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Chocolate Industry
BY:Ankita Sinha
(355)Aslesha Gupta
(310)Somya Matta
(314)Radhika
Sharda (369)Ronak Vora
(374)Zeus
Environmental Scan
Cadbury
Strengths:Very strong brand
equity in India.Due to its 54 years
presence in India – has deep penetration
Low cost of production due to economic of scale. That means
higher profits
WeaknessPoor technology in India compared to current
international technologies Ltd. Key products, only one central brand (CDM).
Pralines range totally wising in India. “Make in India” tag once the economy opens up wore
and imports rush in.
Opportunities Tremendous scope for per capita consumption
Increasing per capita national income resulting in higher disposable incomeIncreasing gifts cultures.
Substitute to “Mithais” with higher calories/cholesterol.
ThreatsForeign imports
Other branded and local chocolate manufacturersConfectionaries
substitutes
SWOT Analysis
Nestle
Strengths:Strong distribution
network Strong Nestle brand
nameExcellent advertising
and visibilityGood product
distribution and availability
WeaknessRaw material supply – volatile prices
Chocolates – comparatively small business unitFood products have a limited shelf life
Opportunities Diversification: discovering global market
Untapped rural marketsBetter product packaging and preservation
Leverage Nestle's successful brand moreMore Advertising Threats
Foreign importsOther branded and
local chocolate manufacturersConfectionaries
substitutesHealth Concerns
SWOT Analysis
Amul
Strengths:Technical
manpowerDemandMargins
WeaknessProblem in distribution
PerishabilityCompetition
Opportunities Flexibility in Market
Export Potential
ThreatsForeign
multinationals
SWOT Analysis
PEST Analysis• Political: Since the budget range is decontrolled, no political
effects are envisaged.• Economic: 1) Increasing per capita income resulting in higher
disposable income.2) Growing middle class/urban population – increase in demand.3) Low cost of production – better penetration.
• Social: 1) Per capita consumption expected to increase – fashion. 2) Increasing gifts culture – increase in demand .3) Lower cholesterol than “mithais” (sweet meat) subsbstitute demand.
• Technology: Will have to reinforce technology to international levels once India is a “free” economy.
MissionCadbury: Cadbury's means quality: this is our promise. Our
reputation is built upon quality: Our commitment to continuous improvement will ensure that our promise is delivered‘
Nestle: Nestle is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world. With our unique experience of anticipating consumers' needs and creating solutions ,Nestle contributes to your well-being and enhances your quality of life.
Amul: To ensure that the Maximum share of the consumer’s rupee goes back to the milk producers
Vision
Cadbury: "Life Full Of Cadbury and Cadbury Full of Life“ & “A Cadbury in every pocket.”
Nestle: Nestlé Norden’s aim is to meet the various needs of the consumer every day by marketing and selling food of a consistently high quality.
Amul: Amul’s vision is to see an educated, talented and strong youth in a developed India of the future and thereby contribute towards nation building.
Segmentation Targeting Positioning
•Break Segment•Impulse segment•Take home segment
•Kids•Teenagers and adults•For everyone
•Celebration : Variety and gifting•Synonymous with traditional sweet•Something sweet before something new
•Demographic-Age•White chocolate Segment
•All age groups•High, medium and low class
•Energy and strength chocolate•Light-weight Chocolates•Affordable
•Quality conscious children and adult
•Kids and youth •Taste of India by giving then quality products
Brand PortfolioBrand Core
Brand Style
Brand Theme
Brand Strategy:1)Family brand name2)Individual brand name
PHYSIQUE
PERSONA
CULTURE
SELF-IMAGE
REFLECTION
RELATIONSHIP
BRAND PRISM
Cadbury Amul Nestle
Product Cadbury dairy milk 5 – Star Perk Celebrations Temptations Éclairs Gems
Amul MilkAmul Almond bar Amul FundooAmul ChocozoAmul BindaazAmul Fruit & Nut Chocolate
Variety – Classic, Munch, Milky bar, etc.
Place Great distribution channel in Urban as well as rural areas.
General FMCG distribution structure.Also have Small outlets with quote: “Utterly Delicious” in many Rural and urban areas.
-General FMCG distribution structure.-Strong coverage in urban areas, developing in rural.-New Regional Sales Offices to increase width and penetration and focus in rural areas.
Cadbury Amul Nestle
Price -Medium high range product-Rs. 5 pack available for more consumption.
Maximizing the returns involves identifying right price level for each segment, and then progressively moving through them.
Pricing – In line with Cadbury’s offeringsIncentive schemes – eg. Maha munch give more value for the same pricePriced at key price points like Rs.5
Promotion -Advertisement for every one, changing advertisement patterns across different channels. -Covers all channel.-Uses Social Media Marketing
No intensive promotions.
ADVERTISING-Decreased dependence on children’s TV channels over recent years-33% of total industry spend but near equal spend on each brand with rival offerings from Cadbury.
IMC of Cadbury
Advertisement Sales Promotion Public relation
Examples TV commercials HOARDING. MAGAZINES. INTERNET
1. Consumer oriented sales promotion.
2. Trade oriented sales promotion.
SponsorProduct publicityPress releaseSpecial event
Advertisement
Sales PromotionCustomer Oriented
Trade Oriented
Public Relations
CSR at Cadbury
“Corporate Responsibility is one of the things that makes
Cadbury special. It’s been integral to our business for
nearly 200 years since the Cadbury family first sought to
be a ‘force for good in troubled times’. That sense of
ambition remains at Cadbury today.”
- Todd Stitzer
CEO Cadbury
Pioneering cocoa cultivation in India
Bangalore factory: the sun shines at night…
Acknowledged as 'Preserver of Environment‘
Non-formal school set up by Cadbury for children of migrant workers in Baddi (HP) in
association with an NGO called SAHYOG
Cadbury is in a tie-up with Bharti- Walmart to support education needs of
underprivileged children
Sarvam Program
Partnered with Vatsalya Foundation
Gurikha Project
• Cadbury launched a corporate social responsibility Web site called DearCadbury.com
IMC Nestle
Advertisements Sale Promotion Public Relation
TV commercialsHoardingNewspaperPostersElectronic mediaDanglersbuntings
Trade PromotionConsumer Promotion
Company has plans to sponsor events like skiing river rafting, yachting etc.Company will also sponsor fun based TV programs
CSR• CSR is part of Nestlé’s DNA and is inherent in
Nestlé’s Management & Leadership Principles ~ to create long-term value for society
- CSR is built into the Nestlé Corporate Business Principles and is a part of its business strategy.
- Nestlé supports The UN Global Compact’s Principles which are incorporated in the Nestlé Corporate Business Principles ~ as a guide for our business practices
CSR Hierarchy
COMPLIANCELaws, Business Principles, codes of conduct
SUSTAINABILITYProtect the future
CREATESHARED VALUEReduce poverty, Improve health
Empower people
Nestlé's CSR Work
• Nestle in the community• Safe Drinking Water• Education and Training
Amul IMC
• 1st tier
• 2ND tier
• 3rd tier
AMUL CSR
Distribution strategies
Pricing Strategies
Cadbury Market Penetration and differentiated PricingCompetitive Pricing
Nestle Going rate Pricing
Amul
Amul
• Based in Gujarat• No Global
Exposure• Has the potential
and resources but not focused on Chocolates
Cadbury
• 120 countries• 40
confectionaries• Dominates in U.K
and Australia.
Nestlé
• Started in Switzerland
• Expanded all over the world
GLOBAL EXPOSURE
Special Thanks to
kallapa Pattansheti – Brand Manager Cadbury
References
•http://www.kraftfoodscompany.com/in/en/home/index.aspx•http://www.cadburyindia.com/in/en/home/pages/index.aspx•http://www.nestle.in/•http://www.amul.com/products/chocolate.php•http://www.pearsonhighered.com/kotler/