The Hindu Business Line : Campco adopts low-price-point strategy to push chocolates

THE Mangalore-based Central Arecanut and Cocoa Marketing and Processing Co-operative Ltd (Campco) seems to have adopted the strategy of "low price point" to market its chocolate products to a large chunk of middle-class customers.

The co-operative organisation, which has a chocolate manufacturing unit in Puttur of Dakshina Kannada district, is planning to reintroduce its chocolate products, however, in a new form. These products will be launched by the Karnataka Minister for Co-operation, Mr H. Vishwanath, in Puttur on Wednesday.

Sources in Campco told Business Line that the enrobed chocolate products — `Turbo' and `Treat' — have been given a new look. Turbo with a new design will also be introduced in Rs 3 pack, apart from the existing Rs 5 pack. The new strategy is aimed at expanding the chocolate market for Campco brands. Another product of enrobed chocolate segment, Campco Bar, which is sold at Rs 10 for a 45-gm pack, will be sold at Rs 2 for a 9-gm pack under Campco Mini Bar segment.

The expansion of the brown beverages market has come as a boon to `Winner' chocolate drink product. Sources claim that Winner is an instant chocolate drink placed at low price range.

A 500-gm pack of Winner costs Rs 65, whereas other company brands in this segment cost more than Rs 120 for a 500-gm pack. The market share of Winner has grown by 42 per cent in drinking chocolate segment.

Campco has also modified its machinery to manufacture `Playtime' éclairs that used to be manufactured earlier by an outside agency.

The organisation's share in arecanut market seems to have helped it in expanding its chocolate market.

It has a strong market presence in Karnataka and Kerala, as most of the members of this co-operative organisation are from these States. This has helped it garner more than half of its chocolate market in the southern States.

Having presence in almost every State, Campco's chocolate products are being sold in nearly one-lakh outlets in the country. Sources say that nearly 40 per cent of the outlets in Uttar Pradesh sell Campco chocolate products.

It has 22 area sales offices and regional offices in Kolkata, Lucknow, Delhi, Hyderabad, Bangalore, and Mumbai. Major arecanut markets such as Delhi, Himachal Pradesh, Punjab, Haryana, and Uttar Pradesh account for 38 per cent of the total chocolate market of Campco.

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