4. Chocolate market in India is valued at Rs
2,000 crore and is growing at the rate of 18
– 20 per cent per annum.
The Indian chocolate market is seen
growing at a compounded annual growth
rate of 15-20%.
Chocolate consumption is gaining
popularity in India due to increasing
income and lifestyle. Over 70% of
chocolate consumption takes place in the
urban areas. Chocolate consumption in the
rural areas is negligible in India.
5. Volume – 30,000 tonnes
Value - 2,000 crore
Growth – Market growing @
18% - 20% per annum
Per Capita Consumption –
30 grams
6.
7. Chocolate market is a highly concentrated market, with
Cadbury having 70 per cent and Nestle around 16 per cent.
These two companies have been instrumental in building
up the chocolate market in India with huge investments in
product development, advertising and brand building.
Other companies constitute about 14% of the overall
market share.
9. The Indian chocolate market segments
consists of Bars or Moulded Chocolate
Segment like Dairy Milk, Amul, Nestle
Premium, and Truffle that account for 35%
– 40 % market volume,.
Countline Segment comprising of Count
Chocolates such as Five Star, Kitkat, Perk,
etc. is the next largest segment, accounting
for 30 %.
Choco-Panned Segment – comprising
chocolate forms like Butterscotch, Nutties,
Tiffins, etc., accounting to 10 %.
and very small market for Sugar-Panned
Segment – comprising chocolate forms
such as Gems, Chocolate eclairs, etc.
10. Dark Chocolate: New to the Indian
Subcontinent.
New Product Launch – Cadbury
Bournville (Dark Chocolate) and
Cadbury Silk.
14. Taste/Preference – Bars or Molded Chocolates.
Usage Pattern/Occasions – All occasions product.
Buying Pattern – Impulse buying or gifting purpose.
Brand Loyalty – As such no brand loyalty, yet Cadbury
is most preferred.
Segments – All age groups, income level and
geographic region, except for people suffering from
sugar related diseases.
•Children: 55%, Adults: 12%, Young Adults: 33%
15. The project was undertaken to understand the
perception and behaviour of consumers retail
outlet personnel Cadbury and Nestle were the
mainly targeted brands.
The sample population includes 60 consumers and
35 retail shops
The consumers were given 2 sections in
questionnaire; General section and Nestle and
Cadbury comparison. Retail shop personnel were
not given questionnaire but interviewed to obtain
their insights on the brand perception.
16. In this study the problem pertains among
the variable i.e.; what is general behaviour
of consumer and the extent of brand loyalty
and influence of one variable of from the
data. As the study is related to the study of
consumer behaviour and perception toward
chocolates so the research design used was
descriptive study with use of both
qualitative and quantitative design.
17. Cadbury brands are perceived better than
Nestle brands
Indian market. Bournville is considered as a
luxury product
, Dairy Milk is to enjoy a moment
Kit kat is for pleasure to the consumers.
18. The observations from the consumer
questionnaire concluded that Cadbury brands are
on the top of the respondents mind. Cadbury is
well known brand and perceived as better
chocolate brand even after the worm issue that
had negative impact on the brand image for long
period. Nestle brand is known but not on the top
of the mind. Kitkat is a well known brand among
other in Nestle.
19.
20. •Founded in the year 1824.
•Founder was John Cadbury.
•Head office is in Mumbai, India.
•Founded in India on 19 July
1948.
•Employees around 2000.
•Products - Cadbury dairy milk,
5-star, Perk, Gems, Éclairs
•Cadbury is a confectionery
company owned by Kraft
Foods.
•Founded in 1866.
•Founder was Henri Nestle.
•Headquarters is in Switzerland.
•Company operates in 86
countries around the world,
•Employees over 2,80,000 people.
•Products – MilkyBar,KitKat
,Munch.
•Nestle India Ltd
• First factory was set up in the
year 1961
•At Moga Punjab
21.
22.
23. SWOTOPPORTUNITIES
Increasing per capita national income
resulting in higher disposable income.
Growing middle class and growing
urban population.
Increasing gifts cultures.
Substitute to “Mithais”
WEAKNESS
Little penetration in the rural sector.
Poor technology in India compared
to current international technologies.
Limited Key products, only one
central brand (CDM).
STRENGTHS
Distribution Network
Market Share
Aggressive Marketing
Very strong brand equity in India.
Better market penetration.
THREATS
Rise in the cost of chocolate and dairy
products.
Entry of many foreign players in the
Indian Confectionary market, which are
giving higher margins to the retailers.
Changing consumer trends.
24. SWOTOPPORTUNITIES
Low penetration, consumption.
Launch of brands from international
portfolio.
Growth in international & emerging
markets
WEAKNESS
Raw material supply – volatile prices.
Chocolates - comparatively small
business unit
Lack of penetration of chocolates in
the rural market.
STRENGTHS
Strong distribution network.
Strong R&D
THREATS
Foreign imports.
There exists no brand loyalty in the
chocolate market and consumers
frequently shift their brands.
Changing consumer trends.
25. PRODUCT :
•Cadbury India Limited (CIL) confectionary
products include Dairy Milk, 5
Star, Eclairs, Perk, Halls, Bytes and Gems
which are the largest selling brands in their
segments.
PRICING :
•Cadbury’s has launched various products
which cater to all customer segments.
•So every customer segment has different
price expectation from the product.
•Therefore maximizing the returns involves
identifying right price level for each
segment, and then progressively moving
through them.
• e.g. : Dairy Milk Rs.5, Perk Rs. 10, 5 Star
Rs. 5 & Rs. 10, Fruit and Nut Rs. 22, Gems
Rs. 5 & 10, Break Rs. 5, Nutties Rs. 18.
PRODUCT :
•Nestle products are Kit-Kat, Munch,
Milky-bar, Charge, Classic, Polo. Kit-Kat is
their premium brand in chocolates.
PRICING :
Nestle sets prices of their products
according to the market demand as low as
possible because nestle is the trend setter
in the market.
•In line with Cadbury’s offerings Incentive
schemes – eg. Maha munch give more
value for the same price Priced at key
price points like Rs.5
26. Physical Distribution – “Place”
•Cadbury's distribution network
used to encompasses 2100
distributors and 450,000 retailers.
PROMOTION :
•Celebrities endorsements.
•The big factor that has pushed up
cdm sales is the Amitabh
Bachchan campaign. Cadbury
appointed Amitabh Bachchan as its
brand ambassador.
•Cadbury product are marketed
aggressively in the market.
Physical Distribution – “Place”
•General FMCG distribution structure.
Strong coverage in urban areas, developing in
rural.
•New Regional Sales Offices to increase width
and penetration and focus in rural areas.
PROMOTION :
•Brand ambassador- Rani Mukherjee for
munch ( targeting youth)
•ADVERTISING - Decreased dependence on
children’s TV channels over recent years 33%
of total industry spend but near equal spend on
each brand with rival offerings from Cadbury.
27. Cadbury captures 70% of
market share
In Cadbury Dairy Milk
accounts for maximum
share
Five star come at 2nd
place
Nestle captures 16% of
market share.
In Nestle Munch accounts
for maximum share
Kit Kat comes at 2nd place
28. Government policies in terms of licensing, duties, movement of agricultural
commodities etc. Also affect the introduction of products, time lag for a product
launches, taxes, excise, etc all influence the business.
Rupee depreciation improves export realizations, however it also makes import of
raw material (esp. Cocoa) expensive.
Threat from foreign brands.
Inflationary pressures on raw material prices
Lack of government initiative – high excise and import duties
High entry barriers due to duopolistic market
Price-sensitive consumer.
29. Aware Of Cadbury
98% Yes
2% No
Source Of Awareness
70% AD’s
18% W,O,M
12% Saw in shop
Aware Of Nestle
90% approx
10% No
Source Of Awareness
60% AD’s
30% Saw in Shops
10% Suggestions
