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STRATEGIC ANALYSIS on CHOCOLATE

in CONFECTIONARY INDUSTRY

BY

A.SOWMYA

13HM06

NITK

MBA 2013 15


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Introduction

Indians like to celebrate with sweets andthey start relishing it at a pretty young age.

While the West may be more calorieconscious, the Indian kids start off by

indulging in all sorts of sugar boiledcandies.

No wonder, the confectionery industry is

one of the largest and well developedamong the food processing sectors in thecountry.

The confectionery industry in India is


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Manufacturers

The organized confectionery segment in India segment is dominated

by the multinational companies; however, domestic players areincreasingly finding a prominent position in the market. The key

players in the confectionery sector in India today are:

Cadbury India Ltd is the largest manufacturer of chocolate,confectionery and malted food products.

Nestle India Ltd is a manufacturer and marketer of coffee, tea,

malted beverages, instant baby cereals & foods, milk products,

chocolates and confectionery, instant foods and culinary products.

Lotte India Corporation Ltd is primarily a manufacturer and marketer

of sugar boiled confectionery, cocoa and milk based toffees, candies

and mints.


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Mission

"Cadburys mission statement says simply: Cadbury means

quality; this is our promise. Our reputation is built upon quality;our commitment to continuous improvement will ensure that ourpromise is delivered

Vision

The Barrow Cadbury Trusts vision is of a peaceful, equitablesociety, free from discrimination and based on the principle ofsocial justice for all.

Objective

to make lots of chocolate.

improve the quality of their chocolate.

To Survive in the market.

Have loads of stores worldwide


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BRANDS

TEMPTATIONS

OREODAIRYMILK

PERK

5STAR


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Nestle

Vision

Respected, Trustworthy Food, Nutrition,

Health and Wellness Company

Mission

GOOD FOOD NESTLE GOOD LIFE

Their mission is to provide consumers with

the best tasting, most nutritious choices in a wide

range of food and beverage categories and eating


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BRANDS

Milkybar

MILKMAID

EVERYDAY DAIRY WHITENER

KITKAT

BARONE

POLO


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AMUL

Vision

The taste of India is to be a part of everyone'slife.

Mission

Expansion of distribution network, creativemarketing, consumer education and productinnovation.

OBJECTIVE

To ensure that the maximum share of theconsumers rupee goes back to the milk

roducers.


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BRANDS

FUNDOO

AMUL COOKING CHOCLOATE

FRUIT & NUT

CHOCOZOO

BINDAZZ


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CAMPCO

The Central Areca nut and Cocoa Marketing and Processing

Co-operative Limited or CAMPCO.

Vision

To help the farmers procure more areca nut and cocoa,

thereby helping them to get a market for their products.

Mission

To bring about

Co-operation between people

Harmony between faiths &

To make sure the fragrance of peace forever


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Objectives

To export areca nut and cocoa and other products.

To procure areca nut and cocoa from growers on agencybasis or on outright purchase basis.

To open branches, depot & go downs, showrooms and

factories etc..

To undertake pooling, packing and standardization of areca

nut and cocoa.


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BRANDS

Melto

CreamTreat

Turbo

MegabyteCAMPCO mini bar

clairs

Krust

Krunchos


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LOTTE INDIA CORPORATION Ltd.

Vision

Enhance its world leadership inconfectionary by creating value for peoplethrough delightful and imaginative high quality

productsMission

To develop, manufacture and market high

quality and innovative products for theirconsumers through efficient use of theirresources and in partnership with their

customers. And to create a fulfilling workplace


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Core values

Costumer focus

Originality

Partner shipResponsibility

Passion

BRANDS

BOOPROO

SPOUT

Coffee BiteLacto King

Chocopie

Caramilk


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COMPANY

STRENGHTS WEAKNESS OPPORTUNITY THREATS

C D URYS

Well knownbrand &Priced

accordingto Indianmindset.

Strongmarketing

anddistributionchannel.

Lack ofpenetrationin rural

market Large

populationsuffers fromdiabetes,

cholesteroldisordersetc.

Occasioncelebrationsand festivals

in India. Increasing

acceptanceofGlobalization

& chocolatemarket.

No brandloyalty inthe

chocolatemarket.

Othersubstitutes (sweets

anddeserts)&brands.

Newvariants

Unmatchedproduct andbrandportfolio.

R&D

capabilities. Distribution

Inability toprovideconsistentquality infood

products Weak

Increasingdemand forhealthierfoodproducts.

Acquiringstart-ups

Foodcontamination.

Trendtowards

healthyeating.

Totally D d t Ch i C titi


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LOTTE

Totallyfocused onchocolate,candy,chewing

gum. SouthKoreasNo.1confectioner.

Parry

confectionary Ltd. wasthe first tointroducesweets inIndia.

Dependenton theconfectionery andbeverage

market. Less

internationalexperience

.

Changes inconsumertastes andpreferencesSignificant

opportunities to emergeinto Chinaand Russiawhere

populationsaregrowing.

Competitivepressures.

Competitive

pressures. Nutrition

andhealthierlifestyles .

MarketExpansion.

Easyavailabilityof funds.

Less tax.

Poor Brandimage.

Availabilityof Labour

Lack of

competitive

Co-operativesociety

The There are There is a lot The major


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AMUL

Thecompany ishaving Indianorigin thuscreating

feeling ofoneness inthe mind ofthecustomers.

Itmanufacturesonly milk andmilk products,which is

purelyvegetarianthus providingqualityconfidence inthe minds ofthe

There arevarious bigplayers in thechocolatemarket, which

acts as majorcompetitorsrestrictingtheir growth.Lack of

capitalinvested ascompared toothercompanies.

Improperdistributionchannel inIndia.

There is a lotof potential forgrowth anddevelopmentas huge

populationstay in ruralmarket whereothercompanies

are nottargeting.Thechocolatemarket is at

growth stagewith very lesscompetition soby introducingnew brandand intensiveadvertising

The majorthreat is fromothercompanieswho hold the

majority shareof consumersin Indianmarket i.e.Cadburys and

Nestle.There existsno brandloyalty in thechocolate

market andconsumersfrequentlyshift theirbrands.Newcompanies


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COMPANY SEGMENT TARGET POSITION

C D URYS

People who buychocolates for

eating or gifting

Children andfamilies belongingto lower, middle

and upper middleclass

As a sweet forhappy occasions

or auspiciousbeginning

NESTLE

People looking forpremium quality,and brandedproducts likefoods, dairy

products, babyfood, pet food,

confectioneries,etc.

Urban middle andupper middle

class

A world classbrand providing

good quality,healthy and tasty

food andbeverages

LOTTE

People looking tohave gum and

Children and

families belongingto lower, middle

Positioned as a

brand that children

STP


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COMPANY TAGLINE USP

COMPETITI

ORS

C D URYS

Kuch meetha ho

jaye; Yourhappiness loves

Cadbury

One of the biggest

and most trustedconfectionery and

foods brand

MarsNestle

NESTLE

Good Food, GoodLife

The biggest healthand wellness brand

in the world, topbrand in Fortune500 list

Kraft Foods

ParleUnilever

LOTTE

It has brands that

children have grownup with.

Lotus ChocolateNestle

Kraft FoodsParleITC

AMUL Taste of IndiaQuality and

CadburysNestle

Mars(with all its


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CONCLUSION

Cadbury is a very old trusted name.

Cadbury is an organization which impacts and interacts with the consumers. Cadbury

is present in most happy occasions in the life of our consumer.

Chocolate Ads shift focus from KIDS to YOUTH. Indian chocolate market is almost

totally depended on purchases of kids. In recent times, the chocolate majors,

Cadburys and Nestle took major initiatives to bring in grown-ups into this market.

Nestle introduced an innovative LIQUID CHOCOLATE CHOCO STICK at a price

tag of Rs. 2/-which was in instant hit.

CAMPCO willingly took up the responsibility to enter the cocoa market and performeda saviors role. As a strategy for survival in the International scene the CAMPCO

played a major role in establishing a name for Indian Cocoa, which hitherto had not

been achieved.

However, the company does not have much visibility in the Indian market. No

advertising are seen being aired on TVat least not on the prime channels. The

company seems to have restricted its marketing efforts in south India only.

The space allocated for the chocolates was less when compared to the total area of

the shop. Of the space allocated for chocolates, Cadbury brands occupied more than

other brands. The chocolates category thrives on excitement. Its all about giving the

consumer a choice and taste which they enjoy.


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