DATE :- 08/09/2008
CHOCOLATE MARKET ANALYSIS
NAME :- ARCHANA MANI ROLL NO :- 03 CLASS :- MMS 2008-10 DIVISION :- A
NO. 1. 2.
CONTENTS INTRODUCTION PESTND ANALYSIS 2.1 EXTERNAL ENVIRONMENT 2.2 DEMOGRAPHICS 2.3 SOCIO-CULTURAL 2.4 TECHNOLOGICAL 2.5 LEGAL BIG PLAYERS 3.1 NESTLE INDIA LTD 3.2 SWOT ANALYSIS 3.3 CADBURY INDIA LTD 3.4 SWOT ANALYSIS AMUL LTD CADBURY & NESTLE ANALYSIS 5.1 STRATEGY 5.2 MARKET COMPETITION 5.3 GENERIC COMPETITION 5.4 STRATEGIES TO KILL FAKE BRANDS PRICING TARGET MARKET & POSITIONING ADVERTISING DISTRIBUTION AMUL ANALYSIS 10.1 TARGET MARKET 10.2 MARKET SHARE 10.3 DISTRIBUTION 10.4 PRICING 10.5 ADVERTISING CONCLUSION REFERENCES
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The Confectionery industry in India is approximately divided into: • Chocolates • Hard-boiled candies • Éclairs & toffees • Chewing gums • Lollipops • Bubble gum • Mints and lozenges The global chocolate market is worth $77 billion .The Chocolate market in India is estimated to be around 1500 crores growing at 18-20% per annum. The per capita consumption of Chocolate in India is 300 grams. Over 70% consumption takes place in urban markets. Chocolate sales have risen by 15% in 2007 to reach 36000 tonnes. Thus the chocolate market in India is a niche market penetrated largely in urban areas and per capita consumption is low as compared to those in developed countries of the West. The global confectionery market is valued at $141 billion. The category is largely consumed in urban areas with a 73% skew to urban markets and a 27% to rural markets. Developed markets account for around 67% of the global market. Global Confectionery Market Category Share by US Dollar Value ( percent )
14 Chocolate Candy 31 55 Gum
The organized segment of the Indian confectionery market is dominated by Nutrine confectionery and Parry confectionery, apart from the Indian arms of MNCs such as Perfetti India and Warner Lambert. While the chocolate market in India is dominated by Cadbury India and Nestle India
2. PESTND analysis 2.1 External environment
• The prices of cocoa and milk, the chief ingredients used in chocolates, have gone up while the price of sugar, another important raw material, has come down. The overall input costs have gone up by almost 20%. If the prices of the commodities keep increasing, the companies will be forced to increase the prices of chocolates. US- based chocolate maker Hershey’s is mulling a foray to enter into the Indian chocolate market through its joint venture with Godrej. Any firm should look out for signs of joint ventures or acquisitions taking place globally that would affect their standing in the market. Many places in India are untapped by the chocolate market due to heavy dominance of unorganized sectors and fake chocolate products. Thus the organized firms can use this opportunity to penetrate into the untapped markets. The exchange rates are constantly changing and can be unstable. The chocolate and cocoa industry relies on their end product and ingredients across borders in order to offer variety to consumers. If the market price increases, demand for chocolates being elastic may drive away consumers. •
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India scores over several developed markets in terms of demographics connected to youth population. There is also the children segment, which can be targeted by chocolate companies. 45% in India are under 20 years of age. There is 9% increase in the per capita disposable income in 2007. The age cycle should be considered while segmenting the market. A brand having strong goodwill can use it for catering to every age group through its products The consumer shopping behaviour should be analyzed. 30% confectionery products are planned purchases, 37% are semi- impulse and 33% are pure impulse buys.
• Lifestyles of the...
References: • http://www.hinduonnet.com/businessline/iw/2001/07/22/05h dline.htm • http://msnmoney.brand.edgaronline.com/EFX_dll/EDGARpro.dll?FetchFilingHTML1?ID=5859162&S essionID=jD3hWZnjVRJFbg9 • http://findarticles.com/p/articles/mi_m0EIN/is_2007_Oct_9/a i_n27399632 http://www.cadburyindia.com/cadtoday/company.asp • • • • • • • • • • • • http://www.icmrindia.org/casestudies/catalogue/marketing%20commun ications/CLMC007.htm
http://www.thehindubusinessline.com/2002/07/03/stories/20020703007 60600.htm http://www.businessweek.com/globalbiz/content/jan2008/gb20080117_69287 6.htm
http://fmcgmarketers.blogspot.com http://www.livemint.com/2007/09/09235840/Cadbury-hopes-to-cash-in-onye.html http://www.icmrindia.org/casestudies/catalogue/marketing%20communic ations/CLMC007.htm http://www.business-standard.com/india/storypage.php?autono=297576 http://www.scribd.com/doc/1404803/HDFC20080122NestleIndia www.cadburyindia.com www.nestle.in www.amul.com
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