Bring­ing choices from across the globe for cus­tomers

Progressive Grocer (India) - - Category Watch -

Brand pro­file: Kravour Foods is based out of Ahmed­abad and the brand caters to the masses among whom the de­mand for for­eign con­fec­tionery is also grow­ing. Kravour Foods im­ports sparkling juices and drinks from Bel­gium, dip sticks from Malaysia and con­fec­tionery from Ger­many. It man­u­fac­tures a range of con­fec­tionery and bis­cuit wafers at its plant in Ahmed­abad.

Mar­ket and con­sumer seg­ments: For its im­ported con­fec­tionery, it counts Mod­ern Trade as its pri­mary sales chan­nel whereas gen­eral trade out­lets are its dis­tri­bu­tion plat­form for bis­cuit wafers. Wafer bis­cuits man­u­fac­tured by the com­pany in In­dia has a big mar­ket in tra­di­tional re­tail stores. The com­pany feels that there is a strong de­mand for good qual­ity prod­ucts and as the in­come level of peo­ple rise, they are more dis­posed to buy­ing for­eign brands with­out wor­ry­ing about its cost. For in­stance, there is now an in­creas­ing de­mand for prod­ucts like Lindt choco­lates from Bel­gium and other such im­ported con­fec­tionery, which peo­ple get a chance to sa­vor dur­ing their for­eign vis­its.

Mar­ket size: The con­fec­tionery and cho­co­late mar­ket is grow­ing at a faster rate than any other seg­ment of the food in­dus­try. The mar­ket is grow­ing at a rate of 12% to 15% per an­num.

Seg­ment growth and cat­e­gory in­no­va­tion: Su­gar Boiled con­fec­tionery is the fastest grow­ing seg­ment in the cho­co­late and con­fec­tionery mar­ket. Bet­ter dis­tri­bu­tion net­work along with mass reach is act­ing as a strong driv­ers of the mar­ket growth. In­no­va­tive prod­ucts and some unique new flavours are also driv­ing sales growth. The com­pany wants to con­tin­u­ously launch newer vari­ants in ev­ery cat­e­gory with the help of OEM part­ners of the brand.

Mar­ket op­por­tu­nity: Grow­ing in­comes, ex­po­sure and travel and the quest for bet­ter qual­ity prod­ucts are some fac­tors that have in­creased the de­mand for for­eign con­fec­tionery brands in the In­dian mar­ket. Sev­eral brands like Fer­rero, Mon­delez, Meiji and Mars have come and con­quered the In­dian con­fec­tionery and cho­co­late mar­ket. These ex­am­ples are an in­spi­ra­tion for other brands who con­sider In­dia as a po­ten­tial mar­ket for their brands. The de­mands are con­stantly ris­ing and thus cre­at­ing more de­mand for newer va­ri­eties like gluten-free, or­ganic, ve­gan, etc. Hence, the op­por­tu­nity for for­eign brands to en­ter the In­dian mar­ket is grow­ing rapidly. Mar­ket­ing strat­egy: The com­pany be­lieves that a unique and in­no­va­tive ap­proach for pack­ag­ing con­fec­tionery and choco­lates will help re­tail­ers in meet­ing the de­mands of their cus­tomers. De­vel­op­ing and putting in place an in-depth dis­tri­bu­tion chan­nel to achieve di­rect in­ter­ac­tion with re­tail­ers and cus­tomers is the key mar­ket­ing strat­egy for the brand. It feels that there is a need for stronger laws to keep a check on du­pli­ca­tion and sub­stan­dard prod­ucts. It be­lieves that stronger reg­u­la­tory checks should be put in place to check against fake and sub­stan­dard brands that pose a health haz­ard for con­sumers be­sides putting com­pa­nies with gen­uine prod­ucts at dis­ad­van­tage. Chal­lenges and out­look: There is a gap in the mar­ket when it comes to the reach of con­fec­tionery prod­ucts. Kravour Foods is try­ing to tap those gaps by con­tin­u­ously launch­ing newer vari­ants and prod­ucts. It has a va­ri­ety of prod­uct range to of­fer to its chan­nel part­ners and re­tail­ers. Big in­ter­na­tional brands dom­i­nate the con­fec­tionery and cho­co­late mar­ket in the Mod­ern Trade chan­nel. Com­pet­ing with these pop­u­lar brands, cre­at­ing a vi­able po­si­tion­ing for its prod­ucts and mak­ing a mark with the cus­tomers is not an easy task for a young brand like Kravour Foods. It is hard to get ac­knowl­edged among the larger and more pop­u­lar brands and to com­pete with them. And yet, the com­pany is de­ter­mined to make it big and cre­ate a strong mar­ket for its prod­ucts.

There is a gap in the mar­ket when it comes to the reach of con­fec­tionery prod­ucts. Reach­ing prospec­tive cus­tomers is a hur­dle for new age brands as the mar­ket is al­ready dom­i­nated by some big in­ter­na­tional play­ers. It is hard to get ac­knowl­edged among such brands and to com­pete with them. – Prasan Su­rana Di­rec­tor, Kravour Foods

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