Market environment of India's gum industry

Indian market includes hard-boiled candies, toffees, sugar-based candies and gum centered products.

Market Demand

The global market continues to grow, despite of the fact that certain areas of the confectionery industry have reached maturity in many parts of the world. Most of this recent development has result from developing locations and countries by growing bottom of progressively affluent consumers in places such as Russia, China and India. Inside the developed world, much of the market's recent progress can be attributed to industries, such as low-fat, low-sugar and organic and natural products. New product technology remains critical to future success within the industry, with many of the world's leading suppliers trading heavily in this field.

Size of the Gum Market in India

India has one of the fastest growing gum categories worldwide. Regarding to AC Nielsen, how big is India's total gum category is around Rs 1, 000 crore. Nibbling gums and bubble gums take into account roughly 44% and 56% of the category respectively. In India the bubble gum section is bigger than the nicotine gum section, whereas in the rest of the world it is the other way around.

According to the Nielsen survey, in 2008 the gum industry in India was growing at about 20% per annum.

Market Growth

The $122 billion gum market is growing by 3 % a year, a significant rate for food but within that, sales of sugarless gum are growing by 15 per cent per year. The magic ingredient in modern sugarless gums is Xylitol, a sweetener made by a Danish firm from silver-birch pulp. A study in the Journal of Treatments found that Xylitol cuts teeth decay by 70 per cent by inhibiting development of oral bacteria. The sweetener is central to a struggle in Asia to get the next cure-all gum.

The gum category in India keeps growing at a wholesome 20%.

Market segmentation

Chewing gums and mints are a preferred worldwide. Their market has made high revenue from Rs 500 million to Rs 3000 million in only three years and is currently positioned at Rs 3, 500 million.

Market Analysis

If we look at the per-capita use of nicotine gum in India it is merely 8 per season as compared to 2000 per 12 months in U. S. A & 1000 in Russia. Market talk about of gums has increased by 20% in 2008. The existing size of the Indian chewing gum market is projected to be about 1000 Crores (INR) and it offers extensive opportunities to new arising companies. It has risen as the new style-of-living market having great market potential.

According to the review, more emphasis can be given to the western world zone but the areas are also potential market. The mark customers are youngsters and our target market also contains people who belong to middle-middle and upper-middle category people as confectionary items specially gnawing gums are normally luxury items.

Competitive environment

Identifying Competitors

After the marketplace segmentation, our next job is to recognize the competitors of our own company. After examining the market we came to know that Perfetti is our major competitor. Because "Happydent" the merchandise made by Perfetti is providing some similar chemicals as with Chew-den at almost same cost.

Analysis of Perfetti


The Indian confectionery market is divided in three categories: Candies and toffees, gums and mints. Perfetti's edge is that it is the only real company with products for each of the three categories. Perfetti places humour (Mentos and Centre Fresh), sentiment (Alpenliebe), bizarreness (Happydent and Chlor-Mint) and fun in liberal methods in every its commercials. The best way to make a difference in your brain of consumers, Perfetti has understood, is to coin taglines for those its flagship products. Like, there may be Zubaan par rakhe lagaam for Center Fresh, Dobara mat puchna for Chlor-Mint and Dimag ki batti jala de for Mentos. They are all expressions borrowed from everyday utilization of the junior - the bulk of confectionery buyers are between four and 24 years. Perfetti have also done a brilliant thing by giving its products to merchants in plastic material jars. This makes life convenient for the shop and gives the company the opportunity to place its brands prominently at the store.


The Perfetti wants maximizing its earnings, sales growth and market show. Perfetti also intends to improve children, to provide health service and impart vocational training. Their purpose is also to target the children through advertisements which involves a fun and happy-go-lucky frame of mind.


The biggest power of Perfetti is the fact that it has already broadened its market by introducing products in different categories. The other you are that it has more market knowledge and a good position in market. The business already has a established name in market and holds a 40% of market show of confectionary section.


The company is providing all the benefits to the clients but their product is not able to protect the teeth from teeth decay and oral cavity odour.

Competitive strategy

As we are new on the market so we don't have a wide array of market talk about. Thus we are looking to make our market share. That is why we come under the market follower category. Our company come under the category of imitator because we provides our product with some differentiation factor of presentation and advertising. So our most important aim is to produce a value in the market and making the maximum profit by create our product by acquiring client satisfaction.

Competitive forces

Threat of extreme section rivalry: Wrigleys, Perfetti vehicle de melle, Cadbury

Threat of new entrants: both admittance and exit are high

Threat of substitute products: candy like cholormint, Mintofresh

Identifying competition: Wrigleys, Perfetti van de melle, Cadbury and many more

Economic environment

In our business a customer can easily swap the brand because the merchandise price is not high. So our primary motive is to keep healthy relation with customers by giving them best value product and services in this segment.

Customer recognized value

It is the difference between your prospective customer's expectation of all benefits and all the costs associated with an offering and the perceived alternatives.

We will offer price according to the market and add cloves, Xylitol and cardamom as elements which helps in teeth decay and inhale and exhale freshening. We will maintain source chain management to create a value delivery network. We can do survey on monthly basis initially to learn the customer understanding about our product.

Other Macro-environmental Forces

Demographic environment

People from all age group in terms of size, location, age, gender, occupation, ingest NICOTINE GUM.

Social and Ethnical environment

Made up of institutions and other makes that impact a society's basic ideals, perceptions, personal preferences and behaviours.

Technological environment

Allows the existing products to be produced more cheaply and in so doing expanding the market for such products by cutting down down prices.

Allows new and easy ways of distributing goods. It also provides new opportunities to communicate with the targeted customers.

Political environment

Consists of laws and regulations, government firms and other groups that influence or limit various organisational activities.

6) Financial Projections

a. ) Break-even Analysis

Break-even evaluation is a technique, mainly utilized by development management and management accountants. It really is a way of categorising creation costs between your varying costs that change in line with the number of products produced and set cost which is in a roundabout way related to the volume of development.

Here, total varying costs and fixed costs are weighed against total sales revenue in order to determine the level of total sales quantity at which the business enterprise neither makes a earnings nor a damage. It is called break-even point.

4th. JPG

b. ) Sales Forecast

Sales forecasting is the most significant process in business. It really is one of the most difficult areas of marketing management. You can find mainly two types of forecasting that may be referred to as macro and micro. Macro forecasting is more concerned about evaluating the present level of marketing demand for the existing products and forecasting the market demand of the same in future. Micro forecasting can be involved with determining today's number of items produced and forecasting sale of items in future. It is also about deciding product's market share on the market and forecasting the positioning of market talk about in future. Sales forecasting process is mainly used to make the decisions regarding,

Labour drive requirement

Investment necessary for increasing the development capacity

Evaluate the near future demand of the prevailing products

Additional investment necessary to meet the bills of new promotional activities for marketing the products in future.

Determining exactly what will happen to the marketplace share of the merchandise in future.

c. ) Expenditure forecast

Expense forecast is a must for every organisation to evaluate today's investment on creation cost and forecasting the comparative increase in various costs to be able to improve the production volume. Wages, recycleables, business fees, office rent, equipment leases, mobile phone charges, postage and other expenditures are associated with running a business. It mainly includes the forecasting of the following costs

Start up costs such as deposits, business furniture, leasehold advancements, signage, licenses and permits.

Variable costs such as raw materials, supplies, product packaging and transportation. Immediate labor costs, such as sales commissions, also fall under this category.

Fixed costs such as fees, office rent, bills, phone expenses, insurance, legal and professional fees, postage, resources, salaries and marketing and advertising costs.

http://www. work. com/accurate-expense-forecasting-491/

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