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.