Consumer Buying Behaviour of Sugar Free Gum (Case Study: Perfetti Van Melle)

Name:                   Vishant Dilipkumar Modi (2007 – 2009)

Title:                     Consumer Buying Behaviour of Sugar Free Gum (Case Study: Perfetti Van Melle)

Summary

Basically, the chosen topic is totally new market to study and how it is going to flourish in India. I have conducted consumer research on buying behaviour of sugar free gum, because in our Indian culture we behave completely different in regard to the same product VIS-À-VIS with foreign market. Perfetti van melle is Italian confectionary giant entered India in 1992 through 100 percent subsidy. Sugar free gum market has just started to grow because of increasing number of smokers and dentist patients. In my research I try to understand the when consumer buy sugar free gum what is things that comes into their mind at once and create impulse purchase of the product. What are the attributes they seek in impulse purchase? How the market will revolve in future course? So it is a descriptive research study.

Findings

• Sugar free gum is impulse product so most of consumers behave indifferently to the product availability. It means sugar free gum is inert set in which consumer remains indifferent to brands, whatever is available at the store the consumer will buy it.
• Sugar free gum do not demands brand loyalty, most of time consumer is shifting loyalty to the brands.
• Most of the respondents agree that Happydent is attractive in comparison but when the actual consumption is done it is lying behind the orbit in terms of sweetness, smoothness, protection of tooth.
• Sugar free gum replace the PAAN and mouth freshner, reason behind the fact is that rising awareness of tooth related disease and drawbacks of the chewing PAAN.
• Most of retailers do not keep Happydent because there is high demand for orbit; research shows that 8 out of 10 retailers keep the orbit chewing gum and4 out of 10 retailers keep Happydent.
• There is huge market for sugar free related items in India, 7 out of 10 people is sugar patient in India.
• So far mostly youngsters and smokers are buying the sugar free gum in India, so there is lot’s of market opportunities in India.
• Sugar free gum consumption is likely to increase in future course because the product is competing with local PAAN and mouth freshner. Sugar free gum beat the PAAN in terms of economic criteria and benefit sought from the sugar free gum.
• Number line extensions is done in sugar free gum products, it is done to satisfy the different needs of the consumers.
• There is no specific situation to consume sugar free gum mostly people consume sugar free gum when they want to refresh or when after having meal.
• Company is not focusing on the promotion aspects of Happydent sugar free gum.
• Orbit signed Deepika Padukone as their Brand Ambassador but in case of Happydent no body endorsed it.
• Orbit is official chewing gum for IPL tournament, Happydent so far never done branding to get visibility.
• Most of consumers do not want to buy Happydent but it works as substitute for orbit gum.
• Orbit is leading the sugar free market in north India.

Recommendations

• Perfetti should promote their product in north region, orbit is dominating in market, here company should use different marketing tactics apart from orbit.
• Perfetti is having 49% media space as far as Television is concerned but very less space available for sugar free gum. Company can improve the brand awareness and usage by applying pull strategy.
• Happydent also take into consideration the distribution channel. Orbit is holding the strength as far as distribution is concerned. So Happydent should intensify the distribution channel through push strategy.
• Most of consumers are youngsters so company should tap colleges and theaters to distribute free samples of Happydent sugar free gum.
• Company can also work on the product attributes in case of smoothness; it will also work as just noticeable difference.
• Happydent should also get approved themselves with reputed health agency to win consumer confidence.

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The above article is a summary extract from the dissertation projects of the MBA and BBA students of Skyline College. Skyline, situated in Delhi and Gurgaon (NCR) is a premier institute providing management education specialising in MBA and BBA degrees and specialist courses for travel and tourism as well as mass communication.