Chocolate Industry

Topics: Chocolate, Marketing, Brand Pages: 32 (8102 words) Published: October 6, 2011
Contents Titles

1. Introduction
2. Objective
3. Research Methodology
4. Chocolate Industry
5. Chocolate in a Bloom
6. Chocolate Industry in India
7. Major Players
8. Amul
9. Nestle
10. Cadbury
11. SWOT analysis of Cadbury
12. Market Segmentation
13. Psychographics and Demographics
14. Product Positioning
15. Product Market Boundary
16. Price Sensitivity
17. Consumer Buying Behaviour
14. Industry Structure and Dynamics
15. The Rural Conundrum
16. Key Success Factors
17. Product Life Cycle
18. Positioning
19. 5 Force Model
18. Rural Market Initiatives
20. Suggestions
21. Conclusion
22. Bibliography


Chocolates had its beginning in the times of the Mayas and the Aztecs when they beat cocoa into a pulp and made bitter frothy chocolate out of them. They first became popular in Europe in a highly unrefined form. Then the Hershey Food Company was the first to bring out chocolates in the currently popular solid form. The main ingredients of chocolate is cocoa grown mainly on equatorial zones and of the consumers looks for variety he goes in for some of that company’s own sugar milk solids and permitted emulsifiers. Cocoa constitutes nearly 40% of the total raw material cost.

The report initially focuses on an examination of the chocolate industry environment and the product class. The product then goes on to analyze the corporate, marketing and advertising strategies adopted by the companies and accordingly look for new opportunities. It concludes by looking at the prospect, segmentations, positioning, values to be delivered, and future challenges for the industry.


The major objective is to study the Marketing Segmentation of Chocolate •To understand the consumer buying behaviour of chocolate through survey •To analyze the survey and extract information out of it

To study the Industry Structure and Dynamics
To create a product in the subject industry that would provide the consumers with new value at the existing price level


The chocolate industry in India has a size of 30,000 tones and is worth about Rs 3,000 crores. The chocolate market has been growing by nearly 18 %. The chocolate market is predominantly urban with coverage of 85 %. Chocolate consumption in India is extremely low. Per capita consumption is around 300 Gms in the urban areas, compared to 8 kg in Switzerland. In rural areas, it is even lower. Chocolates in India are consumed as indulgence and not as a snack food. A strong volume growth was witnessed in the early 90s when Cadbury repositioned chocolates from children to adult consumption. The biggest opportunity is likely to stem from increasing the consumer base. Leading players like Cadbury and Nestle have been attempting to do this by value for money offerings, which are affordable to the masses. Cadbury, a subsidiary of Cadbury Schweppes is a dominating player in the Indian chocolate market with strong brands like Dairy Milk, Five Star, Perk, and Gems etc. Dairy milk is the largest chocolate brand in India. Chocolates & Confectioneries contribute to 75% of Cadbury’s turnover. Cadbury also has a strong brand Bourn vita in the malted health drink category, which accounts for 24% of turnover.


Chocolate-lovers may soon find their chocolate dearer if the problems plaguing the industry continue. Raw material costs have risen by more than 20 % in the last few years. Although retail prices have not increased, a rise in input costs will force the manufacturers to consider a price hike. The Bigger players in the country such as Cadbury, which leads the Rs 2,500 crore chocolate markets in India with a share of 72%, will find it easier to absorb the surge in input costs as it has products at various price points in the market, said industry experts. Cadbury may also opt for a price hike, albeit marginal, if the current trend continues. Indian Chocolate...
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