Bringing choices from across the globe for customers
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