Topics: Chocolate, Cadbury plc, Cadbury Dairy Milk Pages: 43 (9973 words) Published: August 14, 2008

Ask a kid ‘what’s the occasion to eat the chocolate’, and pat will come the reply, nothing but still I want to eat it.

Chocolates as a segment thrive on excitement and innovation. And this segment has huge scope in India for the following few reasons.

Indian’s love sweets.

§Younger generations of Indian’s are more comfortable with the idea of eating and sharing chocolate.

§Affluence, and spending power of Indian consumers is increasing day by day.

§Currently Indian markets offer huge potential as it has 2nd largest population base in the world.

§Fast expanding large retail format is an added advantage for the chocolate segment, which is expected to further boost their sale.

§For India chocolates is a new and happening concept, as against almost saturated chocolate market of west.

Presented below are few statistic’s about the various Impulse buying segment products’ and their market share.

§Snack Foods Market Size : Rs 4500 crore (ET 26/02/07)

(Branded Snack Food Market :Rs 1300 crore( ET 26/02/07))

§Soft Drinks Market Size : Rs 6000 crore (ET 21/02/07)

§FMCG Market : Rs 64000 crore ( ET 07/02/07)

§Chocolate Bar market size : Rs 350 crore

§Ice cream market size : Rs 1000 crore

§Carbonated Soft Drink Market size : Rs 5000 crore

Chocolate Market In India

Facts & Figures

üChocolate market is estimated to be around 1500 crores (Danielson) growing at 18-20% p.a.

üCadbury is the market leader with 72% market share in organized chocolate market.

üThe per capita consumption of chocolate in India is 300 gram compared with 1.9 kilograms in developed markets such as the United Kingdom.

üOver 70 per cent of the consumption takes place in the urban markets.

üMargins in the chocolate industry range between 10 -20 %, depending on the price point at which the product is placed.

üChocolate sales have risen by 15% in 2007 to reach 36, 000 tones according to one estimate.

üThe chocolate wafer market (Ultra Perk, Perk, Munch etc) is around 35 % of the total chocolate market and has been growing at around 13% annually.

üAs per Euromonitor study, Indian candy market is currently valued at around USED 664 million, with about 70%, in sugar confectionery and the remaining 30%, in chocolate confectionery.

üEntire Celebrations range market share is 6.5%.

üThe global chocolate market is worth $75 billion annually.

Major Companies Operative in this sector

§The chocolate market in India has only three big players, Cadbury, Nestle and Amul

§New brands such as Sweet World, Candice and Chocolates are present in several malls.

§The largest target segment for Cadbury is youth.

§Candico India is aiming for 400 locations across malls and multiplexes in the country by 2010.

Companies & Brands

§Cadbury - Cadbury, 5 Star, Bytes (chocolate snack), Celebration, Dairy Milk, Perk

§Nestle - Bar One, Kit Kat, Munch, Nestle

§Amul - Amul ( Chocozoo, Chocomines )

§Dairy Milk is the market leader

§5 Star (heritage brand which came to India in 1969) has a market share of over 14%

External Environment

üThe prices of cocoa and milk, the chief ingredients used in chocolates, have gone up by 50 per cent, while the price of sugar, another important raw material, has come down. The overall input costs have gone up by 20 per cent. If the prices of these commodities keep increasing, companies will be forced to increase the prices. India imports most of its cocoa requirements. The prices of cocoa have risen globally due to unavailability of the commodity.

üUS-based chocolate-maker Hershey’s is mulling a foray into the Indian chocolate market through its joint venture with Godrej


Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to the dark chocolate recipe of cocoa mass,...
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