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/