Kandos chocalate

Group Assignment :- HDBM 15.2

Company profile • Company name Upali group of companies• Founder Mr.Upali wijewardhana • Location Kundasale in Kandy• Year 1962 as a public company • slogan The original chocolate

The company manufactures quality chocolates & confectionary under the brand names of kandos , newgen & delta

Kandos is now the market leader in the domestic market and has embarked on exports

too.

product

Product

Chocolate slab

Made from 100 % coco butter extracted from criolo beans.

Available in 200g

Contains milk in all 5 varieties categories available milk chocolate, cashew nut milk chocolate, almod milk chocolate, hazel nut milk chocolate ,fruit and nut

milk chocolate

Classification of product

1st classification

• Non durable

2nd classification

• tangible

3rd classification

• Consumer product

Selected brand products falls under convenience product

Consumer products

Shopping product

Specialty product

Unsought product

Convenience product

Convenience products are items that consumers are willing to purchase with least amount of effort , these products can further be divided into 3 categories .

21 collection Chocolate is an impulse item where purchasing is influenced by visibility in stores and by package of kandos

Product mix

Product mix is the sum of all products that a company offer,

Length : 44 Breadth : 4 Depth : 11 Consistency : high

Product lines of Kandos

Levels of product

A product can be divided into three levels which are a series of different features and benefits which helps in its segmentation, targeting and positioning.

Core level The main target market of this chocolate are mainly adults and young adults. Adults in the age range of 36 to 55 Young adults in the age range of 18 to 35

The needs address by the core level Chocolate as a snack food The habit of chocolate being given as a gift between loved ones , friends

and relatives. After having lunch or dinner as a sweet. Prefer giving chocolates instead of sweets during festivals , seasonal and

religious events such as Christmas and new year.Product benefit Tasty Satisfactory Healthy ( in some cases)

Actual level The second level a marketer has to design when developing

a product is called the actual level. the main purpose of adding this level is where the product can be sold in the market by addressing the core level

Tangible level consist of 5 components they are: Quality Features Design Branding packaging

QualityTypes of raw materials used –• Chocolates are produced using criolo coco beans.• Use locally available cashew nuts.• Company produces coated peanuts.

Technology implemented – • Recently modernized their chocolate manufacturing process using

new machines.

Skills and experiences – • Well experienced work force available in production units.

• In 2016 January kandos was awarded as The Best Quality Product in Sri Lanka at the world leading conference.

Features

The physical characteristics of the product that contributes to benefit its offer

Design

Chocolate slab the pieces come in square shape it will melt differently in the mouth potentially changing the release of molecules from its ingredients and its flavor .

Branding Brand essence is associated with love ,sharing ,caring and

enhancement of family values. “Kan” – from the word Kandy, since the origin of the company is

Kandy “Do” - from the first name of the managing director –Dodwill “S”- being the first letter of the chairman’s name Sarath Wijesinghe

PackagingThere are usually 2 types of packaging. primary package secondary packaging

Foil wrappers and cardboard box to protect the chocolate from insectsand to maintain the quality of the product.

Product life cycle There are 4 stages under this: Introduction level Growth level Maturity level Decline level

Introduction level

In 2000-kandos launched 21 collections to the market. 21 collection chocolate name was born with the millennium bug

problem. Theme of the range named as pure pleasure with class. Micron level contained in a chocolate in between 20-30 microns. It was launched to suit chocolates available in the international

market. Positioned as high quality, high price range. 90g slab was priced at RS.150 Secondary Package is a normal wrapper with color combination

of brown, purple brown, red and brown.

There were 4 varieties of chocolates available in 21 collection range in the market at that time, namely truly milk, milk rum and raisin, java coffee milk chocolate, cashew connections milk chocolate.

Growth level Corporate TV Advertising campaign hold the lady that dance

in a ballroom. The brand penetrated sales volumes grew by 40% according

to Nielsen research report.

Maturity level Reduced microns capacity to 15 microns. Added flavor N-capsulations for chocolate to give different

taste when consuming. Blending time period extended to 48 hours.

Decline level When imported chocolate brands came in to the market , It showed a gradual decline in the demand for 21 collection

range. Decline sales growth. Customer complaints increased due to the changes of the

taste of the chocolate. The reason that they identified was that is because of the long term high consumption of the blending machine, as a result taste subjected to changes.

Criolo beans which were harvested in Sri Lanka got declined at that time due to climatic changes.

Product life cycle

Re launched level this chocolate range relaunched again in September 2015 now and

it remain in introduction level Secondary package changed to box container. Also the color of box subjected to change according to variety of

chocolates. Reduce micron level to below 15. Extended blending hours to 72 hours. Weight increased to 200g and price became as RS. 500 They did not increase supply of the chocolate they released up to

limited amount with the time they hope to increase supply by examining the feed back of customers and demand in the market for this range.

There are no TV advertising campaigns regarding this chocolate after they relaunched.

Old flavors were replaced at this stage and the new flavors which were introduced were fruit and nut milk chocolate, hazel nut milk chocolate, almond milk chocolate, cashew nut milk chocolate, and milk chocolate.

Introduction level (Relaunch )

Place

Place mix It is the method used to distribute products or services through various

distribution channels to the end user , it is a vitally important activity that focuses on how to reach the target market.

Location of the business Location of the target market Kandos factory - Ceylon chocolates limited , Padiwatte, Kundasale Head office - 223 / blouemendhal road, Colombo 13 Ceylon chocolate company is situated in Kandy because of the

matching climatic conditions to the production of chocolates and easy to extract raw materials .

Channel of distribution

Kandos Shop 38/1,Thurstan road, Consumer Colombo 03

Kandos Manufacture Kandos Agent Consumer

Kandos Manufacture Retailer Consumer • Supermarkets

situated in towns.•Pharmacies•Arpico Super Centre

Level of distribution coverage Marketers must take into consideration many factors when choosing

the right level of distribution coverage, marketers should understand that distribution creates costs to the organization ,there are 3 levels of distribution coverage.

Intensive coverage. Exclusive coverage. Selective coverage.

Kandos 21 collection chocolate coverage strategy is selective coverage due to 4 main reasons they are :

To maintain the quality of the product.

It is important that this product is stored at air condition environment ,when temperature is above the standard level it is subjected to melt quickly. If so the structure of the chocolate might go out of shape and the lay out will changed according to low density to high density.

Available for customers that can afford this price.

This chocolate’s theme is high quality high price because in production it incurs a high cost.

Price

Price

Amount of money charged for a product or a service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.

Pricing objectivesSurvivalMaximum current profitMaximum market shareMaximum market skimming Product quality Leadership

Competitors

Any person or entity which is a rival against another, In business, a company in the same industry or a similar industry which offers a similar product or service.

Promotion

Promotional strategy

The 21 collection range main target market is adults and young adults.

The promotional strategy of kanods is unique.Kandos tends to promote its products among the people than promoting them on TV.

Conducting consumer campaigns have been their main promotional strategy.

Kandos cooperate promotional events

Children day zoo campaigns.The kandos magic wiz kids consumer

campaign.Annual factory visits.

CSR eventsefasConducting seminars for grade five

students annually. Provide scholarships for 1000 destitute

children to their further education.

Weak points Recommendations

72 machine hours incurred in production , it delays other production lines.

Change the chocolate mould.

Secondary package is not up to the standard of its price.

Arrange specialty package for this slab

Quickly subjected to melt. Change the primary package into a plastic container.

Competitors also uses the same recipes. Eg: Revello and Edna.

To make and differentiate changes on the taste of the chocolate and newly introduce white chocolate to this range.

Only available in 200 g. Two new ranges introduced 100g & 400 g.

Customer awareness is less for this product .

organize attractive promotional campaigns in locations where high and middle income families gather.

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