Kandos Choco
Market
Chocolates – like ice cream, toothpaste and milk powder – have universal appeal across all demographics and cultures. But unlike toothpaste and milk powder, chocolate is not considered an absolute necessity; nor is it endorsed by opinion leaders. In fact, dentists and nutritionists often ‘de-market’ the product – especially since it is perceived as being a product that is generally not suitable for children. Despite these constraints, the Western influence of chocolate as a snack, reward or gift has gained universal acceptance. The habit of chocolate being given as a gift between loved ones, friends and relatives is widespread – and in this respect, chocolate often triumphs over flowers as the gift of choice. The best evidence of this is on Valentine’s Day, seasonal and religious events such as Christmas and New
Year, and birthdays and anniversaries. Chocolate is also a popular impulse item, where purchasing is influenced by visibility in stores and by packaging. The Sri Lankan chocolate market has been dominated by many local players. But Kandos is the undisputed market leader, enjoying a 56% market share. The total imported brand share is less than 5% in Sri Lanka, which is unusual considering the fact that India as well as other markets in the region are being dominated by foreign brands, which account for more than
90% of their chocolate brands.
Kandos, however, has a strong base. It was the premier chocolate long before foreign competitors and local imitators arrived on the scene. The local consumer has been exposed to the unique taste of Kandos for the past 44 years, thereby ensuring brand loyalty. The market is now quite sophisticated, with many pack designs, display configurations, chocolate flavours
and pack sizes on offer. The Kandos brand has recognised the value of segmentation and it reaches each market segment in unique ways.
All this has combined to make it not just a successful Sri Lankan brand,
Chocolates – like ice cream, toothpaste and milk powder – have universal appeal across all demographics and cultures. But unlike toothpaste and milk powder, chocolate is not considered an absolute necessity; nor is it endorsed by opinion leaders. In fact, dentists and nutritionists often ‘de-market’ the product – especially since it is perceived as being a product that is generally not suitable for children. Despite these constraints, the Western influence of chocolate as a snack, reward or gift has gained universal acceptance. The habit of chocolate being given as a gift between loved ones, friends and relatives is widespread – and in this respect, chocolate often triumphs over flowers as the gift of choice. The best evidence of this is on Valentine’s Day, seasonal and religious events such as Christmas and New
Year, and birthdays and anniversaries. Chocolate is also a popular impulse item, where purchasing is influenced by visibility in stores and by packaging. The Sri Lankan chocolate market has been dominated by many local players. But Kandos is the undisputed market leader, enjoying a 56% market share. The total imported brand share is less than 5% in Sri Lanka, which is unusual considering the fact that India as well as other markets in the region are being dominated by foreign brands, which account for more than
90% of their chocolate brands.
Kandos, however, has a strong base. It was the premier chocolate long before foreign competitors and local imitators arrived on the scene. The local consumer has been exposed to the unique taste of Kandos for the past 44 years, thereby ensuring brand loyalty. The market is now quite sophisticated, with many pack designs, display configurations, chocolate flavours
and pack sizes on offer. The Kandos brand has recognised the value of segmentation and it reaches each market segment in unique ways.
All this has combined to make it not just a successful Sri Lankan brand,