Amul Chocholates

Only available on StudyMode
  • Download(s) : 232
  • Published : April 4, 2013
Open Document
Text Preview
Amul has a minuscule market share in the Indian Chocolate Market space. Cadbury and Nestle remain to be strong and Amul is being elbowed out by constantly growing foreign brands. Indian Chocolate Industry however continues to be robust with an expected CAGR of about 18-20 percent. As far as the position of Amul Chocolates amongst the various SBUs(STRATEGIC BUSINESS UNIT) of Amul Umbrella is concerned, Amul Chocolates once again fails to score. Amul chocolates contributed probably half a per cent to one per cent to Amul’s overall turnover (Rs 6,711 crores in 2008-09, Rs 5,255 crores in 2007-08). With a low relative market share in a high growth Chocolate Industry, Amul Chocolates needs to pull up its socks and look at innovating and repositioning to respond to the competitors’ dominance. Amul Chocolates could not change with the changing market scenario. From being the Market leaders in the 1970s when they were launched, they are now languishing at the bottom of the pyramid with a mere 5 percent market share in the lucrative Chocolate industry growing at about 18-20 percent annually. Amul Chocolates also face a threat from increasing penetration of foreign chocolate brands in the urban markers, and the growing awareness about these brands amongst the customer segments. Amul works with the principle of UMBRELLA BRANDING. With a wide range of products, many of which that are doing very well, it is most likely that Amul Chocolates is not being given the attention and the effort that it needs to recapture the position it once held in its glory days in the 70s.

From the primary and secondary data used in my project the main WEAKNESSES of Amul chocolates can be summarized as below:

Competiton from chocolate brand giants like Cadbury and Nestle Poor marketing strategy is one of the biggest reason why the demand for Amul chocolates is decreasing. Inadequate promotion had further led to the failure of Amul chocolates. Lack of Awareness in...
tracking img