as well.

* Recession has created such an impact that the market is struggling and
has almost got out of that recession that will surely increase the cycle of
cash flow which will be profitable for Nestle to cash in on such a time.


c
* Contamination of products should be regarded strictly (Cookie Dough,
‰arch 2009).

* The company has a not so pretty history with the 9DA. Yet 9ood
contamination 2007 (imported from China, the vegetables contained rat
poison).
* gnflation rise is giving birth to high prices. Raw chocolate prices are
jumping, along with the Dairy costs; which leaves heavy cuts in the margin
in order to make the customers brand loyal. They have also shrink the
packaging which is not really noticeable, so the customers are paying the
same amount for a lesser product.
* Competitors like Cadbury Schweppes, ^ershey¶s, Quaker, ^einz, Del
‰onte, Kellogg¶s, and Kraft 9oods are also well established. gt¶s a tough
market with a tougher competition for gaining market share.
* ‰arket is quite mature and the competitors specialize in a certain product
that can hit hard on Nestle. (Yogurt ‰arket US: reneral ‰ills)

* gn the gndian market, fresh food is preferred than ready-to-eat meals.

* gn still developing countries as well as underdeveloped countries,Nestle will

face a large competition in market both domestic and unorganized sectors.

* Yoverty sector in developing countries is also a lacking that must be

watched over for.

* ‰alnutrition and obesity are yet another burden faced by the developing
countries.
cc
Cadbury, the global leader in the chocolate confectionery market, began in
1824 when a young Quaker named John Cadbury opened up a shop in
Birmingham. John sold coffee, tea, drinking chocolate and cocoa at his shop.
Believing that alcohol was a main cause of poverty, John hoped his products
might serve as an alternative. ^e also sold hops and mustard. -ike many
Quakers John had high quality standards for all of his products.

At that time in England, Quakers were prohibited from attending university,

since it was affiliated with the established church, and their pacifist beliefs
kept them from joining the military. With few opportunities available,
Quakers often went into business-related fields and/or devoted their time to
missions of social reform.

By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking

chocolate. Soon John¶s brother Benjamin joined the company to form
Cadbury Brothers of Birmingham. The Cadbury brothers opened an office in
-ondon and received a Royal Warrant (one of many) as manufacturers of
chocolate and cocoa to Queen Victoria in 1854. Six years later the brothers
dissolved their partnership because of John¶s failing health and the death of
his wife. They left the business to John's sons reorge and Richard. John
devoted the rest of his life to social
work and died in 1889.

reorge and Richard continued to

expand the product line, and by 1864,
they were pulling a profit. Cadbury¶s
Cocoa Essence, which was advertised
as "absolutely pure and therefore
best," was an all-natural product
made with pure cocoa butter and no
starchy ingredients. Cocoa Essence
was the beginning of chocolate as we
know it today. The brothers soon
moved their manufacturing operations 
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to a larger facility four miles south of  .
Birmingham. The factory and area
became known as Bournville.

With Cadbury¶s continued success in chocolate, reorge and Richard stopped

selling tea in 1873. ‰aster confectioner 9rederic Kinchelman was appointed
to share his recipe and production secrets with Cadbury workers. This
resulted in Cadbury producing chocolate covered nougats, bonbons delices,
pistache, caramels, avelines and more. Cadbury manufactured its first milk
chocolate in 1897. Two years later the Bournville factory employed 2,600
people and Cadbury was incorporated as a limited company.

During World War g, more than 2,000 of Cadbury¶s male employees joined
the Armed 9orces. Cadbury supported the war effort, sending warm clothing,
books and chocolate to the soldiers. Cadbury supplemented the government
allowances to the dependants of their workers. When the workers returned,
they were able to return to work, take educational courses, and injured or ill
employees were looked after in convalescent homes. During this period
trade overseas increased, and Cadbury opened its first overseas factory near
^obart, Tasmania. The next year Cadbury merged with JS 9ry & Sons, a past
market leader in chocolate.

Cadbury supported the war effort during World War gg by converting parts of
its factory into workrooms to manufacture equipment like milling machines
for rifle factories and parts like pilot seats for Defiant fighter planes. Workers
plowed football fields to grow crops, and the Cadbury St. John¶s Ambulance
unit helped people during air raids. Chocolate was considered essential for
the Armed 9orces and civilians. Rationing finally ended in 1949.

gn 1969 Cadbury merged with Schweppes to form Cadbury Schweppes.

Schweppes was a well-known British brand that manufactured carbonated
mineral water and soft drinks. The merged companies would go on to
acquire Sunkist, Canada Dry, Typhoo Tea and more. Schweppes Beverages
was created, and the manufacture of Cadbury confectionery brands was
licensed to ^ershey.

Today Cadbury Schweppes is the largest confectionery company in the

world, employing more than 70,000 employees. gn 2006 the company had
over $15 billion in overall sales. gn ‰arch of 2007, Cadbury Scheweppes
announced that it intends to separate its confectionery and beverage
businesses. With almost 200 years in the business, Cadbury Schweppes will
continue to prosper in the coming decades.

c

 

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Cadbury was the first company to include pictures instead of printed text
on chocolate boxes.

reorge Cadbury didn¶t want to take mothers away from their children, so
he developed a company rule that women had to leave work when they got
married. Each married woman was given a bible and a carnation as wedding
gifts.

gn 1886 Cadbury became one of the first firms to have dining rooms with
kitchens and food for sale.

A miniature metal animal (elephant, penguin, owl, fox, duck, squirrel,

rabbit or turtle) was given away with specially designed cocoa tins in 1934.
gn the same year, Cadbury's tokens, which came with packs of cocoa, could
be redeemed for lamps, kettles and saucepans.

So many children joined Cadbury¶s Cococub Club that it had 300,000

members in 1936.

Cadbury¶s World Visitor Center opened in 1990, welcoming 400,000

visitors in its first year.

Cadbury launched a ret Active program in 2003, helping 10,000 teachers

get in shape.

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Àc Chocolate
1.c Dairy mily
2.c 5 star
3.c Yerk
4.c Yicnic
5.c Bournville
6.c Silk
Àc Candy, gums and mint
1.c Clorets
2.c ^alls
3.c Bubbaloo
‰




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The purpose for segmenting a market is to allow your marketing/sales
program to focus on the subset of prospects that are "most likely" to
purchase your offering. gf done properly this will help to insure the highest
return for your marketing/sales expenditures. Depending on whether you
are selling your offering to individual consumers or a business, there are
definite differences in what you will consider when defining market
segments.

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The first thing you can establish is a category of need that your offering
satisfies. The following classifications may help.

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Àc 
 - Your offering is in some way important to the enterprise

mission, objectives and operational oversight. 9or example, a service
that helped evaluate capital investment opportunities would fall into
this domain of influence. The purchase decision for this category of
offering will be made by the prospect's top level executive
management.
Àc 
 - Your offering affects the general operating policies and
procedures. Examples might be, an employee insurance plan or a
corporate wide communications system. This purchase decision will be
made by the prospect's top level operations management.
Àc  
 - Your offering deals with a specific function within the
enterprise such as data processing, accounting, human resources,
plant maintenance, engineering design, manufacturing, inventory
control, etc. This is the most likely domain for a product or service, but
you must recognize that the other domains may also get involved if
the purchase of the product or service becomes a high profile decision.
This purchase decision will be made by the prospect's functional
management.

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Àc  
      - Your offering satisfies a purely emotional

need in the consumer. Examples are a mink coat or a diamond ring.
There are some products that are on the boundary between this
category and the 9unctional category such as a Rolex watch (a Timex
would satisfy the functional requirement and probably keep time just
as well).
 Àc  
 - Your offering meets a functional requirement of the
consumer such as a broom, breakfast cereal or lawnmower.


 

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Then you should establish what the need is and who is most likely to
experience that need. Your segmentation will be determined by a match
between the benefits offered by your offering and the need of the prospect.
Some "need" categories for segmentation include:

Reduction in expenses:
Yrospects might be businesses that are downsizing (right sizing),
businesses that have products in the mature stage of their life cycle or
individuals with credit rating problems.
gmproved cash flow:
Yrospects might be businesses that have traditionally low profit
margins, businesses that have traditionally high inventory costs or
individuals that live in expensive urban areas.
gmproved productivity:
Yrospects might be businesses that have traditionally low profit
margins, businesses that have recently experienced depressed
earnings or individuals with large families.
gmproved manufacturing quality:
Yrospects might be businesses with complex, multi-discipline
manufacturing processes.
gmproved service delivery:
Yrospects might be service businesses in highly competitive markets,
product businesses requiring considerable post-sale support or
individuals in remote or rural areas.

gmproved employee working conditions/benefits:

Yrospects might be businesses where potential employees are in short
supply.
gmprovement in market share/competitive position
Yrospects might be new entrants to a competitive market.
Need for education
Yrospects might be businesses or individuals looking for books on
business planning, or seminars on Total Quality ‰anagement.
gnvolvement with social trends
Yrospects might be businesses concerned with environmental
protection, employee security, etc. or individuals who believe in say
'no' to drugs, anti-crime, etc.
Specific - relating to product/service characteristics
Yrospects might be businesses or individuals interested in safety,
security, economy, comfort, speed, quality, durability, etc.

 { c  c 
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^aving determined the more general segmentation characteristics you can
proceed to a more detailed analysis of the market. There are literally
thousands of ways to segment a market, but the following are some of the
more typical segmentation categories.

 c!


gndustry by SgC code
This is especially beneficial for vertical market offerings.
Size - revenues, # employees, # locations
gn general if your offering is highly sophisticated, requires significant
resources or provides greater value based on volume, then the target
should be the larger enterprises.
Job position/responsibility
Examples of offerings might be planning software for managers or
cleaning agents for maintenance managers.
Climate
Examples of offerings might be dehumidifiers in areas near the ocean
or snow plows in northern areas.
Time related factors
Some services in this category are vacation related industries in
summer and tax planners in the spring.
-anguage
An example of a language specific service is a Spanish TV channel.
Status in the industry
You might want to target businesses that are the technology leader or
revenue leader or employee satisfaction leader, etc.

Accessibility
To minimize promotion and sales expense you may want to target
urban rather than rural or local rather than national prospects.
9uture potential
A good example is how Apple Computer supplied products to schools
at all levels to condition students graduating into the marketplace.
Ability to make a quick purchase decision
Targeting individual purchasers versus business committees can
significantly reduce marketing expense and increase the probability of
a quick close.
Access (or lack of access) to competitive offerings
 Cable TV business's significant investment in their service delivery
system has allowed a near monopoly for some time. gB‰'s service
reputation insured minimal competition during the mainframe days.
Need for customization
Offerings such as police cars, busses for municipalities and specialized
computer systems fall into this category.
Yroduct or service application to a business function
Examples are data processing, accounting, human resources and plant
maintenance.

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Yhysical Size
Offerings might be big men's clothing, golf clubs for shorter players,
etc.
Creation of or response to a fad
Examples are hula hoops, Jurassic Yark T-shirts, pet rock, physical
fitness, etc.
reographic location
‰arketers take advantage of location by selling suntan lotion in
^awaii, fur coats in Alaska, etc.
Time related factors
You may be able to target vacationers in summer, impulse buyers
during the holidays or commuters at 7A‰.
Demographics/culture/religion
Ethnic products would fall into this category.
render
Yroduct examples are scarves for women, ties for men, etc.
Age
Yroduct examples are toys for children, jewelry for women, etc.
Social status
This could include country club memberships, philanthropic
contributions, etc.
Education
Yroduct and service examples are encyclopedias, scientific calculators,
learning to read tools and financial counseling.
Avocation
This could include products for hunting, fishing, golf, art work, knitting,
etc.
Special gnterests
You could target cat lovers, science fiction readers, jazz music
collectors, etc.
Accessibility
 Because the individual is more difficult to reach you may want to
segment by urban versus rural, train commuters, people who read
Wall Street Journal, etc.
Access (or lack of access) to competitive offerings
Due to high investment capital requirements or timing of market entry
you may be able to capture a significant market share in a specific
geographical area. Examples might be a trash service, emergency
medical support, etc.
Need for specific information
Based on features or content of your offering you can target a market
segment. A product might be books on how to start a business or a
service might be seminars on how to quit smoking.
Need for customization
Yroduct/service examples are home decoration, fashion wear, personal
portraits, etc.
Need for quality, durability, etc.
Yroduct examples are mountain climbing gear, carpenter's tools, etc.
Degree of a product/service ingredient
Segmentation based on prospect preferences is common. An example
is dark chocolate for some tastes, light chocolate for others.

 { c {


c

 
{ c
Once you have isolated a specific segment of the market on which to focus,
then you can consider more subtle influences on the purchase decision.
Some of these are:

Yreference for channel of distribution

‰any prospects prefer to buy through a specific distributor or
wholesaler. 9or individuals this may be due to subtle, as well as,
economic reasons. 9or example, an individual prospect may
immediately think of Wal-‰art or ^ome Depot when considering an
offering like yours. A business often has a preference so they can have
a single communication point for all purchases. This also often results
in lower purchase prices.

Number of decision makers

When selling to consumers or businesses, the more individuals or
groups involved in the purchase decision, the more difficult the sale.
‰arketing costs for selling bread can stay low because one person
normally makes the purchase decision. Car purchases are more
complex because the purchase decision normally involves a husband
and wife. Business sales to committees often require months to
achieve a decision.
9inancial strength of the prospect
-ess affluent prospects may desire time payments versus a cash
purchase and Chevrolets instead of Cadillacs.

Quantity/volume requirements
Restaurants will want large jars of pickles while individuals want small
jars. Businesses use large amounts of electricity at predictable times.

Ability to use the offering

Trying to sell to a prospect who lacks either the knowledge or
resources to properly benefit from your offering will result in a 'no sale'
situation or an unhappy customer. The prospect should have
knowledge and resources such as time, equipment, facilities, personnel
and complementary products/services.

Commitment required
gf the offering requires a high commitment in terms of time, resources
or money by the customer then the target should be prospects who
'really need' the offering rather than prospects who get some, but not
a lot, of benefits.

Brand awareness/users
Examples are prospects who ask for gB‰ compatible YC's or Yitney
Bowes mailing machines or Winnebago R.V.s

Attitude toward a personality or enterprise

Reputation helps sell AT&T long distance service, gB‰ computers,
‰ichael Jordan tennis shoes, etc.
Attitude toward price versus value
9or example, purchasers of collectors items aren't price sensitive while
purchasers of commodity items are price sensitive.
Experience with other products/services your enterprise has offered
You are looking for a reaction like "g liked your first product so g'll try
your second."
Yrospect bias
Examples are, 'Buy USA', g want a car with a 'solid' feel,
fast cars, sweet wines,large print playing cards, etc.
Affiliation with other organizations
Such as the U.S. Chamber of Commerce, A‰A, gEEE, doctors,
attorneys, pastors, franchisors, entrepreneurs, etc.
After sale support expectations
gt is often beneficial to target prospects who have enough expertise
that they will require a minimum of after sale support.
  c {

{c c{
c
 
{c { c{


c
c
Another form of influence is how the prospect perceives your offering and/or
enterprise. gf you can determine the characteristics your prospects most
value in an enterprise they purchase from, you can identify those your
organization possesses and promote them to the prospect.

Unique employee skills, knowledge

Extensive experience with a specific market segment or field of
scientific inquiry can be a powerful promotional tool. 9or example if an
enterprise could sat, "Our scientists knows more about corn silk
genetic structures than anyone in the world" they would have a strong
sales statement.

Special relationships with distribution channels

Yroduct or service accessibility is a critical factor in sales success. gf an
enterprise could say, "Due to a unique relationship, the XYZ video
stores give us more shelf space than any competitor" prospects will
likely respond positively.

Customer service capabilities

Yrospects like to know that they can depend on post sale support from
the product or service provider. A statement like, "We have more
service outlets in New ^ampshire than any competitor" will help secure
sales.

Unique product forms

Credible uniqueness such as, "Our product is the only one that offers
dynamic digi-whirling" is appealing to the market.

‰anufacturing expertise
The market is always interested in purchasing from the "best". gf an
enterprise can confidently state, "We are the only enterprise that can
manufacture molecular engineered widgets", they have created an
image of being the "best".

-ongevity
Reliability is important. A statement like, "We have been in business
for 50 years, so you can count on us to be there when you need us" is
usually a strong selling point.

 { c{


c‰  c
c
9inally, a point to consider is, given the characteristics of your offering, what
type of decision maker will most likely be interested in purchasing from you.
gt may be beneficial to rank your prospects based on the following
classifications. While you may not be able to make this classification of the
prospect prior to the first contact, if your sales personnel are sensitive to
these characteristics it can strongly influence your sales strategy.

  c
 " 
" - don't rock the boat, whatever they purchase must be
consistent with their current way of doing things.

Àc They are most likely interested in products/services that are

improvements to existing offerings rather than something new.
Àc Once established as a customer they are seldom inclined to review
alternatives.
Àc Very negative to technically complex offerings or offerings requiring
extensive user education.
Àc Cost effective offerings are only of interest if they don't disturb the
status quo.
Àc They are likely to react positively to any volume purchasing
opportunities.


 " 
" - are willing to change, but only in small increments and
only in a very cost effective manner.

Àc Will consider new products/services but only if related concept has

been proven to be effective. ‰ore likely to purchase improvements to
existing offerings.
Àc Will probably want to review competitive offerings, but will gravitate to
best known offering with lowest risk decision.
Àc Negative to neutral when considering technically complex offerings or
offerings requiring extensive user education.
Àc Strongly influenced by cost effective offerings and/or 'best price'
opportunities


!  - regularly looking for new solutions, willing to make change (even
major change) if the benefit can be shown.

Àc Will usually consider new products/services even if the related concept

has not yet been proven to be effective, but only if the potential
benefits can be specified and understood.
Àc Wants offerings that make effective use of technology, but is not
interested in offerings just because they use a certain technology.
Àc Will always want to review competitive offerings, but will usually
choose the one offering the greatest benefit, even if there is some risk
involved.
 Àc Neutral to positive when considering technically complex offerings or
offerings requiring extensive user education.
Àc Usually concerned with keeping employees informed and educated, so
will often consider educational offerings.
Àc Strongly influenced by offerings that most closely deliver the 'end
results' desired, even if they are not the most cost effective.
Àc Often are on social trend bandwagons so react positively to offerings
that address these needs.

{

{ c 
!  - enamored with the benefits provided by high tech
solutions and any purchase decision will be biased by the technical content
of the offering.

Àc Usually consider new products/services even if the related concept has

not yet been proven to be effective.
Àc Often consider just because they use a certain technology.
Àc Will always want to review competitive offerings, but will usually
choose the one offering the most hi-tech features, even if there is
some risk involved.
Àc Consider themselves technically competent and will expect leading
edge use of technology.
Àc Yositive to fanatic when considering technically complex offerings even
when requiring extensive user education.
Àc Conversion costs usually not a major concern if technical benefits are
there.
Àc Not particularly concerned with keeping employees informed and
educated, so educational offerings are not of great interest.
Àc Strongly influenced by offerings that most closely deliver the 'end
results' desired, even if they are not the most cost effective.

 c    - consistently defines/designs solutions to their problems, likes

to acquire tools that help in the innovation process.

Àc Will usually consider new products/services, but the related concept

must have been proven to be effective.
Àc Often consider just because they use a certain technology that is
relevant to the development program they have underway.
Àc Will always want to review competitive offerings, but will usually
choose the one offering the most effective 'do it yourself' features.
Àc Usually consider themselves technically competent and will expect
very effective use of proven technology.
Àc Not especially inclined toward technically complex offerings, would
rather have user friendly, but thought provoking, offerings.
 Àc Conversion costs usually not a major concern if offering promises
potential for innovation.
Àc Usually concerned with keeping employees informed and educated, so
educational offerings are of interest.



c

cc ! c



c

1.c Cadbury is a company, which is reputed internationally as the

topmost chocolate provider in the world.
2.c The brand is well known to people & they can easily identify it from
others.
3.c Cadbury the world leaders in chocolate, is a well-known force in
marketing and distribution.
4.c Users have a positive perception about the qualities of the brand.
5.c Cadbury main strength is Dairy milk. Dairy milk is the most
consumed chocolate in gndia.
6.c By using popular models like Cyrus Brocha, Yreety Zinta and others
Cadburys has managed to portray a young and sporty image, which has
resulted in converting buyers of other brands to become its staunch
loyalists.
7.c Cadbury has well adjusted itself to gndian custom.
8.c gt has properly repositioned itself in gndia whenever required i.e. from
children to adults, togetherness bar to energizing bar for young ones etc.

c

1.c There is lack of penetration in the rural market where people tend to
dismiss it as a high end product. gt is mainly found in urban and semi-
urban areas.
2. gt has been relatively high priced brand, which is turning the price
conscious customer away.
3. Yeople avoid having their chocolate thinking about the egg ingredients.




1.c The chocolate market has seen one of the greatest increases in the
recent times (almost @ 30%)
2.c There is a lot of potential for growth and a huge population who do not
eat chocolates even today that can be converted as new users.



1.c There exists no brand loyalty in the chocolate market and consumers
frequently shift their brands.
Î c New brands are coming and existing brands are introducing new variants
to add up to an already overcrowded market.c

ôcô cc c
British candy maker Cadbury Y-C on Tuesday accepted and recommended to
shareholders Kraft's improved takeover offer worth $18.9 billion, potentially
ending a months-long corporate battle to create the world's largest maker of
chocolate and sweets.
The US food conglomerate said the board of Cadbury, maker of Creme Eggs
and Dentyne gum, had unanimously endorsed the offer worth 840 pence per
share, or 11.9 billion pounds in total.
The revised bid is for 500 pence cash and 0.1874 new Kraft shares for each
Cadbury share, still somewhat less than some analysts believed the
company is worth.
Kraft 9oods gnc.'s previous offer of 10.5 billion pounds ($17.1 billion) valued
Cadbury at about 770 pence, but was dismissed by the British company's
management as "derisory."
The combined companies would be the world leader in chocolate and sweets,
Kraft said, and No. 2 globally in the high-growth gum market.
"We have great respect for Cadbury's brands, heritage and people. We
believe they will thrive as part of Kraft 9oods," said Kraft's CEO grene
Rosenfield.
"This recommended offer represents a compelling opportunity for Cadbury
shareholders, providing both immediate value certainty and upside potential
in the combined company."
Cadbury Chairman Roger Carr, who had led a spirited defense against Kraft's
previous offer, said he believed the deal "represents good value for Cadbury
shareholders."
Kraft still has to persuade a majority of Cadbury shareholders to accept the
deal, and the door remains open until Saturday for The ^ershey Co. to jump
in with a rival bid.
Cadbury shares were up 3.3 percent at 834 pence following the
announcement.
Kraft predicted pretax cost savings of at least $675 million a year once the
combination has been working for three years. Tuesday was the deadline for
Kraft to raise its offer. Cadbury shares moved above 800 pence on ‰onday,
indicating the market was looking for Kraft to jump to that level or higher.
The British company had fought hard against Kraft's initial offer announced
in December, rejecting it as a "derisory" bid from an unfocused,
underperforming conglomerate.
The agreed price is 13 times Cadbury's earnings before interest, taxes,
depreciation and amortization; Cadbury had argued that similar recent
takeovers in the sector had been for 14 times EBgTDA or more.
Kraft may still have a battle winning endorsement from Cadbury
shareholders, and The ^ershey Co. has until Saturday to decide whether it
wants to make a rival bid.
9eb. 2 is the deadline for Kraft to win acceptance from holders of a majority
of Cadbury shares.
David Cumming, head of U.K. equities at Cadbury shareholder Standard -ife,
had said ‰onday that Kraft needed to aim above 900 pence to secure
support from long-term shareholders. But on Tuesday, he signaled the fight
was over. "g probably won't go against the view of Cadbury's management,"
he told the µBBC¶.
Kraft, based in Northfield, gllinois, had raised the cash portion of its offer
earlier this month after selling its North America pizza business to Nestle for
$3.7 billion.
The report of a deal drew a sharp response from 9elicity -oudon, a great
granddaughter of Cadbury's founder Egbert Cadbury.

 
^ershey 9oods Corporation is the largest U.S. producer of chocolate and
non-chocolate confectionery products,the company markets more than 50
brands worldwide. ‰ilton ^ershey established the ^ershey Chocolate
Company around 1900, after sellings caramel-manufacturing business
ecompany was located in the rich Yennsylvania countryside where there was
a plentiful supply of freshmilk. After much, developed his own method for
making milk chocolate. The experimenting, ^ershey ,‰ilk Chocolate bar first
appeared in 1894, and one of ^ershey Almond Bar and ^ershey g the most
popular items,^ersheys kisses, was introduced in 1907.^ersheys business
prospered during World Warn. The firm produced a specially formulated
chocolatebar for theU.S. government that would not melt in a soldier,
pocket,but would sustain mat soldier if no other food available.About
500,000 bars were produced each hour, twenty-four hours a day at the
^ershey factory. The ^ershey Company experienced healthy growth at the
close of World War D (Broekel 1982).
^owever, after World War D, under the conservative leadership of Yercy
Alexander Staples, the ^ershey Corporation had been through years of
stagnation. The company missed ideal opportunities to expand into
European markets, lost its market leadership position to ‰ars and had
difficulties sustaining new product entries

YRODUCTS O99ERED BY ^ERS^EYS

Àc Chocolates
1.c ^ershey¶s
2.c Reese;s
3.c ‰ilk Dud
4.c ^ershey¶s Kisses
Àc Yremium Chocolates
1.c Cacao Reserve
2.c Joseph Schmidt
3.c Dagoba
Àc Refreshment Yroducts
1.c gce Breakers
2.c Breath Savers
3.c Bubble Yum



ccc  c

STRENrT^
‰

c


¦ ^ershey is strongly associated with an image of high
quality and a broad and deep product line. ^ershey manages more than fifty
brand in the domestic market andhas built up a number of leading brand
names. Among the top ten brands ranked by dollar sales in 1998, five of
them belong to ^ershey.These leading brand names also create
opportunities for ^ershey's product Une extension, and in some cases,
royalties for its use on productsmade by others. ^ershey licensed its stable
of well-know brand names, including ^ersheys and Reese's, to other
companies for use on products ranging from cereals to icecream
^c


c‰

^ershey has a strict standard to measure
performance and an improved compensation program. ^ersheys
management team benchmarks are Earning Yer Share, 9ree Cash 9low, and
Economic Value Added. gts managers' compensations are tied to these
benchmarks. gn addition, ^ershey broadened its employee compensation
program in 1996. The program was changed from Key Employee gncentive
Yackage to ^SY growth, under which ^ershey granted its eligible employees
one time 100 stock options and made its employees become owners for the
first time. This partly explained the increase in ^ershey's sale, gn their
annual report of 1997, ^ershey's CEO attributed the sales growth to
employees' effort. ^ershey's employees have good morale in terms of
improving ^ersheys product quality and lowering cost.





¦ ^ershey dedicates itself to expanding market share in the
mature North American markets by introducing new brands. ^ershey had
one of the best innovation records with three successful introductions in the
United States and Canada during the 1980s: Skor (1883), BarNone (1987),
and Symphony (1989) (Yip, 1991).^ersheys managers proudly assert that
they have the industry's largest inventory of new products.gn 1996,
^ersheys successful launch of TasteTations brought a 65% retail
saleincrease for this product. gn addition, ^ershey also keeps innovating in
merchandising, which made its retail grow at 5.6% greater than the
category growth. ^ershey advertises its products by sponsoring
entertainment activities, especially movies and sports. gn 1997, ^ershey
sponsored Jurassic Yark and increased its seasonal candy sales.
c


c 


 ^ershey 9oods Corporation in general has strong
financial performance. gts profit margins ranged between 6.8% and 7.7%
from 1996 to 1998, slightly above the industry average of 7.0%. The
corporation's return-on-assets ratios increased from 8.6% in 1996to 10.0%
in 1998. gts total asset turnover ratios also increased from 1.25 to 1.3
during the same period, higher than the industry average 1.10. gts return-
oÄ-equity ratios alsoincreased and stood well above the industry average of
13.0%. One major concern about ^ershey's financial performance is the
corporation's use of debt. ^ershey's equitymultipliers in the period of 1996-
1998 were 2.74,3.86, and 3.26 respectively, which allwere higher than the
industry average of 1.9. These multipliers indicate that ^ershey used a
larger percentage of debt to finance its operations.
c

c
c
^ershey¶s most serious weakness is its international expansion strategy.
^istorically, most of ^ersheys acquisitions occurred in the domestic market,
while the majority of its divestiture is in international markets. ‰ars beat
^ershey almost in everyone of ^ersheys international markets. ^ershey has
tried to sell its products in ‰exico for decades; ‰ars's market share
surpassed ^ershey in the very first year it entered the ‰exican market. gn
Japan, ‰ars also surpassed ^ershey. Although ^ershey exports to 90
countries, exports accounted for only less than 4% of its 1997 total sales. gn
addition, ^ershey is the only confectionery giant that has no manufacturing
factories outside the U.S
.
‰

c 


 ^ershey¶s management lacks an international
mindset.The company has little knowledge of world markets (Brenner,
1999). gts Vice Yresident, appointed in 1993 and in charge of its
international operations, does not speak a second language. "^ow can they
really have hopes for global expansion when he can't even communicate?"
questioned Jeffery, a current consultant in the industry. gn 1998, ^ersheys
experienced big change in its management. Recently, eight top managers
were removed. gt will take some time for the corporation to adjust to
changes and react to markets.




c 


^ershey's packaging and handling distribution costs
are quite high. According to ^ersheys Annual report of 1998, there are some
higher packaging, handling and distribution costs associated with their
thematic merchandising strategy. The higher distribution costs related to the
diversity of ^ersheys product line continued to exert pressure on ^ersheys
gross margin. gn addition, ^ersheys manufacturing capacity is falling behind
market demand for its new products. Reese Sticks, introduced in 1998, has
been a very successful market for ^ershey. ^owever, ^ershey does not have
enough manufacturing capacity to produce allthe usual package types.
9urthermore, ^ershey's recently emerged technology-related problems
delayed the corporation's shipments and caused its earning to drop by 19%.
One major reason for this delay is ^ershey's lack of adequate facilities.
c


c
1.c gnnovations
2.c Emergence of global markets
3.c rlobal competition
4.c Cancellation of sugar price support


c
c
1.c Change in consumer lifestyle
 2.c ^igh substitutes
3.c rovernment regulation

  c
c
{

 c
Bakery products are an item of mass consumption in view of its low price
and high nutrient value. With rapid growth and changing eating habits of
people, bakery products have gained popularity among masses. The bakery
products which include bread and biscuit form the major baked foods
accounting for over 82% of total bakery products produced in the country.
The bakery industry in gndia enjoys a comparative advantage in
manufacturing with abundant supply of the primary ingredients required by
the industry.‰ajor types of biscuit popular in gndian market are rlucose,
‰arie, Cream, Crackers ,Digestive ,Cookies and ‰ilk .

The gndian confectionery market is estimately valued at approximately Rs 50

billion. The gndian confectionery market includes sugar boiled confectionery,
hard boiled candies, toffees and other sugar-based candies. Sugar boiled
confectionery had penetrated an estimated 15% of the households only,
suggesting a large potential for growth. Substitution products, chewing and
bubble gums are supported by ‰NCs major like Cadbury gndia) and Nestle
and high powered advertising. Ylaced at about Rs 3,250 million, the gum
and mint market is growing at a rate 10 to 15% annually.

The organized market is dominated by Yarry and Nutrine, Yerfetti gndia

(Alpenliebe), Warner -ambert; reneral de Confiteria has made their
presence felt in this sector.A large part of the confectionery industry in gndia
comprise of the local subsidiaries of global confectionery majors like Yerfetti,
-otte, Wrigley's and Cadbury.

The chocolate and confectionery category, the second largest packaged food
segment, has been growing steadily in all regions over the last few years.
rlobally, chocolate confectionery is the largest sector in terms of value,
accounting for almost 60 per cent of total sales.

The gndian confectionery market is estimately valued at approximately Rs 50

billion. The gndian confectionery market includes sugar boiled confectionery,
hard boiled candies, toffees and other sugar-based candies. Sugar boiled
confectionery had penetrated an estimated 15% of the households only,
suggesting a large potential for growth. Substitution products, chewing and
bubble gums are supported by ‰NCs major like Cadbury gndia) and Nestle
and high powered advertising. Ylaced at about Rs 3,250 million, the gum
and mint market is growing at a rate 10 to 15% annually.
The organized market is dominated by Yarry and Nutrine, Yerfetti gndia
(Alpenliebe), Warner -ambert; reneral de Confiteria has made their
presence felt in this sector.A large part of the confectionery industry in gndia
comprise of the local subsidiaries of global confectionery majors like Yerfetti,
-otte, Wrigley's and Cadbury.

The chocolate and confectionery category, the second largest packaged food
segment, has been growing steadily in all regions over the last few years.
rlobally, chocolate confectionery is the largest sector in terms of value,
accounting for almost 60 per cent of total sales

The gndian confectionery market is estimately valued at approximately Rs 50

billion. The gndian confectionery market includes sugar boiled confectionery,
hard boiled candies, toffees and other sugar-based candies. Sugar boiled
confectionery had penetrated an estimated 15% of the households only,
suggesting a large potential for growth. Substitution products, chewing and
bubble gums are supported by ‰NCs major like Cadbury gndia) and Nestle
and high powered advertising. Ylaced at about Rs 3,250 million, the gum
and mint market is growing at a rate 10 to 15% annually.

The organized market is dominated by Yarry and Nutrine, Yerfetti gndia

(Alpenliebe), Warner -ambert; reneral de Confiteria has made their
presence felt in this sector.A large part of the confectionery industry in gndia
comprise of the local subsidiaries of global confectionery majors like Yerfetti,
-otte, Wrigley's and Cadbury.

The chocolate and confectionery category, the second largest packaged food
segment, has been growing steadily in all regions over the last few years.
rlobally, chocolate confectionery is the largest sector in terms of value,
accounting for almost 60 per cent of total sales

   
 

     


- Candy, specifically sugar candy, is a confection made from a
concentrated solution of sugar in water, to which flavorings and colorants
are added. Candies come in numerous colors and varieties and have a long
history in popular culture.

The ‰iddle English word "candy" began to be used in the late 13th century,
coming into English from the Old 9rench çucre candi, derived in turn from
Arabic qandi and Yersian qand, "cane sugar."[1] gn North America, candy is
a broad category that includes candy bars, chocolates, licorice, sour candies,
salty candies, tart candies,hard candies, taffies, gumdrops, marshmallows,
and more.[citation needed] Vegetables, fruit, or nuts which have been
glazed and coated with sugar are said to be candied.

Outside North America, the generic English-language name for candy is

sweets or confectionery (UK, greland, Australia, New Zealand, South Africa
and other Commonwealth countries). gn Australia and New Zealand sweets
are, in normal usage, further categorized as either chocolate or lollies (for all
other non-chocolate candies).

gn North America, the UK, and Australia, the word lollipop refers specifically
to sugar candy with flavoring on a stick. While not used in the generic sense
of North America, the term candy is used in the UK for specific types of
foods such as candy floss (cotton candy in North America and fairy floss in
Australia), and certain other sugar based products such as candied fruit.

A popular candy in -atin America is the so-called pirulín (also known as

pirulí), which is a multicolor, conic-shaped hard candy of about 10 to 15 cm
long, with a sharp conical or pyramidal point, with a stick in the base, and
wrapped in cellophane.

 - Toffee is a confection made by caramelizing sugar or molasses

(creatinginverted sugar) along with butter, and occasionally flour. The
mixture is heated until its temperature reaches the hard crack stage of 300
to 310 °9 (149 to 154 °C). While being prepared, toffee is sometimes mixed
with nuts or raisins.

The process of making toffee involves boiling the ingredients until the mix is
stiff enough to be pulled into a shape which holds and has a glossy surface.
The resulting mixture will typically be poured into a shallow tray and allowed
to cool to form a sheet. Different mixes, processes, and (most importantly)
temperatures of toffee making will result in different textures and
hardnesses, from soft and often sticky to a hard brittle material.

A popular variant in the US is English toffee, which is a very buttery toffee

often made with almonds. gt is available in both chewy and hard versions.
^eath bars are a type of candy made with an English toffee core. Although
named English toffee it bears little resemblance to the wide range of
confectionery known as toffee currently available in the UK.

Another variant is Cinder toffee, also called honeycomb or sponge toffee,

which is an aerated version with bubbles introduced by adding baking soda
and vinegar while mixing. These react to form carbon dioxide, which is
trapped in the highly viscous mixture. gn the UK the most well known
honeycomb candy is the Crunchie bar. gn New Zealand this is called hokey
pokey.

A particular application of toffee is in toffee apples, which are apples on

sticks which are coated with toffee. Toffee apples are similar to taffy apples
and caramel apples(both names for apples which are covered in caramel).

gn the UK, toffee apples, sometimes called candy apples, are coated with
brittle candy similar to boiled sweets.

Toffee used in confectionery has many different forms and is mixed with
many different ingredients. Rum & Butter Toffee, Chocolate Covered, Vanilla
& Chocolate, Rum & Raisin, ^oneycomb.


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1.c Yerfetti Van ‰elle

2.c -otte

3.c Wrigley¶s

4.c Cadbury



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Yerfetti Van ‰elle S.p.A. is the world's sixth-largest candy and confectionery
producer and number two in Europe. Representing the combination of gtaly's
Yerfetti with the Netherlands' Van ‰elle, Yerfetti Van ‰elle produces and
markets a host of top-selling candy brands, including ‰entos, 9ruittella,
Brooklyn, Alpenlieve, rolia, and 9risk. Yerfetti Van ‰elle has a worldwide
presence, with factories in gtaly, the Netherlands, rermany, Spain, and
elsewhere in Europe, as well as manufacturing sites in the United States,
Brazil, Turkey, gndia, China, gndonesia, and Vietnam. The company has also
announced its intention to begin manufacturing in Russia in 2005. Sales of
the privately held company's products reach more than 130 countries.
Yerfetti Van ‰elle operates dual headquarters in -ainate, gtaly, and Breda,
the Netherlands. The company's sales were estimated to top EUR 1.3 billion
($1.6 billion) in the mid-2000s.
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The merger between gtaly's Yerfetti and Van ‰elle of the Netherlands in
2001 created one of the world's top confectionery companies, with a rank of
number two in Europe and a global ranking of number six. The merger
cemented the friendly relationship that existed between the companies for
some two decades and had led Yerfetti to become a major shareholder in
Van ‰elle by the early 1990s.

Van ‰elle was the older of the two companies, tracing its origins to a bakery
founded by gzaak van ‰elle in Breskens, the Netherlands, in 1841. The
bakery was taken over by one of van ‰elle's sons, Abraham van ‰elle, in
1882. gt was under this generation that the family made its first entry into
the confectionery business. One of the bakeries employees came from
Belgium and knew how to prepare sugar in order to make candy. Van ‰elle
decided to begin cooking up candies besides its usual bakery goods. The
shop's "suikerballetjes" (sugar balls) quickly became a popular local favorite.
Yroduction remained on a small, homemade scale, however.

Abraham van ‰elle's son gzaak joined the family business by the turn of the
20th century. Recognizing the popularity of the bakery's candies, the
younger Van ‰elle decided to launch large-scale production of the
confectionery and invested in machinery and equipment to establish a full-
fledged candy factory in 1900. gzaak van ‰elle also continued to seek to
improve the company's products, establishing high-quality standards and
expanding and modernizing its production facilities.

The company also rapidly turned to the international market for sales. By
the 1920s, the company's products had found their way across the world,
reaching the Dutch gndies, South Africa, ‰orocco, Tunisia, and Algeria, many
Asian markets, and, closer to home, markets in Europe, such as rreece.
gzaak van ‰elle himself traveled extensively, seeking out new clients and
markets.

Van ‰elle's many travels had led him to discover many new candy and
confectionery varieties, which he brought back to the company. gn this way,
in 1926, the company launched production of toffee candies, an English
favorite. Van ‰elle soon made the recipe its own, and, working in its own
test kitchen, extended its range of toffee to include a variety of flavors,
including licorice. The company's recipe proved so successful that Van ‰elle
toffees became popular even in the United Kingdom.

A trip to Yoland in the early 1930s gave the company two new recipes. The
first was for a soft caramel-like candy containing real fruit flavors. The
second was a candy-coated peppermint-flavored caramel. These candies
later became known as 9ruittella and ‰entos, respectively, and helped
launch Van ‰elle into the ranks of the world's leading confectionery
companies.

By the 1930s, however, Van ‰elle was already a prominent confectioner,

and by 1935 the company had even purchased its own airplane, a rarity at
the time. ^owever, the rerman occupation of the Netherlands during World
War gg brought hard times to the company. Wartime restrictions on sugar
consumption severely cut into production. By the end of the war, bombing
raids had destroyed the Van ‰elle factory.

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Gc ‰entos mints
Gc Airheads fruit chews
Gc 9risk mints
Gc 9ruittella chews
Gc Vigorsol gum
Gc Vivident gum
Gc Chlormint gum
Gc ^appydent mint gum
Gc rolia liquorice gummy candy
Gc Alpenliebe caramel chews
Gc Big Babol gum
Gc ‰eller caramel chews
Gc Brooklyn Chewing rum
Gc Center 9resh gum in gndia
Gc Chupa Chups[1]
Gc Smint

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*c The marketing people identify different ways to segment the market &
develop profiles of the resulting market segments.

*c Yroducts which Yerfetti offers in the market are very universal on the
basis of consumption.

gn YV‰ there are no issues regarding reographic or Demographic

segmentations. But taking in consideration some important Ysychological
bases of segmentation Yerfetti have modified many existing & also
developed new products.



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†c ‰arket segmentation reveals the firms market segment opportunities.
The firm now has to evaluate the various segments and decide how
many & which ones to Target. This is the place where company uses
its Targeting strategies.

†c Yerfetti is the producer of various kinds & types of gums i.e. chewing
gum, bubble gum & funtional gum which ultimately targets the
 unproductive consumers i.e. consumers from the age group from 5
to16

†c Where as now-a-days almost everyone likes to consume such products

and therefore we can call it as an universal targeting strategy.

†c ^owever the concentrated marketing segment which will be the young

population which includes School-kids, Collegians, Bachelors, etc.

According to the statistics the company has«

†c 5,000 distributors service.

†c 700,000 outlets across the country.

†c 40% of the volume from towns.

†c And now eyeing new retail options like juice

corners, fruit stores & vegetable

vendors.

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*c Authentic product position strategy

*c Smart buying of TV time helps to get better deals without

compromising viewership.

*c Advertises on family channels specialy cartoon to reach out wider

audience.

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*c $Our growth is real it has come from volume & not
price hikes´
- ‰ilind Yingle(Sales ^ead YV‰ gndia)

*c gn the past 12 years YV‰ hasn¶t raised its price even once.

*c The entire confectionary industry is stuck at low price 25 ps, 50ps &
Re 1 due to intense competition.
*c gn the recent scenario climb in the price of raw material and petroleum
has to be absorbed by the manufacturer.



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*c YV‰g has created a ‰ulti-Tiered Distribution system.

*c Yroduct range is divided into 3 categories, which in turn have different

distributors.

*c A large chunk of confectionery retail trade is made up of retailers like

paanwallahs.

*c According to YV‰g strategy, when these retailers are visited thrice a

week,they tend to replenish supplies & pick up new variants.

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*c The Yromotion ‰ix consists of $ the specific blend of advertising, sales

promotion, public relations, personal & direct marketing tools that a
company uses to persue its advertising & marketing objectives´.

*c Yromotion mix is also called as marketing communications mix and

constitutes one of the 4ps of marketing mix ,i.e., Yromotion, the other
three being Yroduct, Yrice & Ylace

*c Yromotion mix tools used

*c Advertising :- gt includes any paid form of non-personal presentation

and promotion of ideas, goods, or services by an identified sponsor
such as Newspaper, Radio, Banners ^aordings etc.

*c Sales promotion :- Short ±term incentives to promote sales like

displays, samples, exhibitions, coupons, contests etc., constitutes
sales promotions.

*c Yublic relations :- gt includes building good relations with the public by

obtaining favourable publicity, building good corporate image &
handling or avoiding unfavourable publicity, rumours and events.

*c Yersonal selling :- gt includes direct personal presentation by company

sales force for sales and building customer relationship.
 *c Yublicity :- it includes non-personal promotion of demand for products
by obtaining publicity through news in media like TV, radio, newspaper
& magazines.

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†c YV‰ gndia has created a multi-tiered distribution system.

†c gt emphasized on product portfolio, distribution network, brand

building & product mix.

†c Yroduct range is divided into 2 categories, which in turn have different

distributors.

†c gnitially company offer a pack free of cost for promotion and increase
selling.

†c gts more concreted in advertisement to create brand value in mind of

customer.

†c gts took sponsorship in cricket match also for more advertisement.

†c YV‰ segmented its product according to psychological and

geographical

†c gts targeted the people , that child and youth up to 5-24 year to sell
their product.

†c gts manufactured the good which mostly like to child as sweet and
more chocolate and chewing gum for youth.

†c The margins for distributors(p2) & retailers were not increased due to
less demand in the market.

†c gt spend more on promotions & advertising.

†c The company gave free pack offer for every pack sold to have hold of
their distributors & retailers.

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There are only a few major confectioners, six to be exact. And currently
there¶s a four-on-one cage match underway to see who can come out on top
of the heap. The world¶s major players in candy are ‰ars/Wrigley, Cadbury,
Nestle, Kraft, ^ershey and 9errero. ‰ars bought Wrigley last year for $23
billion securing one of the largest brands in the business and the number
one spot in the industry. This year, the rest of the industry has set it¶s
sights on Cadbury. With Kraft throwing the first blow, Nestle, ^ershey and
9errero are now expressing interest in acquiring the historic British
confectioner. The reason it¶s turned into a war is because Cadbury is well
aware of it¶s worth and will not go easily.

According to ‰ark Scott¶s article for BusinessWeek, the candy industry is

consolidating and there are few places left to target for growth. ‰iller Zell
conducted a focus group earlier this year with shoppers aged 16-35 where
we asked about their behavior when it comes to making candy purchases.
‰ost of the respondents, event the teen group, admitted that candy
purchases are typically relegated to holiday and gum purchases. ‰ost
indicated that health was a consideration in their candy purchases and while
most candy is viewed as empty calories, gum is a necessary oral hygiene
accessory.
So where does this leave these confectioners? gn emerging markets like
gndia; which brought Cadbury a 16.1% revenue increase last year. Scott
reports that emerging markets have an $insatiable appetite for candy
[which] is fueling double-digit market growth.´ No wonder ^ershey and
Kraft want in on that action. The predominance of their candy sales are
domestic. The western hemisphere only saw a 5.2% increase in candy sales
last year. Kraft actually reported a 5.7% decline.

Scott goes on to detail why this fight for Cadbury is important to the other
companies and the candy business overall. ^owever, in the grand scheme
of things, it¶s interesting to watch the consolidation of this particular
category. One has to wonder, if over time it will continue to significantly
diminish in size, once the rest of the world adopts the western way and
decides that the joys of candy aren¶t worth the calories or cavities. Do you
think that the candy category will eventually go away as a major business
and be reduced to a segment within a CYr? Can you think of any other
products categories where major players dissolved to segments of larger
diversified consumer companies?