Besides cocking a snook at Perfetti's brand `Big Babol', with the launch of a 50-paise bubble gum Candico is all set to bring about big changes in the Re 1 organised gum segment. ``We are trying to make Big an irresistible buy, the lead brand to open up new markets,'' says A K Khaneja, deputy general manager, brands & relationships, Candico. Perfetti sources, when contacted, refused to comment on the Big relaunch.

As part of the launch promotion,Candico is offering 30 postcards of celebrities such as Sachin Tendulkar, Shahrukh Khan, Kajol, Aamir Khan and Ajay Jadeja, on the purchase of six Big bubble gums.

Targeted at children in the age group 8 to 14 years, and belonging to SEC C & D, Big is being distributed nationally across all towns with population over 25,000. Launched in two phases starting August 1999, Candico claims to have covered seven states--J&K, Himachal Pradesh, Kerala, Andhra Pradesh, and the North East--so far.

The company expects to cover about 2.25 lakh outlets nationally. Candico expects Big to piggyback on the distribution network of its established 25-paise chewing-ball gum brand Jumbo Gumbo. ``The consumer profile of the two brands Big and Jumbo Gumbo is common. Through these convenient price points, we will reach out to C & D class distributors,'' says Khaneja. At 250 tonne per annum, Jumbo Gumbo is the only product from the organised sector in the 25-paise category.

While the unorganised sector offers bubble gums for 50paise, Big will be the first branded product from the organised sector in the 50-paise category. It will thus compete against the Re 1 brands such as Boomer from JoyCo, Big Babol from Perfetti and Candico's Freedom. Says Khaneja: ``Big is comparable in looks and taste to any Re 1 gum in the market.''

Adds a Delhi-based Candico distributor Harish Bajaj of Sawan Enterprises: ``Big will definitely affect sales of some of the multinational brands.''

Not to forget, Candico's own brand Freedom. Candico expects some overlapping in sales at outlets which store both Freedom and Big. But, Khaneja insists that the bigger chunk of Big chewers will be first-time bubble gum users and converts from local brands. While Perfetti spokesperson Ashok Dhingra refused to comment, Arun Hegde, managing director JoyCo claimed he did not know about the Big launch.

Candico claims that the product offers superior packaging, better taste, and bigger bubbles over the local brands from the unorgansied sector which till now, accountedfor about 600 tonne. The organised market for Re 1 price category gums is about 950 tonne. While Freedom claims a 16 per cent market share, and Big Babol 37 per cent, Boomer has chewed up a leading 47 per cent share.

To ensure prominent display and push for Big at the retail end, Candico is pushing a retailer scheme where each 150-unit Big dispenser comes with either a coupon for a Rs 5 discount or a silver coin. Candico expects to give away 50,000 coins.

Interestingly, Big's wrapper does not mention its 50 paise MRP. According to Khaneja, it is not mandatory to mention MRP on any product weighing less than 20 gm. However, distributors fear that in the initial stage, Big may end up being sold for Re 1 instead of 50 paise, with the retailer taking advantage of the consumer's ignorance.

This is particularly true, as Candico is relying only on PoP and PoS material to communicate the price benefit of Big--and has no plans to advertise the low-margin brand right now. The company may advertise the brand onlyby April 2000.

``A retailer is likely to take advantage of the product's good packaging and sell it at Re 1 instead of 50 paise,'' says Harish Bajaj, a Delhi-based distributor. He, however, adds: ``It will only be a temporary phase till consumers come to know about the price through the market.''

With an ambitious launch-year target of 3,000 metric tonne, Candico hopes to grow the organised market for bubble gums by about 200 tonne to 1,150 tonne. ``We will capture about 35 per cent of the organised sector,'' says Khaneja.

The chewing-gum market is currently growing at the rate of 12 per cent per annum as against a healthy rate of 15 per cent in the last three years. According to Khaneja, the confectionery industry is booming and is expected to grow to a size of Rs 2,400-crore by the turn of the century.

Schemes for retail support

In a bid to penetrate deeper, Candico is wooing the trade--both retailers and distributors--with contests and prizes. It is currently pushing a Rs 1.3-crore schemenationally for the Jumbo Gumbo brand. Launched on July 1, `Jumbo Gumbo Dhamaka' was initially open till September 30, 1999 but has now been extended to October 31. In addition, Candico has just concluded a three-month, multi-brand scheme (June to August 1999) called the Baisakhi Summer Bonanza, targeted at Delhi-based retailers.

``The aim is to increase outlet-reach and penetration,'' says A K Khaneja, deputy general manager, brand & relationships, Candico. According to him, with Jumbo Gumbo Dhamaka, sales of the brand at the end of August 1999 have shot up 2.2 times, or by 120 per cent, when compared July 1999. ``More importantly, credibility with the trade is very high at the moment,'' says Khaneja.

Besides prizes which include a Maruti 800 car, over 1 kg of gold, 125 Tanishq gold coins, and 50 Titan Gold watches, the gifts also include free Jumbo Gumbo jars or discount coupons worth Rs 10 or Rs 2.50. The scheme's success, according to the company, is due to the instant redemption of coupons as againstother schemes, where it takes time. Candico claims, the scheme has also ensured improved cash flow and increased return on investment.

The distributor, on the other hand, can compete for the prizes through coupons for every 25 cartons of Jumbo Gumbo sold.