CANDYLAND

REPORT
DISTRIBUTION AND
CHANNEL MANAGEMENT
Faculty: Sir Tabish

SUBMITTED BY:
KEHKASHAN KHAN 20699
TOOBA KHALID 20161-21172
TAHA AHMED SIDDIQUI 20161-21127
(GROUP LEAD)
NOMAN BURKHANI 20171-22200
SHAHZAIB 20171-21995
Contents
CONFECTIONARY INDUSTRY PAKISTAN..........................................................................................1
Confectionery and Chocolate Industry – An overview:...............................................................................1
Industry Breakdown....................................................................................................................................2
Confectionery and Chocolate Market – An overview..................................................................................5
Understanding The Company......................................................................................................................7
Introduction.............................................................................................................................................7
VISION...................................................................................................................................................8
MISSION................................................................................................................................................8
COPORATE VALUES...........................................................................................................................8
SALES OBJECTIVES............................................................................................................................8
SALES AND MARKETING INTERFACE............................................................................................9
ORGANIZATION’S SALES STRUCTURE ORGANOGRAM.............................................................9
DISTRIBUTORS’ STRUCTURE ORGANOGRAM............................................................................11
Secondary Sales Process............................................................................................................................22
WAREHOUSE AND STOCK MANAGEMENT.....................................................................................23
Primary Sales Ordering.............................................................................................................................26
Secondary Sales Ordering Process............................................................................................................26
Trade and Shopper marketing perspective.................................................................................................26
Occasion...............................................................................................................................................29
Brand....................................................................................................................................................29
Package.................................................................................................................................................29
Price......................................................................................................................................................29
Channel................................................................................................................................................29

CONFECTIONARY INDUSTRY PAKISTAN

Confectionery and Chocolate industry of Pakistan is an analysis of branded (domestically
produced) confectionery and chocolate market of Pakistan. The article reveals close
estimates of sales turnover of major active players in the industry. It also examines
contemporary trends in the local confectionery and chocolate market, with an emphasis
on providing some useful information about the structure, norms, challenges and
competitive landscape of the industry. Before proceeding to our core topic, it would not
be unwise to have a look at the snapshot of country’s socio-economic indicators.     

 Pakistan- Snapshot:

The Islamic Republic of Pakistan is a medium size, densely populated country with over
170 million people living in 796,095 square kilometers. With respect to population and
area, Pakistan stands at no. 7 and no.43 respectively among the nations of the world. It is
located at Southern Asia, bordering the Arabian Sea, between India on the east and Iran
and Afghanistan on the west and China in the north.

Pakistan, an impoverished and underdeveloped country, has suffered from decades of

internal political disputes, low levels of foreign investment, and declining exports of
manufactures. Faced with untenable budgetary deficits, high inflation, and hemorrhaging
foreign exchange reserves.

During 2010-19 GDP growth has been within the range of 6-8%. Inflation remains the
top concern among the public, jumping from 4.08% in 2017 to 5.08% in 2008, primarily
because of rising world fuel and commodity prices. In addition, the Pakistani rupee has
depreciated significantly as a result of political and economic instability.

 Confectionery and Chocolate Industry – An overview:

Despite Pakistan’s confectionery and chocolate industry has enjoyed an emerging and
growing trend in the recent past yet its size and growth pattern has been far
inconsequential compared to other countries of Asia-pacific region. The industry has
grown with an average annual rate of 6.5 to 7.5 % during 2010-2019. Domestic brands
dominate the market accounting for more than 90% of total value sales of the industry.
Industry Breakdown

The industry can be divided between two broader sectors namely organized sector
(branded segment) and un-organized sectors (generic segment). The branded segment is
more of monopolistic in nature where there are nine prominent, active players in the
competitive landscape of this sector. However, 80% of the industry’s share is being
enjoyed by the five companies listed below. A brief overview of major companies
estimated annual sales in PKR is as follows:

Company name Major Product lines Major brands Estimated Chocolate

annual turn- Share %
over PKR

Hilal Candy, Bubble, Ding Dong 10%

Jellies, Chocolates, Bubble, Fresh up 1.541billion
Beans, powder Drinks, bubble, Tulsi,
Supari AamRus, Kopra
candy Limopani 

Ismail Industries Jellies, candies, Chillimili,  Fanty 5.855 38%

Ltd.(Candyland) lollypops, Chocolates, candy, Now, billion
Biscuits, Snacks etc. Bisconi
Chocolito,
Cocomo,  Snack
city, Sonnet

Nestle (an extensive range of Nestlé, Nescafé, 1.541 10%

chocolate products) Nestea, Maggi, billion
Kit Kat, Lion,
Friskies and the
mineral water

B.P sweets Jellies, candies, Spacer, Dolphin 0.3082 2%

lollypops, Chocolates, Jellies, B.P billion
Biscuits, Bread, Lollies, Dream
Snacks etc. Chocolates etc.

Cadbury’s Chocolates(Countlines Dairy Milk 4.9312 32%

and Moulded) Chocolate, Billion
Toffees, Chewable Éclairs, Soft
mint candies mint, Velvet

Mayfair Candies, Toffees, Creamers, 0.1541 1%

Amrood candy, billion
Éclair, Cafe
biscuit

Mitchell’s(only Groceries ( Squashes, Milk Toffee, 0.7705 5%

Confectionery Jams, sauces, Fruit BonBon, billion
& Chocolates) Chocolates- Moulded Butter Scotch,
and Countlines , Jubilee, Golden
Toffees and candies Hearts

Sweet Hills Candies, Toffees Dr. Milk, 0.3082 2%

NutKut, Love
 candy , Cow billion

TOTAL     15.41  
Billion
PKR

Growth Trend Analysis

Volumetric Market Share

 Confectionery and Chocolate Market – An overview

The branded confectionery and chocolate market is highly price elastic and growing with
the bulk of sales concentrated in mid-price range products. Urban markets account for the
major share and for a higher penetration rate. Various retail price points exist within the
mass market segment of chocolates between the range of PKR 3-25. In Sugar
Confectionery major running confectionery items fall into the retail price segment of Rs.
 0.50-1.00. The efforts made for the induction of Rs.2 Confectionery unit by industry
giants have gone into vain so far. However, Rs. 2 and 3 are popular price points for lolly
pops and chocolates range. The industry has faced “coin-barrier” issue in sugar
confectionery products at least three times during last three decades when all key players
unanimously agreed to increase their products’ price due to escalating prices of raw
materials (first from 25 paisa to 50 paisa- in mid 80’s, than 50 paisa to Rs. 1 – in mid 90’s
and lastly from Rs.1 to Rs.2-in late 2008) whereby the active players of the industry were
compelled to raise their prices not less than any thing but 100% because next jump to
coin / price denomination was such that they had no way out. It would be interesting for
the readers to learn that such moves however have always been proved to be a “bitter
pill” for the industry as it brought immense resistance from consumers and trade. In some
of the cases decline in sales as a reaction of price increase was so huge that it forced to
leading brands to take their decision back yet they were not able to retrieve their original
volumes again. Mitchell’s Milk Toffees and Kidco 4ever are classic examples. To avoid
and defer this situation (up to last extend) pro-active companies in Pakistani
confectionery industry adopt three kinds of strategies , without reducing or with slightly
reducing trade margins, namely

 Reduce the no. of units per pack, unit size, and packaging ( in an endeavour to
reduce cost)
 Compromising in product quality by reducing qty and/or quality of expensive raw
material
 By using close substitute that is available relatively at cheaper price as a
replacement of   expensive raw materials

Distribution and Selling strategy: 

About (70-80) % sugar confectionery and chocolate sales generate through wholesale
channel depending upon the nature of product and strategies of manufacturing
companies. Almost all but precisely Hilal and B.P rely much on wholesale channel to
generate bulk chunk of their total sales. To support their sales through this channel they
advertise heavily on electronic media to create brand pull for their brands and
subsequently it force retailers to buy these brands from whole sale. The underlying reason
behind limited coverage in retail sector by these two companies is they do not have
premium priced items that could yield sufficient revenues to make retail distribution
viable for their distribution partners so they do a limited coverage in retail sector. Since
these companies themselves do not emphasize on retail penetration so their distributors
also take an escape route and adopt the way of easy selling through WS. However there
are companies like Cadbury, Candyland, Mitchell’s and Mayfair that are fully aware of
the importance of retail penetration .Hence these companies pay due importance and
attention to retail coverage and subsequently  allocate resources for retail sector. As
stated earlier the emphasis of Hilal and B.P has always been on building consumer pull
through mass media advertising ( mostly through television) and pushing their brands
through wide-spread network of distributors and wholesalers throughout the nation . This
combination of “Push & Pull “ has proved to be a successful tool in their cases because
the nature of their brands also support this strategy as they produce products of mass
market with as low price as Rs.1 , 2 and beyond. Because of this pricing strategy their
products are equally popular in rural and urban towns among middle and lower middle
class. Candyland and Hilal having this advantage enjoy the benefits of a wide-spread
distribution network in  300+ towns and over 350 distributors nation wide (as they have
more than one distributors in some towns). They always try to adopt cost leadership
strategy and generate revenues through high volumes of sales. Frequent launches, re-
launches, re-introduction of old brands with slight modifications, withdrawals, 
adjustments in packaging, product designing and even recipe changes are common
phenomenon in the brands of these two major companies. Contrary to this Cadbury’s and
Mitchell’s believe on establishing brands and brand equity and therefore protection of
quality up to last possible extend remains their top priority.  

Understanding The Company

Introduction

Candyland is recognized as a leader in the confectionery market of Pakistan, offering a

large selection of products in more than 30 countries around the world. During 30 years
of Candyland’s existence, it has become known as one of the most innovative and
creative companies. Candyland is the pioneer in jellies and has launched brands in
technically challenging categories such as pure chocolates, lollipops and marshmallows.
The foundations were laid down in 1988 and since then, the company has constantly
expanded into different product categories and set up state-of- the-art facilities that has
enabled it to become one of the most technologically advanced and superior companies
within the industry.
Candyland has achieved this position by launching and nurturing some iconic
confectionery brands that include Chili Mili and ABC Jelly, Funny Bunny Lollipops,
Puffs Marshmallows, Fanty candy. Our range of Chocolates boast established brands
such as Novella, Now, Paradise and Sonnet. Our commitment to quality is endorsed by
ISO 22000 Certifications. All our brands proudly carry Halal Certifications from
SANHA.
Today, the company has a highly qualified and experienced technical and business team,
along with one of the largest sales force in the category. The goal is to ensure the best
customer value proposition is delivered in every corner of the country.
VISION
To ensure that each of our brands remain the overwhelming first choice for our
customers.
MISSION
Our mission is to lead the confectionery market in terms of consumer preference, product
range, innovation and quality. Our aim is to keep delighting our customers in a profitable
yet sustainable manner.
COPORATE VALUES
 Teamwork: Nobody can get there unless everybody gets there. We focus on
leveraging collective efforts and nurture a culture of appreciating every job, big or
small.
 Fairness: Fairness is a professional skill that must be developed and exercised.
We keep fairness paramount, we do what we say.
 Belief: Achieving something requires belief in oneself, anything is possible for
those who believe. We believe in our products, our processes, our partners and
above all, we believe in each other.
 Leadership: Business performance is driven by effective leaders who can truly
inspire people to unleash their personal and collective potential. We provide
leadership as a company and as individuals with vision, communication and
passion
 Excellence: Excellence is not an exception, it is a prevailing attitude. We view
excellence as a continuous process of raising the bar in everything we do.
SALES OBJECTIVES
Sales objectives of the company are as follows:
1. Sales Target: to meet the sales targets of every month and hence achieving annual
goals
2. To motivate employees: Rewarding employees with incentives and awards in
order to keep them motivated
3. Satisfy customers: to provide customer satisfaction with quality products that are
available at the place of their convenience
4. Growth in Sales: grow monthly sales either by percentage growth upon previous
months, that is, 5-7%. (Momentum based). Or by Year-To-Date method, in which
growth is measured upon the same month of the previous years. GTs follow both
the methods whereas MTs follow YTD method
5. Maximize shelf share: maximizing the availability of the product to outgrow the
competitor.
SALES AND MARKETING INTERFACE

Managerial Level: Decision Support System (DSS)

DSS is an ERP system made by SADAT HAIDER for the company. It provides
following functions:
• Analysis with a click view
• Dashboard: It provides zonal overviews by brand and sales, TSR performances
by brand and category in comparison to targets set.
• Overall daily targets achieved and remaining to meet the targeted growth
both monthly and annually.
Distribution Level: Ismail Industries Limited Shipment (ILLS)
ILLS is a mobile app that is used to record all the daily movement from the warehouses
to distribution centers and then to the shops. It is on-the-go system that is being updated
constantly and at the end of each day the data is compiled and updated to the main
systems.

ORGANIZATION’S SALES STRUCTURE ORGANOGRAM

 GM Sales

RSM (4)

ZSM (Total 6: 1-2

under each RSM)

ASM (Total 14: 4

per ZSM)

TSM (Total 32: 2-3

under each ASM)

OB (Multiple)

Merchandiser
(Multiple)
DISTRIBUTORS’ STRUCTURE ORGANOGRAM

14 distribution centers
Providing the product available for delivery to shops from the warehouse
Dist. Exclusive distributors of the company

116 Distributor Sales representatives

Act as merchandisers for the company
DSR

119 order bookers.

Taking new orders and the ones listed by the company based on past orders.
OB

3 UNDERSTANDING CHANNEL MANAGEMENT & MARKET DYNAMICS

3.1 Classification of Channel Architecture

Candyland classifies its channel in to three basic head of accounts which encompasses
General trade, Modern trade and International modern trade. Unlike its competitors,
Candyland has made its own way of incorporating local modern traded; which follows
the model of international modern trade, under the head account of international modern
trade which omits specific local modern trades from distribution channel system and
provides them privileges of international modern trades. Hence why Imtiaz and Sparr
enjoys the trade discounts as of IMTs. Currently Candyland caters four IMTs namely:
Imtiaz, Metro, Carrefour and Spar.
Wholesalers, General trade and Local modern trades are being catered by distributors
assigned throughout the country. Candyland lays great importance on Large groceries and
Key accounts in order to stimulate impulse buying due to which are have been successful
in making them channels provide the 10% of the total business. Similarly DSRs are paid
100% by Candyland due to which their KPIs are maintained successfully retail as well
which pays 90% of the universe.

3.2 Channel wise business contribution

Since Candyland considers IMTs as a separate head of account therefore they breakdown
the contribution percentage of retail and whole sale. They have only two head of accounts
namely: Retail and Whole sale. It incorporates kiryana shops, cold shops, institutional
sales, LMTs, general stores etc all in retail channel which together contributes 45% to the
total business of Karachi. On the other hand we have whole sale channel which includes
numerous wholesalers spread round the city such as liqatabad, Joria bazar etc, this
channel contributes to 55% to the Candyland’s Karachi’s business. The reason behind
incorporating LMTs in retail channels is because mostly end consumers buy from LMTs
and it is very unlikely that a shop keeper who has small Kiryana store, makes purchase
from local modern trade and secondly in Candyland’s PJP, the frequency of visit on
schedule POPs is 2 which they strictly follows. It covers even the smallest towns and
cities across the country to ensure that their products are readily available to all their
consumers.

3.3 Channel wise universe contribution

Within Karachi company considers its universe in terms of point of purchases. Where
90% of retails point of purchases are contributing 45% of sales to the company and on the
other hand, 10% of whole sale point of purchases are contributing 55% of the sale to
company’s business in Karachi region. With in the PJP there are 3 sections which covers
51 outlets each. Channels are required to maintain their proportion with respect to the
growth of each category share. There are different categories assign in each sections
based on the demand and location for eg; Range 1 possess : bubble chew, candy ,
chocolate, coated chew, jelly , marshmellow, lollipop and pure chocolate. Each section
maintains the category share weekly on the basis of numbers of cartons assigned on each
range. Moreover Distribution channel system is also required to maintain the proportion
with the international modern trade with respect to the growth.
Company primarily divides its sales in to two heads; IMT and all other channels which
are being catered by distributors which they call distribution channel system. Sales team
of the company has been assigned two different types of dashboards on their decision
supports system of Candyland, one for IMTs. Which indicates that they both are being
catered in individual capacities and have their own KPIs to maintain. IMTs in
confectionary contributes 10%, whereas Distribution contributes 90% to the sales in
Karachi’s region.

3.4 Sales Target Setting and Monitoring Process

Target Vs
MOMENTUM
Achievement
Targets are planned on the basis of momentum by examining the progress of target vs
achievement, by DSR, by product, weather conditions etc.
-Two factors are crucial for indication of upcoming month’s target setting:
1) Sales of current month.
2) Sales of the same month in recent year.
Each TSM assigns target to every six section in PJS on the basis of their last month sales
and considering weather conditions. Each section has specific route, there are 5 different
ranges and each ranges possess different categories. DSRs are given targets with respect
to their assigned ranges. Range A possess Jellies and Range B possess Chocolates.
Considering example of Territory: Fb Area, Range A is serve on Monday and its
execution is on Tuesday. Similarly range B is serve on Thursday and its execution is on
Friday.
There are two categories some Territories have one DSR for these two categories and
some have one DSR who caters both categories:

5 Ranges
Category Bubble, candies, chews,chocolates, coated
chews jelly, lollypop,marshmellow, toffee,

A pure chocolate

5 Ranges
Category jelly, lollypop,marshmellow, toffee, pure
chocolate

Targets are assigned to DSRs in terms of cartons on monthly basis and his visited
schedule pops and productive calls are maintained on daily basis.
 MONITORING OF ACHIEVEMENTS

Two types of online dashboard tool are being used for achievements’ monitoring given
below, where manager can monitor sales with respect to brand, category share, ranges,
territories and by time :

DISTRIBUTION
DSS
CLICK
VIEW

ANALYSIS REPORTS
-By brand
-By day
- By same day of periods
-By category
-By DSR performance
-By Range
3.5 Number of distributors in Pakistan with their business contribution

Candyland has a vast distribution network which has been set up through extensive
planning and strategic efforts over many years. It has more than 415 cities and towns are
covered through direct and indirect distribution via their extensive distribution network.
The company has 5 satellite warehouses, in addition to factory warehouses, which are
located at Hyderabad, Multan, Lahore, Faisalabad and Rawalpindi. These satellite
warehouses provide Ismail Industries Limited significant flexibility to adjust to short-
term fluctuations in demand due to seasonality, holidays, weather conditions. It possess
more than 1200 distributors amongst which 12 belongs to Karachi. During the course of
interview RSM excused us in providing the insights about the distributor’s contribution
margin and their ROI.

3.6 Distributor Management Process

Candyland covers even the smallest towns and cities across the country to ensure that
their products are readily available to all their consumers. They have a complete
secondary sales tracking software which enables them to measure following KPIs on real
time basis:

Schedule POPs Productive POPS

Net Sale Carton Net Sale Value
SKU Per Bill Drop Size Carton, Value
Sales Trend Productivity Trend
Brands Contribution SKU Contribution
Channel Contribution POP Type Contribution
Territory Contribution Sales Hierarchy Contribution

The above enunciated point of purchase relating KPIs which is directly dependent on
distributor’s performance, help managing the distributors to maintain the KPIs of the
company and their progress can be evaluated on basis of each KPI which helps sales team
to fill the gap where the observe any shortcoming or loop holes by providing the
appropriate incentives to the DSR considering the changing situations. This DSS system
also help looking at zonal view and evaluate the performance of the complete zone with
the help of click view. The performance of zone can be evaluated on the basis of brand
performance or distributor performance on basis of 5key performance indicators shown
below:

ZONE OVERVIEW

ZONE
 Brand Distributor
Performance Performance
-Volume -Volume
-Callmade -Callmade
-Drop Size -Drop Size
-SKU per bill -SKU per bill
-Productivity -Productivity
3.7 Distributors ROI calculation
During the course of interview RSM refused to provide any insight regarding any of the
distributor’s ROI.

3.8 Rural & peripheral marketing and strategy & process

Candyland has its rural development program in which:
• Small towns are explored and opportunities are identified.
• Tailored/customized solutions are provided such as smaller packets with less
grams lower price points, small trade tool (baskets)
• No master distributors employed. Sub distributors are hired by the distributions
themselves.
 • Sub distributors pick up the stock from the nearest distribution and sell it out in
their respective areas. No transshipment allowed in this case too. The
transshipment is controlled by checking the bills.

3.9 Selection criteria of distributor

• STRONG PORTFOLIO OF CLIENTS: Distributers’ past history is checked along

with their market standing and experience in working with other companies
• FINANCIAL MUSCLE: Bank statements and account details are checked to
confirm that the financial standing of distributer to make timely payments or
primary sales
• ATTITUDE TOWARDS MARKET: Distributer’s approach in terms of channels
operated by the company
• PROFESSIONALISM TOWARDS BUSINESS: Keeping PepsiCo’s values and
objectives aligned with that of distributer’s and assuring the sustenance and
growth of brand equity

Modes of transportation:
The Modes of transportation used by the company and the distributor are Suzuki van,
Mini van, Rikshaw and Trailer
It help to commute within the city and to other city as well. They Cater all General and
Modern trade.
National footprint:
Candlyland operate all over Pakistan. It operate using following resources
 1400+ Vans
 1200+ Distributor
 135,000 Outlet
 10 Production facility
 3000+ Sales force
 It cover 400+ Towns
 5 Regional sales office
 400,000 weekly sales call

Route to market:
Order booker visit to the market and follows the following steps:
 OrderBooker goes on his assigned PJP route after morning meeting, keeping his
monthly targets aligned with his daily sales
 Greets customers Identifies the available stock in the godown of each shop
 Proposes the customers to order the unavailable SKUs and new flavors, if any

 Completes his shops as per the PJP and  with the DMS(Distribution Management
System), ERP system
 Shop wise bills are printed

A PJP plan for a order booker:

PJP formation takes place in a the following way first Calculate the number of outlets
then Categorize the outlets into classes
A class: Bubble, Candies, Chews, Coated chew Toffee
B class: Jellies, Lollipop, Marshmallow, Chocolate, Pure Chocolate.Ensuring that routes
are completed within 7 days that makes once in a week frequency. It is subject to the
business need i.e. in low sales route, it can be once a week frequency then Within 3-6
months an ideal PJP formation with trial and error. Follow-ups are required

Distributor Trade Allowances are given in following order:

 3-4% of each distribution’ monthly sales is given in terms of trade
offers/discounts
 The allowances vary in general trade and wholesale shops
 Trade offer: Rs. 10 SKU free over a carton of Rs. 10 carton(YUMS)

Secondary Sales Process

1. OB goes on his assigned PJP route after morning meeting, keeping his
monthly targets
 2. Visit and greet customers
3. Propose orders to customers by identifying back stock & considering sales
target
4. Syncs mobile with ERP system & generates customer wise bills.
5. order in mobile through application

WAREHOUSE AND STOCK MANAGEMENT

The first thing that is done in a warehouse is stock is off loaded from vans in order to get
them sorted according to category ,stamping is done accordingly so that it is easily
sorted.by category .Having an extensive line of products that’s 86 in total with numerous
SKUs it has been doing exceptionally well. A company that not only operates in the food
division but also started its packaging segment which has been doing exceptionally well
in the market.
As by category sorting is done then each order quantity for each area is dispatched with
thir given requirements and this is predicted a month earlier by the sales tteam whether
what would be the sales that candyland would have in accordance with the forecast
prepared.Shop requirements are fulfilled and sorted according to the mode of transport
and booking wise fulfilment occurs and divisional requirements are fulfilled the order
bookers update their accounts on their hand held devices
Market Return and Replacement Policy:

The process of market return is conducted when a company takes responsibility for the
fault in its products upon claiming. The market return is further classified into:

1. Actual Market Return

2. Fixed Market Return

Fault in products can be Melting due to excessive heat, Damage while distribution or
Minor production faults. In such cases, the Actual market return doesn’t take place
because AMR is not functional and doesn’t happen in most cases. The process of AMR
mostly takes place in Pharmaceutical companies and 99% of these companies provide an
actual market return. If there is a loss or fault in your product, you can return it upon
claiming to the company and through a systematic process the company caters to your
needs. Candyland is a confectionery industry and no such processes of Actual Market
Return take place here. But for trusted distributors who have been with the company for a
long time, to honor the relationship, the company sometimes pays from their own pocket.
They ask the distributor to discard the loss and charge them from the company’s pocket.
But if there isn’t a relationship between the two, you are charged as usual.
Mouse cut: A concept that is mostly applicable in confectionery industries. Mouse cut
happens when food items are attacked by mice, insects and they tend to destroy food
items. Candyland doesn’t take responsibility if such a case of mouse cut occurs. They
urge their customers to take preventive measures and ask them to discard the products.

The process of FMR (Fixed Market Return) is practiced in confectionery industries.

Similarly, Candyland follows the process of FMR.FMR is usually between 0.5-1% and is
possible if only the goods are brought directly from the distributor. If wholesale is
involved or goods are purchased from wholesale and they endure a fault then no process
of return applies. Candyland provides a distributor with a certain percentage of in-voice
upon claiming which again depends upon the type of relationship they have with them.
Companies are not built on FMR. If there is a batch fault in a certain product, Candyland
provides rewards to maintain credibility. In case of batch faults with distributors that are
not so valuable to the company, they charge from their own pocket to rebate their claim
to maintain good-will as per company policy.

Recently Candyland introduced a product in their marshmallow category by the name of

‘Puffs’. Puffs couldn’t do well in the market because of its lack of production capacity in
the plant. Since the whole batch was at fault, strict measures were taken. They discarded
the whole batch. Announced for a full return to trade and adjusted the distributor’s goods
according to FMR. Furthermore, they proceeded to renew and make changes to the plant,
Got the batch verified from QEC and final goods were then dispatched.

Therefore Market return is dependant upon the type of relationship the distributor has
with the company. The percentage of return is high when you’re a loyal customer and
have been with the company for a long time. The company values its relationships and
provides incentives and partial refunds to its esteemed clients.

Types of Claims:

Claims are the rights provided by the company to the distributor. They fall under the
category of market return, the distributor is given a right to ask for a partial refund called
a Rebate or a certain percentage of a quota of the occurred damage. Following are the
types of claims that the distributor can ask for:

1. Trade offer on invoice

2. Damages on invoice
3. Scheme on invoice
4. Rental Trade
5. Profit and Loss
Trade offer on in-voice: Providing distributors a certain percentage of trade discount that
involves a reduction from the catalog or list price.

Damages on in-voice: If there are any damages that occur in the product, it is settled on
the invoice.

Special schemes on wholesale: We give free boxes upon purchasing a carton on

wholesale.

Add-on scheme: Loyalty programs, Dosti programs to increase our engagement.

Rental Trade: We negotiate trade and offer trade prices. Depending strictly upon the
headcount.

Profit and loss: Candyland does not follow the profit and loss claim.

Add-on scheme: C Loyalty programs, Dosti programs to increase our engagement.

Settlement Process:

After distributor files for a claim for market return. These claims are submitted in
Candyland’s head office. A team of experts deals with catering to all claims and deciding
what to offer in return respectively. The settlement process happens all year long.
Candyland typically follows the ‘n-1’ strategy. Where they focus on last month’s claims.
For example, if a distributor claimed in April, he will get a response in May. A proper
checklist is maintained and recorded so no claims get unnoticed. Furthermore, to keep a
progress check, tracker reports are present. These reports track and provide the needed
information to the company. These settlement processes depend upon the type of claims
and the kind of relationship the distributor has with the company.
Credit Management:

Credit is defined as the return on investment that you receive when you invest your
money in trade. Every end of the month, the company calculates the percentage of credit
from the total infrastructure. Candyland usually has a credit of 20-30%. The wholesale
industry is credit dominated and providing credit they are able to generate sales and
products are sold in the market. Credit management in the confectionery industry is the
lowest because of the majority in sales of ‘kachay items’. These items are low in quality
and are available at local shops at a throw-away price. These items prevent sales and put
Candyland at risk in terms of sales. Kachay items may include replicas or Fanty and
Chilli Milli priced at rupees 1 and 2. The only issue that comes at hand is the difference
in quality. Therefore, Candyland is an ISO certified company and if they provide
products of better quality and own up to their severe batch-faults to offer a premium
service to their customers.

Primary Sales Ordering

Primary sales happen when the Manufacturer sells goods to distributors. This is the first
and primary movement of goods. Here the goods move from the manufacturer’s
warehouse to the distributor’s warehouse. The billing happens to the distributor who is
the primary sale point. Primary sales contribute to the revenue and the profits of the
company. Primary sales are the main focus of the company.

How the process starts is when the distributor has placed in an order now that order
fulfillment process starts when the purchase order is generated by the company and then
then distributor has to fulfill the payment requirements for the order and then thus order
dispatch date and the amount of the required SKUs is generated .After that it is the job of
the order booker what is his order requirements accordingly and updates it on his
handheld devices.

Secondary Sales Ordering Process

Trade and Shopper marketing perspective 

Today, almost all leading manufacturers have a trade marketing function in their
business. But this fact alone does not mean that all businesses have a common
understanding of trade marketing. Indeed, one of my colleagues urged me to check-out
the definition of trade marketing on Wikipedia; the long, rambling and incoherent
‘definition’ is accompanied by a request for help in improving it!

There’s no doubt that in most companies the support of trade marketers is valued by their
colleagues in sales and marketing. But different companies seem to have different
requirements of their trade marketers. For some it’s a strategic stand-alone function, for
others it’s an administrative support function. Indeed, there appear to be four common
forms of trade marketing in operation globally, all with quite different roles and
responsibilities. As a result, for many companies trade marketing is the sum of its
activities.

No surprise then that with the advent of the term ‘Shopper Marketing’ over the last
decade we have seen many managers rebranding trade marketing as shopper marketing.

Shopper marketing with respect to Candyland is more about vibrant colors and attracting
the younger generation sold to purchase their products that is why they certainly have an
edge over creative marketing with their tactics to ace the best results in terms of brand
marketing.

They have always stood out in terms of their SKUs from their food segments. The most
revenue generated is from must have Skoshes must have skus are different for each
segment even in each segment there is a variety of must have SKUS.

Merchandiser Daily Plan

1. Arrival at the Distribution

2. Morning Meeting
3. PJP Discussion & POSM Collection
4. Arrival at the Outlet
5. Planogramming
6. Data Recording in Handheld
7. Complete PJP
8. Report to Supervisor
9. End of the Day

SHOPPER MARKETING TOOLS

The visibility of the product on racks ,basically eye level is where their premium brand
that is novella is placed, Then as we look at lower levels of the racks we crown and
paradise. They are different packing wise as well they are small chocolates.

MERCHANDISING TEAM

Head Of Modern

Key account
MERCHANDISING TOOLS

SHELF GONDOLAS
TALKERS POSTERS GONDOLAS

The confectionary market is not restricted to racks but also hot selling areas like podiums
placed in the middle new product choc-oh. Then as we look at lower levels of the racks
we crown and paradise,they are SKU wise as well they are bite size chocolates skus per
brand differs,sku differs as placement is different
Each store has a different planogram for eg has by category usually IMTs are category
based , It also depends on each company and what it ahs paid for ,if candly land pays
heavily to a store it might get the entire shelve legally By company as well,like
candyland is given entire shelf depends on contract as well that what is based in the
contract
OBPPC
Our OBPPC (Occasion, Brand, Package, Price and Channel) strategy offers people the
right product, in the right pack, at the right price to suit the occasion.
We’ve established clear category and brand priorities, offering consumers the right
product, in the right pack, at the right price to suit the occasion: we call this our OBPPC
(Occasion, Brand, Package, Price and Channel) strategy. 

Well-executed OBPPC strategies mean that we have an offering to suit every shopper’s
need. This, in turn, helps us to capture people’s disposable income faster than our
competitors. Being innovative around the occasions when people enjoy our brands allows
us to tap into less price-oriented shopping trips, so growing our revenue ahead of volume.

Occasion
Candyland provides a variety of products to match shopper needs in every channel and
for every occasion. We make sure that we link our brands and packs to the most relevant
occasions to drive incremental transactions.

Brand
We offer consumers a broad choice of brands in different categories. People can
choose from one bite chocolates to giant bars , such as the legendary Novella and other
popular brands like Now and Fanty.

Package
Our products come in an increasingly diverse range of packaging which is designed to
reflect today’s diverse lifestyles., while family multi-packs help people celebrate special
occasions at home. Premium consumers will enjoy the feel of our brands at imts,lmts and
GT.

Price
Affordability considerations are key in our offer. The ambition is to match our offer to
different consumer needs and opportunities.

Channel
Huge hypermarket, discounter, restaurant or the small convenience store next door - we
have the right product range for every channel. Our rich knowledge of shopping patterns
lets us understand different shoppers’ motivations across different channels. As a result
of this, and our longstanding cooperation with different customers, we’ve designed our
portfolio so that our customers are satisfied by having the right product range people are
looking for in their outlets
RECOMMENDATIONS
● PLACEMENT NEEDS TO IMPROVE
● PRODUCT VISIBILITY
● PRODUCT PROMOTIONS