IMC PLAN

ON

SUBMITTED TO:

PROF. ARVIND TRIPATHY

SUBMITTED BY:

ISHITA (074)

RASHI GOYENKA (075)

POONAM MISHRA (058)

SIKHA SINHA (089)

MANISHA VISWAKARMA (090)

BHAWANA MALLIK (154)

1

THE CHOCOLATE HOUSE

SWEETY AGARWAL (158)

Acknowledgement

At the outset, we would like to thank our faculty guide, Prof. Arvind

Tripathy for his invaluable suggestions and guidance which provided a

meaningful direction to this dissertation.

Finally, a heartfelt thank you to all our friends who appreciated

criticized and supported our work and helped us to remain motivated

for the completion of our dissertation.

Group -6

2

Index

Situation Analysis………………………………………………………………………………….. 4

1) Market Analysis………………………………………………………………………………… 4

a) Confectionery Industry…………………………………………………………………….. 4

2) Nature of Demand…………………………………………………………………………….. 9

3) Nature of Competition………………………………………………………………….….10

Cadbury India……………………………………………………………………………………....10

Nestle, India…………………………………………………………………………………………11

4) Financial Resources of the Firm………………………………………………………....14

5) Segmentation and Targeting……………………………………………………………...15

Positioning…………………………………………………………………………………….......... 19

6) Branding…………………………………………………………………………………….….. 24

7) Budgeting, Media Planning & Campaign Roll out………………………..…….. 26

References

Appendix

3

SITUATIONAL ANALYSIS

Market Analysis:

a) Confectionery Industry

The confectionery industry in India is approximately divided into:

Chocolates

Hard-boiled candies

Éclairs & toffees

Chewing gums

Lollipops

Bubble gum

Mints and lozenges

The total confectionery market is valued at Rupees 23 billion with a volume turnover of about

145000 tonnes per annum. The category is largely consumed in urban areas with a 70% skew to

urban markets and a 30% to rural markets.

Confectionary Industry

47.50%

20%

18%

1.50%13%

Chocolates

Hard-boiled candies

Eclairs & toffees

Chewing gums & Lollipops

Bubble gum &Mints andlozenges

4

Hard boiled candy accounts for 20%, Éclairs and Toffees accounts for 18%, Gums and Mints

and lozenges are at par and account for 13%. Digestive Candies and Lollipops account for 1.5%

share respectively. And the rest is chocolate market with 47.5% share.

Overall industry growth is estimated at 2.5 % in the chocolates segment and sugar confectionery

segment has declined by 3%.

Cadbury with Dairy Milk, Perk, Gems, 5 Star, Celebrations, Bytes, Dairy Milk Eclairs, Eclairs

Crunch, Mr. Pops and Halls brands is a key player in the chocolate, eclairs, lollipops, and mints

segments.

[2009 data from Cadbury India]

Organized market for sugar confectionary/gums is estimated to be 183216 tons in volume and

around 19.2 bn in value. The confectionary market is highly fragmented with several players

with strong regional presence. Leading players are Cadbury India, Nestle, Nutrine, Parry's

Confectionary, Parle, Ravalgon, Candico etc.

b) SUGAR CONFECTIONERY

Market Statistics - Sugar

Market Size (Volume) 1,63,000 tpa

Growth rate (last 3 years) 15% p.a.

Share of unorganized sector 1,00,000 tpa

Growing market share

Optimum utilisation of distribution network and reach

Introduce technologically differentiated value added sugar products

Focus on quality and packaging

Regular introduction of variants.

5

c) Chocolate Market

The chocolate market in India is estimated to be around 30800 tonnes. It is dominated by 2 major

players, Cadbury India Ltd and Nestle India Ltd, which together account for about 90% of the

total chocolate market. Cadbury India is the market leader with 65- 70% share in chocolates, but

Nestle is also growing faster. ITC and HLL are also operating in the confectionery segment.

Parle is trying to revive popular Poppins melody. It plans to give the brand a new packaging and

a makeover for Mango Bite. It is also concentrating on newer brands such as Smoothies (lacto),

Chox (chocobar) and Cafechino (coffee toffee).

Chocolate Market

Cadbury

Nestle

Other'sCadbury

Nestle

Other's

d) Imported Chocolate Brands in IndiaImported chocolates have gained momentum since the lifting of quota restrictions. Toblerone,

Ferrero, Arcor Rocher and Raffaello are some of the imported chocolate brands that have begun

to gain prominence in the Indian market that is largely dominated by Cadbury’s. Imports of

confectionery are mainly concentrated in high-value premium products. Many global premium

chocolate and candy producers are looking to the Indian market as its demand growth is strong

and per-capita consumption is relatively low. Present tariff rates encourage global players to

establish local subsidiaries. Lindt chocolate bars entered the market in February 1999 and cost

around Rs.120. An imported Snickers bar is around Rs60. Locally produced chocolates and

sweets tend to cost between Rs.5 and Rs.35. Even though quantitative restrictions on imports

6

were removed in 2001, India’s tariff structure makes it difficult for imported confectionery to

compete against locally produced products. The best prospects for imported brands therefore

tend to be high-value chocolates and sweets that target affluent consumers, as well as the gift

segment of the market. This growing class of elite consumers is aware of quality differences and

is ready to pay premium prices for world standards.

e) Characteristics of Market

Products and Prices

The imported brands owing to their prices tend to be more up market focused products. The

Swiss major Lindt offers a range of flavors like strawberry, raspberry, pistache, orange, cherry,

almond, caramel and plain milk (rs 130 for a 100 gm bar). German brand diet (costing rs 130 for

100 gm) also comes in various flavours like strawberry, nuts, mint etc. Tudor gold, a malaysian

brand, is available in flavours like orange cream, cashewnuts, whole almonds, fruit and nut, and

luxury chocolate (rs 76 for 100 gm). Liquor chocolates is another popular segment, but one

where there is no domestic brand. These chocolates are very popular with people as gifts.

Goldkenn and Walter Heindl are the only two brands of liquor chocolates in the market.

Goldkenn liqueur chocos come in flavours like cognac, cointreau, glenfiddich single malt

whiskey and russian vodka, costing rs 199 for a 100 gm bar

New Initiatives: Players like Cadbury and Nestlé have also introduced chocolates in smaller

packs, costing less than the regular packs to have larger penetration in the market

New product launches including— a brown and white chocolate combination ‘Dairy Milk Two-

in-One’ , ‘Bytes’ choclate wafer snacks by Cadbury India are driving growth.

7

Channel: Standard grocers are the leading distribution channel, with one third of the Indian

confectionery market, by value. Traditional grocers are the only other channel to take a double-

digit share. The remainder of the market shows a high degree of fragmentation.

Norms: Low margins, high volumes, price sensitivity and high advertising expenses characterize

the Chocolate industry.

Associated Problems: The perishable nature of the product and the fact that India lacks a cold

chain distribution network are among the major problems that inhibit market expansion. The

chocolate companies are facing problems due to scarcity of milk and rising prices. The private

dairies have raised the prices including the prices of Skimmed Milk Powder (SMP), the essential

ingredient for manufacturing milk chocolates and ice cream mixes in addition to biscuits and

confectionery products. [FICCI ‘FOOD AND BEVERAGES SURVEY’]

[http://66.102.9.104/search?q=cache:W1XeWcyRouQJ:www.ficci.com/surveys/

food1.pdf+cost+structure+of+cadbury+india+limited&hl=en&ct=clnk&cd=400]

2) Cost Structure of the industry

The average costs for a company operating in this industry as a percentage of total revenue or the Profit Margin

Profit Margin for Nestle is 87.4%

Profit Margin for Cadbury 93%

Average cost for the companies in this Industry is 90.2 % as these two are occupying the major

chunk of Market (90%). Though the margins are low but this industry majorly focuses on the

volumes.

Major chunk of the cost is distribution cost because of the requirement of dedicated cold

channels. And also to convince the retailers to share their refrigeration space

3) Environmental Climate

8

Consumer - Growth Opportunities

Impulse snacking is an Indian habit.

Attitude and disposable income changes are favorable to impulse foods.

Large youth population, 47% of urban India is growing dominant chocolate consuming

segment.

Child and gifting segments expected to grow at faster rate.

Current low penetration of Chocolates 22% adults in urban India.

Trade Liberalization and the Demand for Imports

In early 2001, quantitative restrictions on imported confectionery were removed in the Federal

government’s annual Union Budget. While the removal of quantitative restrictions was necessary

to bring India in line with international standards, the Indian government introduced

countervailing duties at the same time. Under pressure from domestic manufacturers, the Indian

government deemed these duties to be necessary to match manufacturing taxes that the local

manufacturers have to pay.

4) Nature of Demand

It is impulsive in nature.

Chocolate confectionery is sold at premium in India compared to other branded impulse

products.

Branded Impulse Market includes Chocolates, Biscuits, Ice Creams, Salted Snacks, and Soft

Drinks

There are over 1.5 million retail outlets for FMCG in India. Over two-third of these stock

branded impulse products, but fewer than 25% sell chocolate.

Demand is highly price sensitive, similar products are normally priced in a very narrow

price band.

9

5) Extent of Demand

The chocolate market in India is estimated to be around 30800 tonnes. And it is growing

at 7-8% per annum.

And also adult segments are targeted by major players, so demand is expected to grow

further.

Current chocolate value share of total impulse category is 6.1% (CIL 4.4%). Though this

is relatively small, changing tastes and lifestyles of consumer offer tremendous scope for

growth.

6) Nature of Competition

Cadbury India , Advertising Strategy

Chocolates have usually been viewed as something meant only for children. Perhaps realizing

that children would be attracted to any chocolate, irrespective of the brand, CIL targeted adults

with their advertising since the early 1990s. Most, if not all, of Cadbury’s advertisements in India

feature people over 18 years of age.

The message that CIL seems to be attempting to put across is this: “In every adult, there is a

child - let that child express itself, give in to temptation, and satisfy his or her desire to sink teeth

into a smooth, creamy, delicious chocolate”.

Message Execution

Cadbury’s multi-award winning campaign - ‘The Real Taste of Life’ - launched in the 90’s

attempts to capture the child like spontaneity in every adult. From the old man offering his wife a

Dairy Milk chocolate to the dancing girl in a crowded stadium, all reflect the impulsiveness and

the spontaneity of the child in the adult.

Cadbury’s Perk, the light snack, addresses the hungry child in every adult, as exemplified by the

bride who nibbles at a Perk under her ‘pallu’. Cadbury’s Dairy Treat conveys its message

10

through the mother who refuses chocolates and other treats to her son, till Dairy Treat comes

along and quickly changes her opinion about chocolates.

Catchy lines such as ‘The Real Taste of Life’, ‘Khane Walo Ko Khane Ka Bahana Chahiye’, or

‘Reach for the Stars’, are also used extensively, and to good effect in Cadbury’s advertisements.

Focus areas for growth

Impulse snacking

Child connectivity

Gifting

New channels & Institutional sales

Further improve quality of products.

Strategy for Growing market share

Optimum utilization of distribution network and reach

Introduce technologically differentiated value added sugar products

Focus on quality and packaging

Regular introduction of variants.

Nestle India , Advertising Strategy

Nestlé India is a subsidiary of  Nestlé S.A. of Switzerland. The company has six factories and a

large number of co-packers in India. The Company's principal activities are to manufacture and

distribute food products. The food products offered by the company include milk and nutrition,

soluble beverage powder, coffee blends, tea, cream, chocolate, cereals and cooking aids. It

entered the chocolate business in India in 1990 by introducing Nestle premium chocolate.

Chocolate products accounted for more than 20 per cent of the company’s gross revenues in

2006. Major brands in its chocolate segment are: NESTLÉ KIT KAT, NESTLÉ KIT KAT LITE,

NESTLÉ MUNCH, NESTLÉ MUNCH POP CHOC, NESTLÉ MILKYBAR, NESTLÉ

MILKYBAR CHOO , NESTLÉ BAR-ONE , NESTLÉ Eclairs

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Nestle KIT Kat is one of the highest selling chocolate brands in the world. It sells over 12 billion

Nestle Kit Kat fingers per year. It comes in various flavors like Kit Kat chunky peanut butter,

dark chocolate, milk chocolate and chunky caramel etc.

Nestle Munch, priced at Rs 5 is already the largest selling SKU in the chocolate and wafers

category with sales in metros as well as smaller towns

Nestle Milky bar, bar one are some of the other brands under the Nestle chocolate category

Advertising Strategy

Nestle, often stresses the energy giving aspects of chocolate (for example, in advertising for

Nestle Charge), or on other attributes of the chocolate - taste in the case of Nestle Crunch, as a

light snack in the case of Nestle Bar One. Nestle specifically targets children in the advertising

for Milkybar, its white chocolate, again emphasizing its energy giving properties

The company has been employing over a hundred different agencies. It has retained a few

agencies – Mc Cann Ericsson, Lintas, Ogilvy & Mather, JWT, Publicis / FCB and Dentsu. The

company has dedicated teams from these advertising agencies. Mc Cann for instance has 10

people working only with Nestle

Nestle subsidiaries have encouraged their local agencies to tie up with the company’s

global agencies. The rationalization of worldwide communications efforts has helped Nestle

achieve efficiencies in the case of products such as coffee, ice creams and chocolates. While

Nestle has also made attempts to transfer advertising expertise across countries, there are obvious

limits which essentially mean that the same advertisement can be perceived differently in

different regions. Therefore, it has to consider these sensitivities.

7) Emerging Trends in Market

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.

12

While Cadbury is trying to sell indulgence to adults, Kit Kat is selling 'ritualistic' break to

teenagers/ young adults.

Also the trend is toward health consciousness & taking as low sugar as possible.

Our Product : “ The Chocolate house ”

Idea Generation:

The basic idea behind the product is to induce the chocolate culture. The prime focus here is to provide customers a one stop solution for all kind of products involving chocolates, ranging from consumable chocolates to the ones used as beauty products. The chocolate joint would deal with dark chocolates, syrups, drinks, cakes, fudge, smoothies etc. Along with this, the chocolate joint also has certain other exciting features, which definitely will make this a must visit for all chocolate lovers. Details of these are given below.

ATTRIBUTES:

The product primarily includes chocolate. It is available in all forms of candy, toffees and bars in dark, milky and chocó flavors.

The chocolate joint deals with

Boxed Chocolates

Molded Chocolates

Liquids & Syrups

Cakes, fudges & smoothies

Chocolate fountains & party decors

Chocolate Beauty Products

Chocolate Spas

8) In- House Skills vs. Those of Competitors

Generally, in a FMCG product, apart from production efficiencies, marketing and distribution

13

Our Product

Introduction Growth Maturity Decline

are some of the major skills that any firm would like to develop. Moreover, if we look at a

company like Cadbury, their major competency is in effective distribution network and this is

one of their main focus areas. Primarily in case of chocolates distribution is important and a

challenge as well, as it requires a complete cold channel.This is an area where we do not need to

worry much, just because we do not require a completely cold channel for distribution, hence the

number of options available to us are more. So, we can now focus on other areas and

competencies. One of our major skills is our high end R&D. For long term sustainability of our

brand in the market, we need to constantly come up with newer varieties of flavors based on the

consumer tastes and preferences. Innovation in product development will thus be a prime focus

area.

9) Financial Resources of the Firm

Our company is a MNC which is specialized in Chocolate making all over the world & is now

venturing into India with its new product ‘The Chocolate House’.

Company has good financials & also has a good credit record in other markets. And investment

will be done by the parent company.

10) Stage in PLC

14

Chocolate Industry

Segmentation and Targeting:

The target group can be reached through modern trade as our target group would prefer buying

from MT outlets rather than from trade outlets because as we have seen in the market analysis

that out of 2/3rd reach of impulse products only 25% stocks chocolates i.e. around 16.5% & these

will be majorly are big stores, super markets & big retail chains.

Between 1996-97 to 2000-01 the per capita income on an aggregate basis grew by a CAGR of

3.2 %. The spend on the foods and beverages have been increasing steadily:

per capita spend on FMCG

0

1000

2000

3000

4000

5000

6000

7000

8000

95 96 97 98 99 0 1 2 3

year

Rs.

\

Series1

Our target audiences are from age group 5 to 30 years. Children from age group 5 to 14 years

would not have the buying power but would use there pester power to purchase the product.

Some of the characteristics of our target group are:

Educated

Urbane

15

High disposable income

Frequently visit modern trade outlets to fulfill their day-to-day needs.

Analysis of the various markets where we can launch the product (Geographic

segmentation):

All India – Urban product penetration Zone wise

 2008-09 %age

All India Urban 44

North Zone 45

East Zone 65

West Zone 37

South Zone 40

East zone has highest penetration so we can at start the product test from this zone which mainly

consists of Kolkata, Patna, Jamshedpur , Bhubaneswar and based on the response take it to other

markets.

Urban product penetration SEC wise:

All India – Urban product penetration SEC wise

 2008-09 %age

16

A 66

B 54

C 46

D/E 33

Due to penetration of our product category being higher in A, B & C we would focus on these

two segments as we don’t need to create a demand there first the market is already there, we

need to tap into it.

FMCG havens: Sweet Markets as these have the necessary infrastructure in place.

Town/state 

Average monthly spending on

FMCG

Chandigarh 3418

Ahmedabad 2869

Delhi NCR Region 2596

Mumbai 2955

Chennai 2886

Pune 2804

Vadodara 2816

17

• Focus on Delhi, Kolkata, Mumbai, Chennai, Bangalore, Pune, Chandigarh as is clear

from the average monthly spending on FMCG.

• Focus on Hyderabad would make business sense due to:

• higher disposable income

• Faster growth in modern trade

Positioning:

The Unique Selling Proposition (USP) of ‘The Chocolate House’ is:

The tag line “ The ultimate world of fantasy “ clearly signifies the wide options available

to let oneself go for taste, flavor, luxury & indulgence. The basic aim is to fuel the chocolate

culture. The tag line interprets the one stop solution ; to cater the every chocolate need of

consumers.

Primarily in the current market scenario, there is no similar concept existing. We are

focusing on making the customer more excited about the entire chocolate consumption

experience, as well as giving him the wide range of option at one place. We are keeping the

ultimate consumer at the centre and keeping his requirements in mind, we develop products of

unique aura.

CREATIVE APPROACH:

The Chocolate House being a totally new concept that we are coming up with, the right choice

of the creative approach that we will be using is very crucial. Unless we make the message that

we want to convey to our consumers very clear, there are high chances that they will interpret

our product benefits and uses wrongly. This is the case with any new product launch. It is hard

for the consumers to accept and relate to the ad message right at the first go. So, the break up for

execution is as follows:

1) Why are we advertising??

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The chocolate industry in India has well established players like Cadbury’s, Nestle, Amul which

have been in the market. Moreover, Cadbury’s is the market leader and is a household name

among young and adults alike. All these situations mean that while an entry into the market may

not be tough but breaking through the clutter will be a relatively difficult task. Our product,

though innovative is still a new product for the consumers for whom chocolate still means

Cadbury’s to a large extent. Therefore, we are advertising to create awareness among the target

consumers. As the AIDA model suggests that for anything to result into an action, first

awareness has to be created which then leads to interest and if the taken further the interest leads

to desire. A strong desire then leads to action that is the ultimate consumption. Advertising will

help us create that awareness among the target group.

2) Who are we talking to and what do we know about them?

Our TG is of the age group 8 to 30 years wherein the age group from 8 to 14 years will not have

the buying power and they will use their pester power to get the product.

Our consumer is from age 8 to 30 while customer is from age 15 to 30

The characteristics of our TG:

Urbane

Value-for money customer

Educated

Sec A & B

Independent

Frequent mall visitors

Particular about the kind of product they purchase

3) What do we want them to think and do?

19

We want to create excitement among our TG. The USP of the product is its wide range of

availability at one joint. This is a new concept for the chocolate market. Therefore we want our

TG to be excited about the product. We want them to feel the magic of what else can be done

with chocolate. Moreover we want them to believe that the product’s quality is better than the

current brands and their taste buds are also being satisfied as per their need. The other exclusive

services related to chocolates, who are otherwise available rarely and at premium prices are

available at a one stop destination of experience. Satisfied customers bring in more consumers so

we want our consumers to advertise the product by word of mouth. Therefore, apart from being

indulge with the wide product experience we expect our customers to talk about the product and

build the brand equity.

4) What is the core brand insight??

As the single big idea that we have thought of portraying to the consumer is to induce a

chocolate culture, that is he can have the chocolate in whichever flavor he wants & in whatever

form, shape he wants (from the given shapes), party decors also the beauty products & services

available at a single joint for a completely different chocolate experience.

5) What should the advertisement say?

The Ad Message:

The ad message should make the USP of our product very clear, which is -

‘The Ultimate world of fantasy’

Keeping in mind our USP, the Ad message can be broken down into three subcomponents –

1. Unique product experience

2. Flexibility of choice

3. Customization options

At this point of time we are focusing on making the product attributes and benefits very clear.

Though it is a fact that our product costs will be much less as compared to other complementary

20

products available in the market, it doesn’t make sense for us to project ours as a low cost

product. This probably is something that we want the consumers to realize themselves, which

will play a role in creating consumer delight.

6) What should be the tone and manner of advertisement?

The FCB Grid (Vaughn, 1980, 1986) uses involvement (high-low) and think/feel as the two

dimensions for classifying product categories. This classification suggests that purchase

decisions are different when thinking is mostly involved and others are dominantly involved with

feeling. In addition, different situations also exist, resulting in decision-making processes which

require either more or less involvement. The quadrants summarize four substantially major goals

for advertising strategy: "to be informative, affective, habit forming or to promote self-

satisfaction".

As seen clearly from the FCB grid, we clearly see that our product lies in the Feel-Low

involvement quadrant. This area is for those products that can be likened with "life’s little

pleasures"; those that can satisfy personal tastes. Products such as cigarettes, liquor, candy,

21

movies or the decision to patronize a fast-food restaurant all appertain to this quadrant. A DO-

FEEL-LEARN hierarchy effect is the consumer process for this area, and product experience is a

necessary part of the communication process.

SENDING THE MESSAGE ACROSS:

The target segments for our product are consumers in the age range of 8-30, belonging to Upper

middle class. We want to make our product a permanent part of the shopping basket every time a

family goes out on a weekend, shopping for general household items. For all this it is very

important to create some kind of emotional bonding in the minds of the consumers with regard to

our product, and make them realize its necessity. For these reasons, the kind of advertising that

we will be going for will be a mix of Emotional and Experiential components, with explicit and

close ended message delivery.

8) What executional considerations are there??

We will be launching the product in a phased manner

Starting with North as the market for chocolate is biggest there, so we will not require to

create awareness (about the category) among people, the disposable income in this area

is also high so that the consumers can buy this product as it is not a necessity product.

Since we are not launching the product nationally at one go we will not be going on

national TV, rather we would focus on regional TV channels along with various print

campaigns and outdoor activities.

We would be engaging the services of Mindshare who will be able to provide the media

habits of the people along with media slots where we can put our advertisements.

Since we will be conducting outdoor activities we will be hiring Wizcraft for managing

the events for publicity of our product.

The benefits of the product from the distributors point of view is that our product does

not need refrigeration while storing or while transporting unlike other products in this

category. This would eventually lead to low cost to the distributor and also to the retailer,

so they will be happier to store our product.

22

Branding

Brand Name: THE CHOCOLATE

HOUSE The message we want to send across through

this brand name is the concept of chocolate and house for wide options availability.

Brand association:

Owned word: We will be using “The Chocolate House” as the word we want our

brand to associate with, as it conveys the whole meaning of our product: an ultimate

destination where all kinds of chocolates can experienced.

Slogans: The ultimate world of fantasy..

It signifies that, our chocolate joint is the ultimate destination for the chocolate lovers

where they can relish all kinds of chocolate in different forms & flavors as well as beauty

product & services.

Symbol & logo:

LOGO-The bar code style signifies the different textures of the chocolate

and its wide range of availability with the mascot at side.

23

THE CHOCOLATE HOUSE

Mascot: The bunny with a basket full of chocolates in hand shows the happy, content and

ready to offer image to the customers

Brand Personality:

The consumers will be able to build up a better bonding with our brand because our brand will

offer customer various flavors, shapes and customization in one pack. Flexibility to customer is

that he can have the chocolate in whichever flavor he wants & in whatever shape he wants (from

the given shapes) & also different kinds of other services available for a completely different

chocolate experience.

The different target groups for our product will also be able to associate with our product as our

brand will depict the following personality traits for each of our target segments -

1) Children - Adventurous, Joyous – Our brand would provide them with the fun of having the

chocolate in shapes of various toys like animals, planes etc. along with the sensory feeling of

having a chocolate. They can make the chocolates themselves so adventure part also comes

in play.

2) Family- Since we are trying to target age group from 8 to 30 years which would include

young families with small children, some of the characteristics of our TG family are:

Urbane, educated family

Value-for-money

Enjoy shopping at malls

See shopping as a family activity

Sec A & B

More Mall oriented weekend shopping

3) Women: Beauty solutions with the goodness of chocolate in form of beauty therapies by

consultants and rejuvenating sap treatments, hence our target group also includes beauty and

class conscious women of age group 20-30.

24

Budgeting, Media Planning and Campaign Roll Out

Budgeting

CHOCLATE HOUSE is a new product based and service based in an already highly competitive

market. It competes with not just other chocolates like Cadbury and Nestlé’s but also with loose

chocolates sold in malls also with all kinds of beauty parlors and spa centers and also with the

party decorators etc. It is being positioned as a service which can be consumed at any time after

making and making the ambience.

Chocolates being a low involvement product it needs to have high awareness and high reach. It

should be easily available and should have prominent display. The logo designed by us has

bright colors and thus will get us eyeballs. Thus the main objective of the advertising campaign

would be to increase awareness and salience of the brand.

The overall advertising expenditure is Rs. 100 Crs.

Methodology Followed: As we are a new brand, we have the special task of generating

awareness from a zero level. It is necessary to make a heavy investment in advertising during the

first year or two of the brand’s life.

It’s a general trend that

Advertising up to 6 months in the first year equal twice the gross profit

Advertising in the later 3 months of the year equal half the gross profit

Advertising in the end of the year equal some % of the the gross profit

Now how we have calculated our expected gross profit

25

We will sell one unit of our product at around 70 Rs. & our cost will be around 40 Rs plus 10 Rs

for distributors & other expenses, which will give us a gross profit of about 20 Rs per unit. Also

the services which we providing will not charge any service tax as well any kind of extra cost.

The chocolate SPA will cost according to hours 500 for 1 Hr. Also the part decoration of

chocolate will involve the cost according to the shifts. The day is divided into morning, noon and

evening shifts. The evening shift charges the highest cost and the morning lowest. The evening

shift costs Rs. 5000 for decoration, Afternoon it costs Rs. 3000 and in morning it charges 2500.

The beauty parlor charges cost according to the therapy its gives to the customer.

SEC A&B population is about 10 crores. In this also the people belonging to our target age group

will be about 35% (8-30yrs), i.e. 3.5 crores. About 20 % of this population we’ll be able to reach

by our campaigns i..e. 70 lakhs, out of which finally convinced consumers will be about 10% i.e.

who will be buying the products i.e. 7 lakh units. We are expecting a customer to buy at least 3

units per year but some consumers will also may not go for a repeat purchase, i.e. we’ll may not

be able to sell 21 lakh units.

Allocation: First of all we’ll be hiring a creative agency for our ad creation & other creative

works. We have set aside a budget of 45.097 crores for it. While for the media we have kept a

budget of 44.447 crores which will be divided amongst the various media vehicles.

  TV Radio Print OutDoor Hoarding Total

COST 404476800 70000000 164399200 197680000 88900000 925456000

We still have about 7.4544 Crores Rs. Left which we can use for further promotions or in

contingencies as will for the future reserve.

Frequency: Various studies & analyses has found that for a frequently packaged purchase good

(as we also want our product to be like that) a frequency of four or more exposures per four week

is optimal as after that diminishing returns will set in. We have decided on 48 slots in the each

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month in the first 3 months, on Television in various channels as per the market considerations &

our target segments. (Given in detail in later in the reports)

Media Planning

Media Class Used: We are using four mediums for our campaign which are TV, Radio, Print

(Magazine & NewsPaper), Outdoor promotional activities

We are using these media classes to have a multiplier effect like when radio is used along with

TV, there is a dramatic increase in frequency of exposures, either in the same period as the TV

campaign or later to extend the campaign over time; radio can be used for regional or local

exposure booster; radio can be used to reach light viewers; radio extends TV messages to key

times of day when TV audiences are lower or when product relevance is higher (such as

afternoon meal time for Food marketer).

Also in communication, given that Radio is perceived as personal medium, radio can bring

brands closer and speak to the consumer at their level (this is important for brands which do not

wish to be seen as distant like CHOCLATE HOUSE); radio has a culture of response where

listeners frequently interact with their station which they see as accessible

In detail radio allows activity to be geographically varied; radio can allow a fast turnaround for

new initiatives; low production costs mean multiple copy messages can be varied round the core

TV communication. And similarly combination of all these medias will give us a wider reach &

more exposure than using only one or two media classes.

TV ADVERTISEMENTS

Category Practice: Indian chocolate market is almost totally depended on purchases of kids.

But from our pilot study it found that not only kids te womens are also very much tempted about

chocolates.

27

While Cadbury is trying to sell indulgence to adults, Nestle is selling 'ritualistic' break to

teenagers/ young adults. This is reflected in the changing advertising patterns across different

channels. Out of 100 channels that are being monitored, eight channels account for 40 per cent of

chocolate advertising. This pack of eight is headed by Cartoon Network, which is obvious, since

the main buyers of this product category are children.

But heavy advertising on channels like MTV, MAX, Star Plus, Zee, Zee Cinema, Discovery and

Channel [V] proves the changing profile of the potential consumer for the advertisers, in this

category, from children to teenagers/young adults as well as adults.

Moving on to the individual advertisers, we see that almost all the advertisers drop advertising

during winters as well as in the months of Apr-Jun. Advertising in the festive season sees

Cadbury shadowing Nestle across all months in 2009, but November -December 2009 has a

different story to tell. Owing to the adverse coverage for Cadbury's in October, advertising for

Cadbury's products dropped in November -December, which in turn helped Nestle in being the

28

top advertiser for the chocolates category in these months. Other players in the market- Campco

and GCMMF are not a lot into brand promotion through advertising.

Taking a look at the growth of chocolates category across the last four years, the ad spends for

this category usually shows a categorical rise in the festive season. From August to November

2009, they show a steep decline after September. This can be attributed to the adverse coverage

in media received by the Cadbury chocolate bars. In fact, 2009 records the lowest spends for the

month of November across 2006-2009.

Our Media Vehicles for TV: We have decided to go with media combination of majorly

Star, Zee TV & Sony because as per the latest TRP ratings shown below they have the highest

reach.

Also our target segment is slightly different from what industry is focusing on so we are not

advertising on other channels, as they are doing.

And also as our product is a family product so we have targeted those kinds of programs which

are watched generally by the family. The TRP ratings for various programs we have choosen are

shown along with the programs. (Please Refer to Appendix A for a full list of TRP ratings)

We have Choosen Dance Indian Dance because it is having the highest TRP in the prime slot i.e.

on Friday-Saturday 9:30 o’ clock, while we have choosen two other programs based on the TRP

ratings in the early prime slots on Zee Sony because of their lower cast but also a good TRP.

We have choose POGO because it is very famous among kids of 7-15 years old & we have

choosen Takishi Castle as the program in the prime slot of POGO i.e. in the afternoon, & it is an

adventurous program so people get involved into it & get a feeling of excitement & we want

them to feel similar excitement while making different designs of our chocolate, so it’s a good

match.

29

For housewifes we have choosen 2 programs in the afternoon slot on Star Plus which is topping

the charts in the Star Bouquet, which is having the highest TRP’s as we have seen in the graph

above & also cost is a major reason as slots are available at a low price.

We have selected SabTv, MTV and Colors because now it has got many viewers.

Prog Cat Rate Cat Duration Spots Rates

Diamond SPT 10 sec 1 150000

CRÈME SPT 10 sec 1 30000

Afternoon RODP SPT 10 sec 1 1700

Garnet SPT 10 sec 1 15000

Prime POGO SPT 10 sec 1 7600

Cost Structure for TV Ads

Prog CatRate Cat Duration Spots Rates

Diamond SPT 10 sec 1 150000

CRÈME SPT 10 sec 1 30000

AfternoonRODP SPT 10 sec 1 1700

Garnet SPT 10 sec 1 15000

Prime POGO SPT 10 sec 1 7600

30

    First 3 months  

Prog Cat Ad of Days a week Frequency Monthly

Diamond 20 sec 1 1 8

CRÈME 20 sec 1 2 8

Afternoon RODP 20 sec 3 2 24

Garnet 20 sec 1 2 8

Prime POGO 20 sec 1 2 8

  Next 9 months  

Prog Cat Ad of Days a week Frequency Monthly

Diamond 10 sec 1 1 4

CRÈME 10 sec 1 1 4

Afternoon RODP 10 sec 2 2 16

Garnet 10 sec 1 1 4

Prime POGO 10 sec 1 1 4

Prog Cat first month 2nd month 3rd month4th to 12th month(per month) Total Cost

Diamond 8400000.00 8400000 8400000 42000000 67200000

Garnet 840000.00 840000 840000 4200000 6720000

Prime POGO 425600.00 425600 425600 2128000 3404800

Afternoon RODP 571200.00 571200 571200 1904000 3617600

Crème 3360000.00 3360000 3360000 16800000 26880000

Total 13596800.00 13596800 13596800 67032000 107822400

In the first 3 months, we are showing ads of 20 sec, on all the channels for creating awareness &

interest for our product & for the remaining of the year we’ll show a modified version of 10 sec.

As we can see the budget for the first 3 months is 13596800 which is about 41% of yearly spend

on TV.

PRINT ADVERTISEMENT

Media Vehicles for Print: Activities under print advertisement shall cover the newspapers,

magazines especially the women and culinary magazines. The target is the families in SEC A

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and B and we intend to cover the women in this category along with the children. The magazines

are chosen on the basis of their circulation in the northern region and also the positioning of

these magazines since magazines like Meri Saheli, Grihshobha and Grihlaxmi. These magazines

have a very wide circulation and are among the most popular magazines throughout India. These

magazines have a culinary section wherein the advertisements will be aired.

Frequency of advertisement: In the initial phase the advertisements shall be on a monthly basis

in case of magazines. All the magazines are monthly publications. The initial introduction will be

in North and mainly in Delhi. After two months the publications shall cover other belts such as

Maharashtra and other metros. The reason for choosing these cities is the very reason that these

markets are sweet markets and it will be easier to gain the attention of SEC A and SEC B

families. For the newspaper the advertisement shall be weekly with the newspapare being Times

Of India because of its sheer reach among the intended customers. Moreover the advertisement

shall be for 20 square cm coloured advertisements and on the third page of the newspaper and in

Delhi Times as well.

The initial phase is critical to the media rollout and the product success. Therefore Delhi is a

critical market for the product. The circulation of various newspapers and magazines was

considered for Delhi initially. Moreover as far as the all India plan is concerned more focus is on

magazines since they tend to stay on the dining tables for a longer time and hence will have more

Top of mind awareness factor associated with them

Publication Delhi Circulation

Delhi Times 5,53430

TIMES of India 7,51,447

Navbharat Times 333472

Hindustan Times 206500

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Punjab Kesari 197508

Merisaheli 79346

Grihshobha 70028

Gihalaxmi 67739

Cost Structure:

Publication Rate per SpaceNo. of times

No. of editions Total Cost Location

Delhi Times 900 sqcm 20 28 33 16632000 North

TOI 2190sqcm( cover page) 20 28 33 40471200 North

Merisaheli 300000 page   20 12 3600000 DelhiGrihshobha 522000 page   20 12 50112000 Delhi  57000 page   20 10 570000 Maharashtra  38000 page   28 10 380000 KolkataGrihlaxmi 55000 page   28 12 18480000 Delhi  140000     28 10 39200000 12 metro split            169445200  

RADIO ADVERTISEMENTS

Radio operates within a time in which people generally are free and not preoccupied with

something serious- typically traveling time. In this kind of situation, this is very beneficial for

our product, as an ad on radio while someone is going out for shopping, or when someone is on

the way back to home from office, and then the ad can remind him of the product, and can

generate a sudden desire to get one on the way.

What radio add:

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In planning Radio adds real frequency, in the sense that additional exposures to the advertising

are played in full rather than having the listener look away or ignore; radio offers far tighter

targeting which means reducing wastage; radio also offers tighter timing - within time of day,

day of week or even week of month

In communication Radio allows more information to be conveyed, which is useful for

explaining or persuading; radio allows multiple copy (which can also be used regionally or

demographically); radio brings brands closer, as listeners identify with their radio station and see

it as aimed at people like them; radio is better able to communicate the tone or character of a

brand

In detail Radio offers speed of production compared with the lengthy process of poster print

deadlines; it also allows localized copy variation relating to a national poster execution

Key Findings from Madison Media Research –

Radio has a reach of 56% and there is a distinct skew towards males.

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Radio Mirchi is the most popular station and is tuned by people in SEC A and B.

People listen to FM at home (70%), while driving (32%), at public places (9%) and at the

office (7%).

Almost 51% of the people listen to FM for an average time of one hour and another 39%

listen to FM for a longer period of 1-3 hours.

Sunday listenership is dramatically low with only 10% of the people tuning in to FM vs.

weekdays where the number of tune-ins is as high as 94%.

Majority of the people listen to Hindi film songs (63%), followed by Hindi pop (40%),

remixes (37%) and English pop (33%).

Our Media Vehicles for Radio:

TIMEBANDS:

Our target audiences are sec A and sec B people. Students are not our prime target. The

following research data shows the key time bands for different category of people. From this

data, the time bands that we will be focusing on will include:

1. 0600-1000, this will cover most of our target segment.

2. 1000-1400, which will target our segment, which is housewives.

Radio listening being skewed more towards the males, it is very important for us to take

advantage of the time band 1000-1400, where the prime listeners are housewives.

Also that, it does not make sense to put ads on radio after 2200 pm. It makes more sense to put as

at the beginning of the day, by which there are far more chances of the desire to last for a longer

time, and they finally end up buying our product.

35

The channel mix:

In most of the metros, there are primarily 3-4 very popular radio channels. The data for split of

listeners is given below. As per the data, we will go for a 2 channel selection, which will cover a

large part of our target segment. The two channels that we are going to put our ads on, and the

number of spots per day on each is:

CHANNEL SPOTS/DAY

Radio Mirchi 6

Radio City 3

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COSTING of radio:

Research shows that there is very poor radio acceptance on Sundays. Hence, our plan is to

advertise on radio on the remaining six days of the week.

The spots selected in Radio city FM are basically 10 seconds spots, which will show a detailed

product ad. Also, we will go for 6 one seconds spot in Radio Mirchi, targeting family (F) and

Family Drive (FD) time categories, which will primarily do the job of reminding the consumers

about our product, which thus can convert into a purchase desire. The costing information for the

two channels that we have selected is shown below.

Also the programs that are aired during our selected time band primarily include music

programs, and thus, our spots will be spread across different programs mainly in programs

related to film songs, which has the largest percentage of listeners (63%), there by increasing the

chances of visibility across our target segment.

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RADIO CITY FM DELHI

time category

rate category

duration

spots rate

SPOTS SELECTED

COST/DAY

COST/WEEK(6 DAYS)

TB-1(0700-2200) SPT 10 1

1700 3 5100 30600

RADIO MIRCHI FM DELHI

time category

rate category

duration

spots rate

SPOTS SELECTED

COST/DAY

COST/WEEK(6 DAYS)

F SPT 1 1 815 3 2445 14670

FD SPT 1 1137

5 3 4125 24750

For the first two months, our focus will be primarily the northern region, and we will go with this

plan. The total spending on Radio for the first two months thus will be around 6 lakhs.

Next, after this we are planning to go national, and then we will shift our focus to other regions

as well. We will eye other metros as well on similar lines, but with reduced expenses, as once the

product has created awareness in the market with the help of advertising in other media, the job

of radio will just be to create ticks in the mind of consumer on spot, and thus remind them of a

buy option. Thus, the ad on radio later will be focused towards selecting one second spots in the

time category called family(F) and family drive(FD).

This primarily is the plan with respect to advertising using radio as the media, and the annual

budget for radio is 8.33% percent our total ad spend, which will amount to a sum of 25 Lakhs

OUTDOOR ADVERTISING:

Extempore: Impromptu gifts given to people random selected and asked to speak about

chocolate experience for a minute outside the mall.

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Sweetest family competition: Competition among families with entries invited from our TG and

then the short listed entries can be made to compete outside a mall on a weekday wherein each

has to prove how they are sweeter than others.

Likes and Dislikes: Get to know your family even better especially with respect to their likings

in chocolates. Ask everyone to write down 5 of their likes and 5 of their dislikes on index cards.

(Help the younger ones by writing for them.) Read the cards one at a time and have everyone try

to guess which relative the information belongs to. Give points accordingly and decide the

winner.

Crazy Olympics: Have a Crazy Olympics party and let the kids play silly games, such as the

Backwards Crab Walk, Blind (folded) Leapfrog, and Impossible Obstacle Course etc. Add a few

ridiculous relay races for extra fun (pass the eggs, carry cotton on a spoon, one-legged race, and

so on). The kids can also play Silly Sports. This will give them an

opportunity to enjoy and be themselves and will drive innovation. This will benefit our product

as our slogan is “Feel free to Innovate” and towards the end we can provide the product and its

variations and they can experiment and innovate while experiencing it.

Dress up Contest: Divide people into teams and choose one person to be the dress-up "dummy."

Use old clothes, scarves, glasses, shoes, and anything else that you can place on another person's

body to dress up your "dummy." Make your "dummy" as funny and creative as possible. The

funniest "dummy" is the winner.

Pool Party: Organize a pool party for families where kids can have fun and prepare their own

kinds of chocolates and experience the fun while innovating. The families can be invited using

mailer list option using services of direct marketing outfits like Lintas. Since, we are rolling out

in north first we will have the pool party in New Delhi inviting families from all over north.

We shall be hiring Wizcraft for conducting these activities inside and outside the malls on the

weekends in cities like NCR, Lucknow, Chandigarh, Ludhiana, Kanpur in the North. We shall be

paying them Rs. 90 lakhs for hiring their services wherein it would include their annual fees and

the cost of conducting the activities.

Names of some of the malls which could be targeted are:

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DT mall in Gurgaon,

Ansal Plaza in New Delhi,

Sahara Mall in Lucknow,

Fun Republic in Chandigarh etc.

Costing for the same: (illustrated for North) on the next page

 ActivitiesPer Head No.of People per mall

Total Cost

       

Extempore 8000 50 400000

Dress up Contest 6000 32 192000

Sweetest family competition 6000 24 144000

Likes and Dislikes 6000 24 144000

Crazy Olympics 6000 100 600000

Pool Party 6000 200 1200000

       

Total   430 2680000

Total Cost (Mall Cost + ActivityCost)  

NCR 18704000

Ludhiana 8344000

Lucknow 8344000

Kanpur 8344000

Chandigarh 8344000

Total Cost 52080000

Total costing for other regions (including North):

North 52080000

South 70000000

East 28000000

West 47600000

Total 197680000

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Thus, our total cost for conducting these activities in 27 cities (including Metros) covering 45

malls involving 2000 people, reaching 1800000 people. As around 50000 people visit mall every

weekend each on a Saturday and a Sunday.

Our activities will be conducted during day time when around 20000 people will at least visit the

mall keeping the estimates as conservative. Thus, keeping the above in mind we will be able to

reach 1800000 people in 27 cities. An additional costing of Rs. 10000 for making banners when

the activities are being conducted which can be reused. Thus, total cost would be 7070000.

Total People involved 1720

Total Reach 1800000

Cost Per Person 3.922222222

Hoardings:

We shall be using hoardings outside the malls where are products will be available as our target

audience would be more malls goers rather than others. Also, they give repeated visibility of the

product. The hoardings are planned in 6 metros i.e. New Delhi, Mumbai, Hyderabad, Bangalore,

Chennai, Kolkata.

City LocationCost/month

no.of months

Total Cost/city

NCR DT mall, Gurgaon 2520000 12 30240000  Ansal's , South ex, New Delhi 1680000 12 20160000Mumbai In Orbit Mall, Malad 1820000 12 21840000  Infinity Mall, Andheri 1400000 12 16800000Bangalore

Sigma Mall on Cunningham Road 1540000 12 18480000

 Prestige Eva Mall off Brigade Road 1680000 12 20160000

Hyderabad Central Mall, Punjagutta 1120000 12 13440000Kolkata City Centre, Salt Lake 1400000 12 16800000  Forum, Elgin Road 1680000 12 20160000

ChennaiCity Centre on Radhakrishna Salai 1260000 12 15120000

Total Cost      

193200000

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As these locations are some of the prime high activity locations of the various cities they are

bound to attract a lot of people and the exposure of these would be very high and would be seen

by lot of people.

CAMPAIGN ROLL OUT

We shall be starting with North as North has highest share in chocolate market India thus,

awareness levels are high. This will give us an opportunity to test the markets and if required

tweak our marketing strategy in other places.

We shall be launching the product within a span of 2 months all over India going in the below

mentioned order (including the order for North)

North launch will happen in the following order

Starting with New Delhi (NCR)

Followed by Kanpur, Lucknow , Chandigarh and then Ludhiana

South with launch happening in

Bangalore followed by Hyderabad, Chennai,

Mini metros Nagpur, Coimbatore, Maduria, Kochi, Vizag

West with Launch happening in

Ahemdabad followed by Surat, Vadodara, Pune

Since we have divided India into four regions we are taking MP to be a part of West zone

Indore and Bhopal are the two cities which will be targeted.

East will have the launch last with focus on Bihar and West Bengal

Kolkata and Patna are the two places which will be focused.

Initially we plan to enter with very heavy advertising at a frequency of 48 per week on various

TV channels like Star, Zee, Sony , POGO for three months and then gradually reducing the

frequency to 30 per week Hindi Mass channels, which cut across all sections of the society and

are the most viewed, take the major chunk. These channels are watched mainly by women who

are the main decision-makers for this product category. As such, these channels give the brand a

42

wider and far greater exposure. Thus, instead of going for continuous advertising we shall go for

pulsing advertising with more focus on the initial periods.

Television is not the only medium which we plan to tap, we will be using print where our print

campaigns will appear in various newspapers like Times of India, Navbharat times, Hindustan

times and would also cover popular magazines like Grihashobha, Grihalaxmi etc. Besides, Print

and TV we are also going to go on radio as with trend of radio increasing and it becoming an

extremely strong medium for advertising, thus cannot be ignored.

To add to the visibility, we will be placing hoardings in 6 metros i.e. New Delhi, Mumbai,

Hyderabad, Bangalore, Chennai, Kolkata focusing on the malls at these places so that the

consumer sees the hoarding and the product is available inside the mall, thus, the TOMA created

by the hoarding is immediately converted to sales and it becomes easier for the consumer to

connect with the brand and the product. The duration of each hoarding will vary according to the

response of the TG.

Since, our product is centered on product experience we have come up with an innovative idea of

conducting outdoor activities outside the mall on weekends, arranging parties using the direct

mailer option to reach our specified TG and do all India competitions to involve more and more

people and create awareness about the brand.

We can also have a live telecast of these activities on various local channels which would

provide us further mileage.

Through this, we intent to provide an enchanting experience to our TG who can later talk about it

to their friends and other family members, thus, leading to word of mouth publicity.

Hence, we are exhaustively going all out to create brand awareness and exploring all the

platforms for reaching out to the audience.

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References:

FCB Grid (Vaughn, 1980, 1986)

LOWE Agency’s Insight Questions

Adex India

INTAM (http://www.indiantelevision.com)

http://www.exchange4media.com/e4m/Radio/allresearch.asp

Media Ware Database

Advertising & Promotion (Shah D’ Souza)

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APPENDIX-I

CHOCOLATE JOINT QUESTIONNAIRE

a) Do you eat chocolates?a) Yesb) No

b) How often you buy chocolate or products containing chocolate?a) 2-3 times a weekb) 6-7 times a weekc) More than 10 times a week

c) Do you use cosmetic products which includes goodness of chocolate?a) Yes b) No

d) Do you use dark chocolates or of foreign make?a) Yesb) No

e) Generally in what form do you use your chocolate products?a) Barsb) Toffee & candiesc) Syrup & liquidsd) Cream

f) Would you consider the idea of having a chocolate joint in you city, which would provide products of all kind involving chocolates?a) More likelyb) Likelyc) Less likelyd) Not much

g) What are the extra features you like, that should be there in the chocolate joint?

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h) Where do you often see the chocolate advertisements?

a) TVb) Magazinesc) Hoarding

i) Which media vehicle appeals you more? a) Audio b) Visual

Name: Sex: M F

Occupation: Age:

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