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Group5 Assignment3 Confectionery

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Introduction

In his interview, Afnan Ahsan shares his insights on the consumer habits and developmental

process of confectionary goods. Afnan Ahsan is a decorated corporate employee who has

worked for world renowned multinational corporations such as Coca Cola, PepsiCo, and Nestle

as well as large scale local production companies such as Engro foods. After having worked in

the corporate sector for the majority of a very successful career, Ahsan decided to take on the

role of managing director at Perfetti Van Melle. Perfetti is an organization that is responsible

for the production of some of the most popular confectioneries worldwide: Mentos, Chupa

Chups, and Fruitella are just a few examples of the confectioneries produced. Though this may

seem like a path right back into the corporate sector, “Perfetti is big enough that I can apply my

learnings but small enough that it’ll matter,” Ahsan explained. The following text entails the

discussion’s highlights: consumer behavior and trends of the confectionery market.

Indulgent Product
Confectionary products such as lollipops and gummy candies can provide a consumer with

temporary pleasure, a sense of nostalgia, or even addition joy at celebrations and memorable

events. Almost all age groups including older adolescents indulge in consuming sweet items

such as chocolates after a meal. Confectionary consumption amongst the elderly is higher in

households with children. These households have greater consumption rates as adults tend to

buy confectionary products for their children when grocery shopping, in order to motivate,

reward, distract, or even discipline their children. One of our group members, Mahnoor, shared

how her grandfather used to walk around with pockets full of sweets and chocolates for all his

grandchildren, regardless of their age. In moments like these one often indulges in a

confectionary good in the spirit of the moment rather than make a rational health-centric

decision. Another common example of such indulge is very vibrant in the LUMS community.
Regardless of where one chooses to eat from, a majority of the community is seen indulging in

some sort of post-meal dessert. Given the financial constraints of students, these desserts often

end up being confectionery goods such as Cocomo. Hostilities in LUMS are often seen

carrying bags containing confectionary goods given the wide range of products displayed in

the khokha and superstore to potentially boost energy levels resulting in longer studying times.

A similar pattern can be observed in quick-service restaurants such as Subway. The check-out

counter displays freshly baked cookies to provoke the impulsive indulgent buyer.

Moreover, consumer behavior theory indicates that these indulgent products are commonly

used to relieve stress. Many individuals use chewing gum as a method of decreasing stress

levels. Emotional indulgers may also engage in these impulsive buys given their search for a

sugar rush or comfort food to lift their spirits. One of the group members, Aiyla, shared that

her parents used to give her juice and chocolate to take with her during an exam to refuel her

in case she felt low on energy.

Impulse Buying Behavior


Confectionaries are mostly seen lined up in aisles near the cash counter because they are an

impulse buy. These are called impulse buys as consumers almost never add these items to

their grocery lists or visit a store solely to purchase the item, but rather, they are bought while

shopping for other items. In our group discussions, Mahnoor talked about how items such as

lollipops, candies, and chewing gums are never part of their household’s grocery shopping list.

However, at the cash counter, her family always purchases confectionary goods when her

younger siblings are present. Another reason why these items are placed near the cash

counter is that retail outlets like Alfatah often have long queues and checkout can become

time-consuming, allowing confectionary products to pose as the perfect distraction. These

distractions can very easily become impulse purchases. This uncovers the importance of shelf
arrangement, which in the case of confectionery items, provides ease of adding an item to

the cart, encouraging impulsive behavior.

“Eye level is buy level.” Not only are confectionary products strategically placed at checkout

counters, however, they are often also placed on the lower shelves to grasp the attention of

children. Our group discussed a popular example of this: the Kinder Joy display next to shorter

stands at checkout counters. Vibrant colors, iconic images, and a wide variety of attractive

packaging grab almost every individual's attention when at the counter. The colorful Haribo

jelly display is also seen close to the cash counter because such items make people happy

and this enjoyment drives them to buy the product. Most impulse buys are chocolates and

candies as people treat themselves with such items believing that they will help reduce stress.

The decision to buy is easier for the purchaser when single items are placed like kinder joy,

jellies, lollipops, etc. instead of family/sharing packs as they will be expensive and reduce the

chance of a sale.

Distraction also results in impulse buying because our mental capabilities are limited and one

can buy an appealing product just because they were mentally not present. This happens with

parents when at the cash counter they are busy calculating and checking the bill on the screen

and children add their chosen items to the basket. Parents have hardly any mental resources

left after the grocery shopping to make another purchase decision and therefore, buy the

unplanned item as well.

At smaller retail outlets the cashier sometimes tends to handover candies instead of a cash

return when return is a small amount (Rs.5-10). Such practices are very common in our culture

and retailers use these strategies to introduce new candy brands and flavors to customers that

they would not otherwise buy increasing sales of candies.

Packaging
As repeatedly mentioned by Mr. Afnan, it all starts and ends with consumers. Packaging is the

first point of contact with customers and the most sustainable medium of communication for

brands. Further, it communicates the product ingredients, portion size, expiry, manufacturing
etc. There has been an increasing trend towards sustainable packaging and consumers are

becoming more and more socially responsible wanting to protect the environment and

therefore, brands are moving towards using decomposable and recyclable material to respond

to consumer preference. Such shifts to adapt to current consumer behavior of responsible

consumption increase customer loyalty towards the brand. One of the psychological factors

that impact consumer behavior is perception of consumers. Perception is greatly influenced

by the brand’s marketing and even packaging. The use of recyclable products creates a

perception in the consumers’ minds of the brand being a sustainable business.

Packaging is an external stimulus that impacts consumer behavior encouraging them to pick

up the product from the shelf. Confectionaries such as Fruitella and trident come with

indistinguishable colors each flavor that instantly appeals to the customer eye and they tend

to associate the color with flavor the tropical flavor of trident comes in orange.

Packaging not only allows the seller to sell the product in multiple channels but it also

determines the shelf life and transportability of the product. Product shape, color, size and

overall design are the “smashables” that a brand has which makes it easy to distinguish the

product from others on the shelf. Since consumers have selective attention hence creating a

smashable allows brands to be retained by the consumers.

Shape is part of the brand Intrinsic as it is a measurable physical component of the product

like the shape of Cocomo with iconic images which impacts the size, packaging, and

presentation of the product. Packaging of confectionery products also needs to be convenient

as they are mostly consumed on the go and the entire product is not consumed at once so

they should be easy to carry. Stick packaging meets this goal as it holds the product in shape

and can be consumed one by one, also the packaging of trident will be a good example as it

is slim and easy to store.

Price sensitivity is a major consideration when it comes to packaging. Confectionaries are low

ticket items and brands have to be careful not to make packaging too expensive and reduce

their profit margins or end up cutting down the quality or quantity of the product to maintain

costs.
Culture and Social Factors
The buying behavior of consumers in confectionary markets is also shaped by the cultural and

social values. While candies, gums, etc., of Perfetti, according to Mr.Afnan, are sold in

bundles in the West, they are sold as single items in Asian countries like Pakistan and India.

The people of these countries see confectionary items as products for instant gratification

and are seldom purchased with the intention of using them as gifts. Instead, traditional

sweets (mithai) are preferred as gifts in these Asian countries. In the West, however,

confectionary items are mostly purchased to share and give as gifts. An example of this

behavior was seen when one of our group members, Muneeb Munir, displayed his uncle’s

sweet collection that he brought from Australia to Pakistan as a gift for his family. These sweets

included items for every age group. For Kids, there were M&Ms and Sour Patch Kids. For

adults, there were roasted almond and dark chocolates. This is a typical example that

showcases the difference in buying and consumption patterns due to varying cultural and

social values which shape the taste of the customers.

Moreover, the culture also impacts consumer wants as mentioned by Mr. Afnan, mango

flavored confectionery items are common in the subcontinent. Other similar examples can also

be observed such as Nestle launched Polo “Paan” flavor for the subcontinent to localize its

existing products without losing its brand essence.

Another consumer behavior that is heavily influenced by culture is the concept of consuming

soda drinks such as Coke with almost every meal. In Pakistan, any family gathering is

incomplete without such soda drinks, even if you visit someone’s home, the welcome drinks

that the majority of people serve are sodas. This is one of the many examples of how culture

hugely impacts our preferences and choices. Moreover, this also indicates that the

confectionery industry is highly customer driven. We would like to quote an interesting line from

Mr. Afnan’s interview, “It starts with the consumer”. For example, the 200+ flavors of Chupa Chup are

tailored according to the region and are not all available at every location. Unique flavors like blueberry,
strawberry and orange are preferred in the West, however, in countries like India, they like mango-filled

tangy flavors.

Family also greatly influences one’s confectionery item choices. A group member, Aiyla,

mentions that since her mother is diabetic, they always purchase sugar-free drinks, biscuits,

and chewing gums for the entire household. Aiyla shares that even when she is around her

friends and there is no influence to get a Coke Zero, she still ends up ordering it since her

habit has been formed. Similarly social groups such as friends greatly impact confectionery

item choices as these are low-ticket items and people do not mind trying new products.

Beliefs and Values


One of the psychological factors that influence consumer behavior is the belief and value

system of a consumer. Tastes and preferences are influenced beliefs and values. These

beliefs and values greatly determine the choice of products made by the consumer. They tend

to buy products that align with their values. As Mr.Afnan mentioned, with the growing

consumer awareness and education, Perfetti has shifted towards more responsible and

sustainable packaging. Apart from mentioning portion sizes, sugar content, etc. on the

packaging, they have also started investing in environmentally friendly and recyclable

packaging.

Age and Life Cycle Stage


As time goes on, a consumer’s confectionary habits mature. A consumer’s needs alter at different

stages in their life. For example, at a younger age, one may prefer more sour flavors to enjoy the tangy

feeling. This could be due to the fact that at a younger age a consumer’s confectionary habits revolve

primarily around getting a rush from the product. This preference may eventually evolve into a taste or

need for a confectionary product that is both enjoyable however also retains a mint fresh odor. As a

consumer progresses through different demographic classes, their confectionary habits change. One of

Perfetti Van Melle’s best-selling products, Mentos, ensure that they offer a wide variety of flavors and

products in order to retain a consumer. Habitual buyers develop a sense of loyalty to their favorite brand.
As a consumer matures, the onus is on the products to mature with them. Confectionary brands that

understand this consumer behavior are able to retain consumers for the long-term.

Amongst our group many of us have noticed this behavior in our own consumption habits. Hassan Imran

once impulsively bought a packet of watermelon flavored gum at the checkout counter of a grocery

store. The gum was manufactured by the Wrigley company and was branded as “5.” Hassan immensely

enjoyed the flavor of this gum and quickly became a habitual buyer. As he progressed from middle

school to university, he began searching for flavors that would leave a fresher after taste and scent. Since

he already trusted the quality of the brand’s gum it was easy for him to switch flavors within the same

brand as opposed to experimenting with other brands.

Type of Buying Behavior


A customer buying any confectionery for his personal consumption would come under variety seeking

behavior. These items have a low price hence there is low involvement from the consumer’s side. A

consumer will make the final decisions at the checkout counter impulsively. To achieve instant

gratification, the consumer will probably buy the chocolate in a singular count. The choice entirely

depends on one’s mood and these confectionery items are placed at checkout centers as mentioned by

Sir Afnan to attract more impulsive buying. Moreover, there is a significant perceived difference among

confectionery products since even a same product line has a number of variations such as dairy milk has

plain, silk, bubbly etc. While all these essentially have the same base product but small differences have

been created by brands keeping in view the variety seeking behavior of confectionery products’ buyers.

However, we analyzed that in certain situations the behavior is not exactly variety seeking. One of our

group members, Mahnoor, mentioned that a few pre-decided confectionery items are always added to

the grocery list which is then given to her younger brother as lunch; these items include chocolate chip

biscuit and perk chocolate. This suggests that when the purchaser and initiator are a parent, they are

likely to exhibit habitual buying behavior as they see little or no difference among brands.

In addition, we take the same example as parents buying chocolates as a gift for a birthday party. Now

the parents want to buy it for another child. Here the birthday party is initiator. In this case, the packaging

of chocolate itself or the salesman is the influencer as Mr. Afnan mentioned that between the product
and customer, the packaging is the first medium. In this case, the end user is the birthday boy and

decider, and buyer roles are played by the parents.

If the gift is for a friend from a friend, the decisions can be different and will involve different buying

behavior. Consumers will keep in mind the choice of the final consumer. This is known as dissonance

buying behavior because of the involvement of the consumer in the purchase decision. Here, time is

spent on information search in evaluating alternatives.

Buying Quantity and Consumer Behavior


Another important aspect to notice is that while majorly in Pakistan confectionery items are bought in

mono-pieces and on a daily basis. There are certain instances when the buying quantity is large and that

is greatly influenced by the use of the confectionery item. A person buying sweets for his/her birthday

may carefully think and evaluate alternatives and then buy them in bulk. Whereas a person buying to

consume the item on the go will buy a mono-piece packaging. One of the group members, Shanzah,

shares that while she does not consume confectionery items normally but as exam season starts, she

buys a large quantity of sour candies and drinks. This large quantity satisfies mid-night binge eating.

Such examples depict that the purpose of the purchase greatly influences the quantity. Similarly,

confectionery items popular for school lunch such as orange juices, jellies and biscuits are bought in

large quantities.

Economic Environment
An exceptional difference in consumer buying behavior was mentioned by Mr.Afnan where

he highlighted how the consumers of developing countries differed in purchasing habits than

the developed countries. Consumers of confectionery products in developing countries have

higher price sensitivity due to low disposable income and uncertain conditions. Since the

consumers are price sensitive these items are kept as low-ticket items, such as in Pakistan there

used to be Rs 1 candies and Rs 5 chocolates. Coins were normally used for such small items.

However, due to inflation that is not the case anymore. Moreover, consumers are also price

sensitive due to the nature of the purchase which is that it is an impulse buy and normally
lowpriced items are bought while skipping buying decision steps; information search and

evaluating alternatives. Higher price sensitivity is primarily the reason why local brands such

as Hilal dominate the market, because given the high exchange rate in Pakistan buying imported

confectionery items is really costly.

Given the consumer attitude towards confectionery items, the market also has to adapt such as

in Pakistan consumers are more price sensitive as compared to Europe and America. Hence,

unlike western countries where bulk buying from Costco and other stores is common, the

trading format in Pakistan is different. “Kiryana” stores are popular in Pakistan whereby the

inventory level is also low, and the quantity bought by the consumers is also low. The market

strategies tend to differ for each consumer segment. Trade has also adapted to the high price

sensitivity and hence confectionery items are sold as mono pieces (single pieces). One of the

group members, Shahzah, can relate to this as she mentions that despite having to do grocery

shopping once a month, she regularly visits these small convenience shops to get small

confectionery items such as chocolates for her nieces.

Hassan Imran, our group member, shared a nostalgic story upon the discussion of kiryana

stores. Growing up in a small neighborhood of Lahore, he would get Rs. 10 from his home to

spend every day and he would save it the entire week to spend it all on Friday at the kiryana

store by the end of his street. He would stock up on his favorite chocolates and gums for the

weekend. Locally produced sweets were mostly picked because of affordability and

availability.
Covid-19
The confectionary consumer habits have drastically changed due to Covid-19. As previously

mentioned, confectionary products are impulse purchases and their sale greatly depends on

the end of the shopping experience. Confectionary products are placed in aisles near the cash

counter and some are even placed at the point of payment. Hence, the nature of the purchase

of confectionery items suggests that they never make it to the grocery list for the majority of

the customers.
Recalling our own shopping experience during covid, one of the group members mentions that

they did their entire grocery online, which meant only the items they searched and added to

the online cart were bought by them.

Another member, Aiyla, recalls how grocery shopping pre-covid used to be a fun activity on a

Sunday as she thoroughly enjoyed looking at new products and buying household items.

However, her attitude towards grocery shopping has drastically changed as she mentions

during lockdown, she used to get grocery items from a nearby convenience store as soon as

it opened in the morning. The anxiety and rush to quickly buy everything before the store gets

crowded meant that she only bought the things that were necessary. Soon, she shifted to using

AirLift for groceries during the lockdown. Despite the lockdown lifted, her family still continues

to use the same app for online shopping. This means that consumers might never visit grocery

stores and shops the same way post-covid as they have adapted to online shopping. This has

greatly impacted the in-store sales of confectionery items. Another popular point-of-sale of

confectionery items was the duty-free shops at the airports. With little to no travelers, the sales

have dropped drastically.

However, such conditions do not mean that the desire/motivation to purchase confectionery

products has ceased to exist. But, rather the distribution part of the 4Ps will need to be

rethought and newer campaigns will be used to stimulate demand from the same customers.

One such example was shared in the video, online sales of confectionery items greatly rose.

Moreover, it was mentioned that the major customer segment of confectionery items are the

children, while they are at home, but still there is a need to entertain them. Hence, packages

will be built around such as games and applications could be built by the confectionery brands

where there could be in-app purchases. Online contests could be held to reinforce

confectionery brands and act as a stimuli or initiator for the purchase. Another idea that could

be implemented in online grocery apps could be through partnerships with major online

grocery retailers such GrocerApp, AirLift. The initiative could be very similar to actual shops

whereby as soon as the customer confirms his/her cart and presses the option to confirm, a
dialogue box could open asking the customers if they want to add something from the

categories of sweets. The customer could exit and continue with their original cart or add a

few confectionery items.

While all the above discussion talked about the lack of the initiator ie going to the shop and

getting the impulse to buy a confectionery item while shopping other items. Another important

aspect that the product development needs to consider is the popularity of unconventional

confectionery items such as multi-vitamin gummy bears. In the beginning of the course we

listened to a podcast regarding the change in consumer drivers due to COVID. The wellness

driver was dominant for the food and drink industry and does apply to confectionery as well.

If we look around, people are looking for more responsible and healthier substitutes such as

low calorie cookies or even sugar-free items. One of our group members, Aiyla, has the habit

of buying only sugar free chewing gum, biscuits and soda. Hence, the trends for the

confectionery industry have drastically changed.

Advertisement as a Stimulus

Younger age groups and adults with a sweet craving are typically the target markets for confectionery

businesses. Advertising becomes necessary because, as the managing director of Perfetti puts it, "it

(candy) is always bought impulsively because the consumer likes it." In most cases, consumers do not

decide beforehand that they would get confectionery before visiting a certain store. Because a product

as little and unremarkable as candy can easily be overseen at the cash register, where the customer only

remains for a few seconds, the appropriate kind of advertising and marketing campaigns become vitally

crucial.

It is difficult to build attention for your brand in the minds of consumers unless your product is

wonderfully packaged or well publicized, allowing the buyer to distinguish it from competitive brands.

Marketing is usually an external stimulus that initiates purchase from the consumer or helps in need

recognition. In this regard, Perfetti has done a fantastic job. It has not only developed a space for

youngsters, but it has also been targeting adults with well-targeted marketing in recent years. Perfetti's

insight appears to be playing on the nostalgic feelings that people get when recalling items from their
childhood, even if it's something as inconsequential as candy. I saw an advertisement by Dairy milk that

had a car filled with kids. It was driving in a world made out of chocolate. Even now, after 10 years of

the ad`s publication, I see people bonding over their love for that Ad, and the feelings that it made them

feel. AD’s for Perfetti's brand "Chupa Chup." probe emotional feelings inside consumers too. A

commercial depicted two scenarios of people playing hide and seek, one in which the participants are

youngsters and the other in which the same children have grown up. In both situations, the individuals

were consuming Chupa Chups, thereby creating a consistent connection. Another Indian advert shows

a teacher coming in a class to presumably scold students, and then instead offers all the scared

classmates Chupa Chups lollipops. Even on a personal level, this seems relatable. Perfetti is a success

because it brings a smile to our faces every time we encounter confectionery from our childhood,

something that reminds us of a simpler time.

Mentos, another product of Perfetti, has a commercial titled "It is easy to connect, with a little help”. It

is based on the concept of building connections, which is something that today's youth lacks completely.

Children remotely guide conversations that individuals have with strangers, people that the children

choose themselves too. The innocence, wholesomeness, and the resulting connection established works

very well for mentos, and its placement.

It is important to consider how businesses have been impacted significantly by Covid-19. Due to the

nature of impulsive buying, it has been substantially worse for confectionery brands. Sales plummeted

because customers no longer visited superstores, and as such less consumers were in brick-and-mortar

shops looking at the bright packaging of confectionery. Perfetti's advertisement successfully achieved

its objectives by relaying to its consumers that there is still something to look forward to at this time of

uncertainty, thereby mitigating and reminding them that the brand cares about them. Even while a direct

impact on sales cannot be foreseen or concluded, the commercial does help Perfetti stand out by

appealing to the emotions.

Conclusion
The various influencers impacting consumer behavior and attitude towards confectionery

products have been discussed in detail in the assignment. It has been observed that marketing,
packaging, shelf arrangement and other macro as well as micro factors greatly influence the

buying process of a confectionery consumer.

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