Leading domestic candy player Candico India is charting a new plan to leverage its mass appeal after its successful “back-to-basics” strategy. The company is tying up with consumer durable major LG Electronics to drive growth. The company has opted to go for joint promotions with major non-candy players to reach an overall target of 10 to 12 per cent this fiscal.
“The objective truly is to induce retail promotions, initiate consumer trials and introduce the new packages for commercial retail,” said Karan Gupta, Executive Director, Candico India. Gupta said that 1,00,000 exclusive pouches will be distributed at LG’s stalls as part of the “LG MY PC” roadshow, which will cover 500 cities across India.
In fact, as part of the joint promotion, Gupta said, “LG would get more footfalls and we will get more trials. Hence, it is a symbiotic exercise.”
Interestingly, the company has now opened the possibility of such joint promotions with other non-candy players too. “We are open to tying up with other companies too for similar exercises. As of now, we have signed up with LG and Habitat Centre. We are looking at other options as well,” he said. The company has made 3,00,000 pouches in total and 1/3 rd of this has been given to LGEIL. The total investment for the pouches has been Rs 1 crore. Each candy pouch contains Koffi Toffi, Fruits, Lacto Plus and Eclairs.
On the promotional strategy, Gupta said that a three-pronged approach is being looked at. “We have a product-based approach, which would lead to free distribution of Candico’s assorted candy pouches to entice consumer trial. Secondly, we are looking at attractive POP displays that will attract and retain consumers, thereby translating to sales and finally, innovative packaging and trials that would also lead to product trials.”
Earlier this year, the company had initiated the back-to-basics marketing strategy to clinch market share. The company focused on the traditional category like the hard-boiled candies that has been neglected by the organised sector and innovated them. Gupta is happy with the result.
“This strategy has certainly worked in our favour and we will continue in reviving the traditional candies and bring them back to the market with innovations in flavour and a far better look,” he said.
On the price variation in the candy market, he said, “There has been a general increase in price in the overall market leading to a light price variation in the value chain. However, it really wouldn’t have any effect on the consumer.”