white thoughts

Presented By Anudeep Gupta Pabba

Research Report of Pullareddy Sweets

Key findings - Sweet Industry in India • India, One of the largest snack markets in world, has an market of

value $ 1 billion and over 4 million tons in terms of volume.• The industry has been growing around 16% for the last three years • Branded segment is growing around 25% per annum.• The Indian Sweet market is currently valued at around $664 million,

with about 70 per cent share ($ 461 million) in sugar Confectionery and the remaining 30 per cent ($ 203 million) in Namkeen confectionery.

• The organized market for confectionery in India is valued at Rs 2,000 crore. As per the study by Euromonitor, the Indian sugar confectionery market is projected to expand at a compounded annual growth rate (CAGR) of 10%.

• Growing population, rapid urbanization, changing consumer preferences etc are expected to keep the demand increasing in future too. With a well-integrated supply chain and a good marketing strategy, a tremendous opportunity lies for these industries industry in India.

Key findings Sweet Industry – User pattern in India

Sweet Consumption trends in India

Source: Financialexpress.com

Hyderabad stands in 7th Place of Consumption of

Sweets in India

India Retail Market (Overall) : By Category

Category 2006 2011 2016 CAGR (2011-16)

Food and Sweet 217 325 425 5.50%Apparel 25 35 50.2 7.50%

Jewellery & Watches 16.5 25.6 44.2 11.50% Consumer Electronics &

IT 16.5 22.7 42.8 13.50%

Pharmacy 8 13.9 23.4 11.00% Furnishings & Furniture 6.5 9.1 17.1 13.50%

Restaurants and Food Joints 4.6 8.8 15.8 12.50%

Footwear 3.6 4.5 8.3 13.00% Beauty Services 0.6 1.3 3 18.00%

Health/Fitness Services 0.4 1 2.5 20.00% Others 11 23 42.5 13.10%

Total (US$ Bn) 310 470 675 7.50%Source: Technopak Analysis: Emerging Trends in Indian Retail and Consumer: 2011

India Retail Market (Organized): By Category

Category 2006 2011 2016 CAGR (2011-16)Food and Sweets 2 9 34 30.00%

Apparel 3.5 5.5 8 8.50%Jewellery & Watches 1 2.5 7.5 25.00%

Consumer Electronics & IT 1.5 4 18 35.00%Pharmacy 0.2 0.8 4.5 41.00%

Furnishings & Furniture 0.4 0.7 1.2 12.00%Food and Beverage (Eating

Out)0.5 1.5 6 30.00%

Footwear 1 1.7 3.8 17.50%Beauty Services 0.2 0.2 0.5 20.00%

Health/Fitness Services 0.1 0.2 0.6 25.00%Total (US$ Bn) 10 26 84 26.00%

Source: Technopak Analysis: Emerging Trends in Indian Retail and Consumer: 2011

Objective of the Survey

• To compare pricing, packaging, taste, staffing, walk-in rate, sale rate, innovation and customizability, variety, most and least sold out product or type with the said client as compared to market competitors

• To identify problem areas and differences with the said client as compared to market competitors

• To identify problem areas store-wise• To gain feedback from customers in view point of value

parameters like price, taste, quality• To review client vision, mission and goals• To formulate guidelines for the rebranding project

Survey

Five Force Model

Industry

Buyer Power

Supplier Power

Threat of Substitut

es

Potential Entrants

• The survey was done on Porter’s five forces model, the competitor and new entrant strengths and replacing capabilities were analyzed with comparison to the said client. • The buyer power was analyzed as to what factors catalyze their act of buying sweets.• A threat of fading value was identified by threat of substitutes in the near/far future.

Survey Outline

- Competitors Shagun, Vellanki, Dadus, Almond House, Shubh Avsar and Emerald customers and outlets were surveyed, hereby they will be collectively called “Competitors”

- Client outlets an walk-in customers were surveyed in the same fashion, hereby they will be collectively called “GPR Outlets”

- The UDM’s were interviewed individually about their outlets, competitors , industry, vision and plans of expansion.

Outlets

The following charts are a comparison of both GPR and Competitor outlets, the stores were rated on the on a scale of 1-5 ; 1 being very bad and 5 being very good. They were rated on the following parameters; • Price• Taste• Quality (freshness)• Sales service• Location• Variety• Innovation

Price

Emerald Almond House

Dadus Shub Avsar

Vellanki Shagun Pulla Reddy

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Taste


Dadus Shub Avsar


0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Quality


Dadus Shub Avsar


0

1

2

3

4

5

6

Sale Service


Dadus Shub Avsar


0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Location


Dadus Shub Avsar


0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Variety

0

1

2

3

4

5

6

Innovation

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

The following charts are the comparison of consumer opinions at both competitor stores and GPR outlets on an average;

The percentages are based on an average calculated from consumer opinions at all stores.

What are the reasons you choose this store ?- Quality, Taste , Well-known , Location , Recommended

Quality Taste Well-known Recommended Location0

5

10

15

20

25

30

35

40

45

Emerald Almond House Dadus Pulla Reddy

Key Findings- The said client brand runs on legacy, well-know

factor; in the long run the client brand value might depreciate because of its fading value proposition.

- The said client brand rates low on location when compared to other main competitors who are present in prime locations.

- The said client rates lowest on the taste parameter, the reasons for this are unknown.

- The said client is the least recommended outlet, possible reasons for it could be the lack of attractive packaging.

Do you think the price is worth it ?- Yes - No - Maybe

Emerald Almond House Dadus Pulla Reddy0

10

20

30

40

50

60

70

80

90

Yes No High

Key Findings- The buying category at the said client’s store is

most prominently middle class economic zone, the lowest prices in the market are still high for the community.

- Buyers at the competitor stores are upper middle and high class community, most likely because of the locations they are located and the client is not. At locations where money is not a primary factor.

- The buyers are conscious about what price they buy the product.

- The said client’s pricing is lower than 80% of its competitors.

Which of the following do you think lacks in store ?Service, Ambience, Good Packaging and Variety

Service Ambience Good Packaging Variety0

5

10

15

20

25

30

35

40

45


- The said client fails largely in sales service, the bar staff is seldom responsive, interactive and knowledgeable lest compared to the competitors.- The said client also lacks a range of good

packaging.- The said client ranks low when creating a

wholesome customer experience when because of mundane ambience.

- The clients competitors rank high in sales service and variety.

What other categories or combos do you expect ? Cookies ,Savouries ,Pickles , Nothing

Cookies Savouries Pickles Nothing0

10

20

30

40

50

60

70

80

90

100


What purpose do you usually buy sweets for ? Personal consumption ,Festivals, Gifting ,Distribution

Self Gifting Festivals Distribution0

10

20

30

40

50

60


Problem Area• The current crowd at the client outlets range from 30-55,

the younger generation is off the hook.• The brand is not primarily available in varieties that are

appealing to North Indians, the crowd shifts to largely South Indian precisely only Telugu people which makes our products niche.

• There is a large gap between the management, staff and the customer which have to be bridged.

• The packaging is big lag due to use of multiple logos, no standard theme and design. Uniformity and consistency are far taken aback.

• The brand recall is relying on a single factor legacy, this has to be re-written to create a whole new experience and pass the pride factor to the end consumer.

Identifying GPR Existing Brand Values

Product Class Description

• Sweets• Savouries• Pickles

Quality • Value for money• Strong Pedigree

Latent • Relying in legacy and pride factor

• Very old-fashioned

Transforming GPR Existing Brand Values

Product Class Description

• Sweets• Savouries• Pickles

Quality • Value for money• Strong Pedigree

Latent • Relying in legacy and pride factor

• Very old-fashioned

Pure Ghee House to Traditional Snack House

Reinforcing Purity

Larger than Life

Consumer Buying Perception • Quality, Price, design are key factors considered

at the time of purchase. • Deck up for special occasions to look good so that

people look up to you. • Owning a product from us should be a status

symbol.

Highlights /Que from the SWOT analysis• Rebranding @ user friendly ( experience ,feel etc)• Targeting Young People• Need to focus on IT & ITES group• Tech presence

Communication challenge • Establish: Sweet as a need across all the age

groups • Create demand and generate image to the stores • People must identify with the Store as their ideal

destination. • To establish the factor of reliability & bonding with

the brand • To project as trustworthy brand and create

Goodwill.

Marketing Calendar

The way forward

For Image & Emotional Connect-

OOH & Radio

To Build Salience –Improve Shop VisibilitySelective OOH media

For Fueling Growth –Print & Web

Local Promotions – Cinema Screens

High dose of on-ground engagement with tying up with Radio for activations

New Concept Promotions

Blind Test (For internal Employees)

Aggregate Survey Result

• Association of Pulla Reddy sweets with Park-Hyatt and Radison-Blu

• Internal Branding of Koneru Lakshmaiya University

• Involved in G.Pulla Reddy TVC Ideation

Thank You

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