STRATEGIC ANALYSIS on CHOCOLATE in

CONFECTIONARY INDUSTRY

BYA.SOWMYA13HM06NITK MBA 2013-15

Introduction• Indians like to celebrate with sweets and they

start relishing it at a pretty young age. • While the West may be more calorie

conscious, the Indian kids start off by indulging in all sorts of sugar boiled candies.

• No wonder, the confectionery industry is one of the largest and well developed among the food processing sectors in the country.

• The confectionery industry in India is mostly divided into chocolates, hard boiled candies, éclairs & toffees, chewing & bubble gums, lollipops, and mints & lozenges.

ManufacturersThe organized confectionery segment in India segment is

dominated by the multinational companies; however,

domestic players are increasingly 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.

• The CAMPCO Ltd is a leading processor of cocoa and cocoa

based industrial products and has a small presence in the

branded chocolate sector.

Mission

"Cadbury’s 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 our promise is delivered’

Vision

The Barrow Cadbury Trust’s vision is of a peaceful, equitable society, free from discrimination and based on the principle of social 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

• BRANDSTEMPTATIONS OREO DAIRYMILKPERK 5STAR

NestleVision

“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

occasions, from morning to night.

• BRANDS

Milkybar

MILKMAID

EVERYDAY DAIRY WHITENER

KITKAT

BARONE

POLO

AMULVision

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

Mission Expansion of distribution network, creative marketing, consumer education and product innovation.

OBJECTIVETo ensure that the maximum share of the consumer’s rupee goes back to the milk producers.

• BRANDS

FUNDOO

AMUL COOKING CHOCLOATE

FRUIT & NUT

CHOCOZOO

BINDAZZ

CAMPCOThe 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

prevails.

Objectives

To export areca nut and cocoa and other products.

To procure areca nut and cocoa from growers on

agency basis 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.

• BRANDSMelto CreamTreatTurboMegabyte CAMPCO mini bar Éclairs KrustKrunchos

LOTTE INDIA CORPORATION Ltd.Vision

Enhance its world leadership in confectionary by creating value for people through delightful and imaginative high quality productsMission

To develop, manufacture and market high quality and innovative products for their consumers through efficient use of their resources and in partnership with their customers. And to create a fulfilling workplace for their employees built on trust ,mutual respect and appreciation of their diversity. 

• Core values Costumer focus

Originality

Partner ship

Responsibility

Passion

• BRANDS BOOPROO

SPOUT

Coffee Bite

Lacto King

Chocopie

Caramilk

COMPANY

STRENGHTS WEAKNESS

OPPORTUNITY THREATS

CADBURY’S

• Well known brand & Priced according to Indian mindset.

• Strong marketing and distribution channel.

• Lack of penetration in rural market

• Large population suffers from diabetes, cholesterol disorders etc.

• Occasion celebrations and festivals in India.

• Increasing acceptance of Globalization & chocolate market.

• No brand loyalty in the chocolate market.

• Other substitutes (sweets and deserts)& brands.

• New variants

NESTLE

• Unmatched product and brand portfolio.

• R&D capabilities.

• Distribution channels and geographic presence.

• Inability to provide consistent quality in food products

• Weak implementation of CSR

• Increasing demand for healthier food products.

• Acquiring start-ups specializing in producing well-being products

• Establishing new joint ventures.

• Food contamination.

• Trend towards healthy eating.

• Growth of private labels.

• Rising raw food prices.

LOTTE

• Totally focused on chocolate, candy, chewing gum.

• South Korea’s No.1 confectioner.

• Parry confectionary Ltd. was the first to introduce sweets in India.

• Dependent on the confectionery and beverage market.

• Less international experience.

• Changes in consumer tastes and preferences Significant opportunities to emerge into China and Russia where populations are growing.

• Competitive pressures.

• Competitive pressures.

• Nutrition and healthier lifestyles .

CAMPCO

• Market Expansion.

• Easy availability of funds.

• Less tax. • Governm

ent Clearances.

• Encouragement for farmers.

• Poor Brand image.

• Availability of Labour

• Lack of competitive initiative from the top level management

• Very poor marketing strategy

• Co-operative society

AMUL

The company is having Indian origin thus creating feeling of oneness in the mind of the customers.It manufactures only milk and milk products, which is purely vegetarian thus providing quality confidence in the minds of the customers.It is aiming at rural segment, which covers a large area of loyal customers, which other companies had failed to do.

•There are various big players in the chocolate market, which acts as major competitors restricting their growth. •Lack of capital invested as compared to other companies.•Improper distribution channel in India.

•There is a lot of potential for growth and development as huge population stay in rural market where other companies are not targeting.•The chocolate market is at growth stage with very less competition so by introducing new brand and intensive advertising there can be a very good scope in future.

•The major threat is from other companies who hold the majority share of consumers in Indian market i.e. Cadburys and Nestle. •There exists no brand loyalty in the chocolate market and consumers frequently shift their brands.•New companies’ entering in Indian market like Fantasies fine poses lot problems for Amul.

COMPANY

SEGMENT

TARGETPOSITIO

N

CADBURY’S

People who buy chocolates for

eating or gifting

Children and families

belonging to lower, middle

and upper middle class

As a sweet for happy

occasions or auspicious beginning

NESTLE

People looking for premium quality, and

branded products like foods, dairy

products, baby food, pet food,

confectioneries, etc.

Urban middle and upper

middle class

A world class brand providing

good quality, healthy and

tasty food and beverages

LOTTEPeople looking to

have gum and candy

Children and families

belonging to lower, middle

and upper middle class

Positioned as a brand that

children have grown up with

AMULQuality

conscious children and

adults

Kids and youthTaste of India by

giving them quality products

STP

COMPANY

TAGLINE USPCOMPETI

TIORS

CADBURY’S

Kuch meetha ho jaye; Your

happiness loves Cadbury

One of the biggest and most

trusted confectionery and

foods brand

MarsNestle

NESTLE Good Food, Good Life

The biggest health and

wellness brand in the world, top

brand in Fortune 500 list

Kraft FoodsParle

Unilever

LOTTEIt has brands that

children have grown up with.

Lotus ChocolateNestle

Kraft Foods Parle ITC

AMUL Taste of India Quality and affordability

CadburysNestle

Mars(with all its child brands)

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 performed a 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 TV…at 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.