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CHOCO HONEY
Marketing plan : MM-1&2
PGDM 2012-14 IMI-K
Abhishek Kumar Jha
Abhishek Pal
Anand Kumar
Anulika Singh
Nimesh Sh...
AGENDA

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

Market Overview
PEST Analysis: Chocolate Industry
Company overview: Da...
MARKET OVERVIEW

•

The chocolate market in India is pegged at ₹ 2,000 crore and is growing at a rate of 18-20 per
cent pe...
MARKET OVERVIEW

•

The size of the market for chocolates in India was estimated at 38,000 tonnes in 2012.

•

Bars of mou...
ENVIRONMENTAL ANALYSIS

PEST/OT

P
E

O
Stable democracy
Favorable government policies.

T
Coalition govt.

Fast Emerging ...
COMPANY OVERVIEW : DABUR

One of the largest FMCG Company of India
Consolidated Turnover of ₹ 5283 Crore (about $1 billion...
Chocolate Industry : India

Rs 2000 Cr

2012

2030

2050
PRODUCT SUMMARY

Product Name: Choco Honey
Product: Close to new line of business
Product Tagline: Swad Se Sehat Ki ore
St...
Porter’s five forces
Foreign Players&
Domestic Big Players
Threat of new
Entrant

Cocoa
Suppliers

Bargaining
power of
sup...
Competitor Analysis: Cadbury

•
•
•
•

•

Cadbury is a confectionary company owned by Kraft Foods and is the industry's se...
Competitor Analysis: Nestle

•
•

Nestlé’s first sales agents in India began work in Chennai and Kolkata in 1912.
Today, t...
COMPETITOR ANALYSIS: PRICING

•

Price is same all over India.

•

Competitive pricing.

•

Due to price hike in raw mater...
SWOT ANALYSIS (DABUR)

Type of Factor

Location of
Factor

FAVOURABLE

UNFAVOURABLE

Strength

EXTERNAL

Brand Name
Strong...
Market Research : Understanding the consumer

Buyer motives
Market Research : Understanding the consumer

1. Why do you purchase chocolates ?
Market Research : Understanding the consumer

2. Which is your most preferred brand for chocolates ?
Market Research : Understanding the consumer

3. Why do you prefer this brand (chosen by you) ?
Market Research : Understanding the consumer

Buyer Habits
Market Research : Understanding the consumer

4. How often do you buy chocolates ?
Market Research : Understanding the consumer

Psychological process underlying buying decisions
Market Research : Understanding the consumer

5. What do you focus while buying a chocolate ?
Market Research : Understanding the consumer

6. Do you perceive chocolate as a health product ?
Market Research : Understanding the consumer

Participants and roles
Market Research : Understanding the consumer

7. You buy chocolates for :
MARKET RESEARCH

1. Which flavour of chocolate would you prefer ?
Market Research : Understanding the consumer

2. How do you perceive honey ?
Market Research : Understanding the consumer

4. In which form (shape and size) would you prefer chocolate ?
Market Research : Understanding the consumer

6. Are you ready to try out a new brand of chocolate ?
DEFINING PRODUCT

Name : CHOCO HONEY
Attributes :
Sweet in taste
Ingredients: Honey, Tulsi, Chocolate.
Price range : ₹5-50...
SEGMENTATION

•

Demographic : Consumers within the age group of 5-40

•

Geographic : In and around Kolkata

•

Based on ...
TARGETING

•

Based upon our Online Market Research we shall Target following segment of
population:

•

For Kolkata regio...
POSITIONING

•

Combines the taste of chocolate with the delicious taste of honey.

•

It will compete against products li...
MARKETING MIX

Product
• Honey and Tulsi combo based
Chocolate.
10.5gm, 22gm, 95gm

Price
• ₹ 5-20 (Bar)
• ₹ 20-50 (Cartoo...
Market Research : Understanding the consumer

3. How much are you ready to spend on a chocolate ?
SHOWCASING : PRODUCT

Category (₹5 - ₹20)

Chocolate coating

Honey +Tulsi
SHOWCASING : PRODUCT

Category (₹20 - ₹50)

Cashew nut

Almond
So far we have done…… (MM-I)

WHAT WE DID IN MM-1?

MARKET ANALYSIS

SWOT ANALYSIS

COMPETITORS

STRATEGIES

TARGET MARKET
MM-II FOCUS

• The firms obtain competitive advantage and synergy
through integrated programs between the marketing
mix va...
INBOUND LOGISTICS

Warehouse
Manufacturing
Plant

Dabur ltd.
OUTBOUND LOGISTICS
Manufacturing
Plant

Retail Store

Warehouse

Hyper market
Marketing Strategy and Distribution
Channel Design

CHOCO-HONEY’S DISTRIBUTION CHANNEL STRATEGY

POSITIONING

TARGET

GOAL...
DISTRIBUTION OBJECTIVE

• A conduit between manufacturer and customer.
• Not possible to reach out to potential target
cus...
STRATEGIC DISTRIBUTION DECISIONS

•
•
•
•

Multichannel distribution system.
Push strategy.
Nearby location(customers).
In...
CHANNEL INTERMEDIARIES

PRODUCER

Supermarkets

Hypermarkets

Wholesaler

Highway
Retailing

Departmental
store

Convenien...
CHANNEL MANAGEMENT

• Channel Management
• Channel Power
• Relying on core competency of strong
distribution channel of Ou...
PRICING STRATEGY

Nature of Chocolate Industry :
 High volumes
 Huge expenses on advertising
 Low margins
 Price sensi...
MANUFACTURING COSTS AND OVERHEADS

Budget Allocated for this project : ₹20 crores
1.

Cost of raw materials (cocoa beans, ...
SELLING AND DISTRIBUTION COSTS

Budget Allocated for this project : ₹20 crores
Total marketing budget out of this (@25% of...
BREAK EVEN ANALYSIS AND TARGET PROFIT

1 crore

20 cr

5 cr

1 cr
VALUE BASED PRICING BASED ON SURVEY

Based upon our Online
Market Research we
find that consumers are
ready to pay in the ...
VALUE BASED PRICING (₹5-₹20 RANGE)

Name : CHOCO HONEY
Attributes :
Sweet in taste
Ingredients: Honey, Tulsi, Chocolate.
P...
VALUE BASED PRICING (₹21-₹50 RANGE)

Name : CHOCO HONEY
Attributes :
Sweet in taste
Ingredients: Honey, Tulsi, Chocolate.
...
PROMOTION

Five promotion mix tools for communicating customer value :
• Advertising
• Personal selling
• Sales promotion
...
PROMOTION

Outline the communications process and the steps in
developing effective marketing communications
• Identify th...
Ways to promote

Promoting in small packs or candy style.
• Children’s park
• Substitute gifts for petty cash
• Complement...
ADVERTISING

• Basing objectives on Target Market, positioning and
marketing mix
• Communicating Customer Value
• Informat...
INFORMATIVE ADVERTISING

• Will communicate customer value
• Build Choco honey’s image under the brand umbrella
of Dabur.
...
AD-WORDS

• Setting advertising objectives
• Setting the ad budget
• Developing an advertising strategyAdvertising messag...
PUBLIC RELATIONS

•
•
•
•

Press relations or press agency
Product publicity via publicizing
Managing Public affairs activ...
CHOCO HONEY

THANK YOU
Choco honey
Swad se sehat ki ore
THANK YOU
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Final marketing project mm 1&2 gr 2 ss

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Final marketing project mm 1&2 gr 2 ss

  1. 1. CHOCO HONEY Marketing plan : MM-1&2 PGDM 2012-14 IMI-K Abhishek Kumar Jha Abhishek Pal Anand Kumar Anulika Singh Nimesh Shukla Pamela Roy Prasenjeet Tewari
  2. 2. AGENDA 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Market Overview PEST Analysis: Chocolate Industry Company overview: Dabur Product summary Porter’s five forces Competitors analysis SWOT analysis Market research & Product definition Segmentation Targeting Positioning Marketing mix Showcasing : Product
  3. 3. MARKET OVERVIEW • The chocolate market in India is pegged at ₹ 2,000 crore and is growing at a rate of 18-20 per cent per annum. • Increasing consumer demand has led to more and more players entering the market. • The industry is extremely fragmented in terms of range of products. • The two giants Cadbury with 70 per cent and Nestle around 20-25 per cent have been instrumental in building up the chocolate market in India. • The chocolate is worth ₹ 3,200 crore in India of which Cadbury Kraft Foods has a 70% share, 20% is held by Nestle and the others operate in the remaining 10%, which forms around ₹ 310320 crore. • Some of the foreign players are Mars, Guylian, Lindt, Hershey’s and other Swiss chocolates.
  4. 4. MARKET OVERVIEW • The size of the market for chocolates in India was estimated at 38,000 tonnes in 2012. • Bars of moulded chocolates like amul, milk chocolate, dairy milk, truffle, nestle premium, and nestle milky bar comprise the largest segment, accounting for 37% of the total market in terms of volume. • The chocolate market in India has a production volume of 39,400tonnes. • The chocolate segment is characterized by high volumes, huge expenses on advertising, low margins, and price sensitivity. • The chocolate market today is primarily dominated by Cadbury and Nestle, together accounting for 90% of the market.
  5. 5. ENVIRONMENTAL ANALYSIS PEST/OT P E O Stable democracy Favorable government policies. T Coalition govt. Fast Emerging economy with a population of over 1.25 billion. Recession Proof product market, Early product life life cycle. . FDI – 100% ₹25000 crore of Market, growing@ 20%. T L Obesity Other health disorders Availability of skilled man power. National Dairy Research Institute. Perishable product-storage & transportation. Heavy dependency on import for cocoa. FSS Act, 2005 S Rising Consumer Disposable Income among high and middle income growth Change in consumer preferences from sweet to chocolate. Change in Lifestyle trend and food habits High compliance
  6. 6. COMPANY OVERVIEW : DABUR One of the largest FMCG Company of India Consolidated Turnover of ₹ 5283 Crore (about $1 billion) FY 2012. Differentiated Product Strong herbal and natural profile More than 100 years of exp. in Ayurveda Wide distribution network Covering over 3.4 million retail outlets all over India High penetration in urban and rural area Brand strength Strong brand in diverse categories Mother brand DABUR trusted for natural and herbal health care ₹12 billion brand value Strategic Positioning Honey as food product, leading to market leadership (over 75%) in branded honey market
  7. 7. Chocolate Industry : India Rs 2000 Cr 2012 2030 2050
  8. 8. PRODUCT SUMMARY Product Name: Choco Honey Product: Close to new line of business Product Tagline: Swad Se Sehat Ki ore Strategic positioning of Honey as food product, leading to market leadership (over 75%) in branded honey market of Dabur.
  9. 9. Porter’s five forces Foreign Players& Domestic Big Players Threat of new Entrant Cocoa Suppliers Bargaining power of suppliers Cadbury Nestle Threat of substitutes Sweet shop, cookies, cakes, Gifts Bargaining power of Buyers Consumers
  10. 10. Competitor Analysis: Cadbury • • • • • Cadbury is a confectionary company owned by Kraft Foods and is the industry's secondlargest globally after Mars, Incorporated. With its headquarters in Uxbridge, London, England, the company operates in more than 50 countries worldwide. Cadbury was incorporated in India on 19 July 1948. Cadbury Kraft Foods has been a market leader in the chocolate category since the last 64 years in India. It is the market leader in the Indian chocolate confectionery business with a market share of over 70%.
  11. 11. Competitor Analysis: Nestle • • Nestlé’s first sales agents in India began work in Chennai and Kolkata in 1912. Today, the company directly employs 6,000 people in India and more than half a million indirectly. • Its products are sold in more than 3.5 million outlets across the country .
  12. 12. COMPETITOR ANALYSIS: PRICING • Price is same all over India. • Competitive pricing. • Due to price hike in raw material and labour cost company had not increased the cost of product but reduced the weight of product. • Eg. ₹5 pack was of 13gm but now it is 10.5gm
  13. 13. SWOT ANALYSIS (DABUR) Type of Factor Location of Factor FAVOURABLE UNFAVOURABLE Strength EXTERNAL Brand Name Strong distribution system Deep penetration Requires suppliers for cocoa and milk Inadequate storage facilities Opportunity INTERNAL Weakness Threat Open to try new brand Only few honey flavors exist Increasing demand Import Policies Rising raw material cost Industries stretching their operations Duopolistic market
  14. 14. Market Research : Understanding the consumer Buyer motives
  15. 15. Market Research : Understanding the consumer 1. Why do you purchase chocolates ?
  16. 16. Market Research : Understanding the consumer 2. Which is your most preferred brand for chocolates ?
  17. 17. Market Research : Understanding the consumer 3. Why do you prefer this brand (chosen by you) ?
  18. 18. Market Research : Understanding the consumer Buyer Habits
  19. 19. Market Research : Understanding the consumer 4. How often do you buy chocolates ?
  20. 20. Market Research : Understanding the consumer Psychological process underlying buying decisions
  21. 21. Market Research : Understanding the consumer 5. What do you focus while buying a chocolate ?
  22. 22. Market Research : Understanding the consumer 6. Do you perceive chocolate as a health product ?
  23. 23. Market Research : Understanding the consumer Participants and roles
  24. 24. Market Research : Understanding the consumer 7. You buy chocolates for :
  25. 25. MARKET RESEARCH 1. Which flavour of chocolate would you prefer ?
  26. 26. Market Research : Understanding the consumer 2. How do you perceive honey ?
  27. 27. Market Research : Understanding the consumer 4. In which form (shape and size) would you prefer chocolate ?
  28. 28. Market Research : Understanding the consumer 6. Are you ready to try out a new brand of chocolate ?
  29. 29. DEFINING PRODUCT Name : CHOCO HONEY Attributes : Sweet in taste Ingredients: Honey, Tulsi, Chocolate. Price range : ₹5-50 Flavours : Just honey (5-20 category),Rich Almond and Nut(20-50 category). Value : Taste and health
  30. 30. SEGMENTATION • Demographic : Consumers within the age group of 5-40 • Geographic : In and around Kolkata • Based on our extensive Market research one third of our consumer preferred chocolate in the price range of ₹20-50, while more than10% preferred for price segment more than ₹ 100. • That indicates people from middle class and educated middle class are significant part of our consumer base.
  31. 31. TARGETING • Based upon our Online Market Research we shall Target following segment of population: • For Kolkata region and surrounding urban sector • People from SEC A1, A2, B1, B2 • • • • For Rural region:People from R1 & R2 shall be targeted. Process for targeting: Sweet loving consumers Consumers who consider sweets as gifts
  32. 32. POSITIONING • Combines the taste of chocolate with the delicious taste of honey. • It will compete against products like Dairy Milk by Cadbury and Milky-bar by Nestle. • Differentiator : The combination of chocolate with honey. • Focus on health.
  33. 33. MARKETING MIX Product • Honey and Tulsi combo based Chocolate. 10.5gm, 22gm, 95gm Price • ₹ 5-20 (Bar) • ₹ 20-50 (Cartoon shaped) Place • Schools, college canteens, offices. • Mom & Pop stores. • Dabur’s retail network and dealers. Promotion •Television commercials •Celebrity endorsement •Posters and billboards •Print media •E-marketing
  34. 34. Market Research : Understanding the consumer 3. How much are you ready to spend on a chocolate ?
  35. 35. SHOWCASING : PRODUCT Category (₹5 - ₹20) Chocolate coating Honey +Tulsi
  36. 36. SHOWCASING : PRODUCT Category (₹20 - ₹50) Cashew nut Almond
  37. 37. So far we have done…… (MM-I) WHAT WE DID IN MM-1? MARKET ANALYSIS SWOT ANALYSIS COMPETITORS STRATEGIES TARGET MARKET
  38. 38. MM-II FOCUS • The firms obtain competitive advantage and synergy through integrated programs between the marketing mix variables (product, price, communication, and marketing channels) and the consumer behaviour aspects. • Marketing Objective is to create and deliver value, this time we are here to deliver Choco Honey to our target customer to capture value in return.
  39. 39. INBOUND LOGISTICS Warehouse Manufacturing Plant Dabur ltd.
  40. 40. OUTBOUND LOGISTICS Manufacturing Plant Retail Store Warehouse Hyper market
  41. 41. Marketing Strategy and Distribution Channel Design CHOCO-HONEY’S DISTRIBUTION CHANNEL STRATEGY POSITIONING TARGET GOALS COMPETITIVE ADVANTAGE SYNERGY
  42. 42. DISTRIBUTION OBJECTIVE • A conduit between manufacturer and customer. • Not possible to reach out to potential target customer in a cost effective way. • Choco-honey, being a convenience good, requires extensive distribution. • To deliver value to the customers through the best possible channel. • Cost effective – Distribution sales force
  43. 43. STRATEGIC DISTRIBUTION DECISIONS • • • • Multichannel distribution system. Push strategy. Nearby location(customers). Intensive distribution.
  44. 44. CHANNEL INTERMEDIARIES PRODUCER Supermarkets Hypermarkets Wholesaler Highway Retailing Departmental store Convenience store
  45. 45. CHANNEL MANAGEMENT • Channel Management • Channel Power • Relying on core competency of strong distribution channel of Our company.
  46. 46. PRICING STRATEGY Nature of Chocolate Industry :  High volumes  Huge expenses on advertising  Low margins  Price sensitivity We will prefer Market-penetration pricing Reaching out to maximum number of consumers and acquiring market share is of prime importance at this stage of our product life-cycle.
  47. 47. MANUFACTURING COSTS AND OVERHEADS Budget Allocated for this project : ₹20 crores 1. Cost of raw materials (cocoa beans, milk, sugar, honey, tulsi, cocoa powder, nuts) = ₹2 crore 2. Cost of transportation of raw materials = ₹20 lakh (@ ₹1505.20 per tonne freight charge from Kerala to Asansol, carriage charges from manufacturing plant at Asansol to warehouse in Kolkata, transportation of milk from Jharkhand to Asansol, carriage charges to retailers, distributors) 3. Cost of setting up factory, warehouse and equipment = ₹5 crores
  48. 48. SELLING AND DISTRIBUTION COSTS Budget Allocated for this project : ₹20 crores Total marketing budget out of this (@25% of the project budget) = ₹5 crores  Start-up marketing activities : 60% of allocated marketing budget • Brand Building Cost (@20% of allocated budget) = ₹1 crore • Promotional Activities (@40% of allocated budget) = ₹2 crores  Run-rate marketing activities : 40% of allocated marketing budget • Margins to downstream distribution channel network (@10% of allocated budget) = ₹50 lakhs • Price adjustment strategies – discount and allowance pricing (@5% of allocated budget) = ₹25 lakhs • Commissions, Bonuses, Incentives to sales agents (@25% of allocated budget) = ₹1.25 crores
  49. 49. BREAK EVEN ANALYSIS AND TARGET PROFIT 1 crore 20 cr 5 cr 1 cr
  50. 50. VALUE BASED PRICING BASED ON SURVEY Based upon our Online Market Research we find that consumers are ready to pay in the range of ₹5 - ₹50.
  51. 51. VALUE BASED PRICING (₹5-₹20 RANGE) Name : CHOCO HONEY Attributes : Sweet in taste Ingredients: Honey, Tulsi, Chocolate. Price range : ₹5-₹20 Flavours : Just honey Value : Taste and health
  52. 52. VALUE BASED PRICING (₹21-₹50 RANGE) Name : CHOCO HONEY Attributes : Sweet in taste Ingredients: Honey, Tulsi, Chocolate. Price range : ₹21-₹50 Flavours : Rich Almond and Nut Value : Taste and health
  53. 53. PROMOTION Five promotion mix tools for communicating customer value : • Advertising • Personal selling • Sales promotion • Public relations • Direct marketing
  54. 54. PROMOTION Outline the communications process and the steps in developing effective marketing communications • Identify the target audience • Define the communication objectives • Find highly credible sources to deliver messages • Collect feedback.
  55. 55. Ways to promote Promoting in small packs or candy style. • Children’s park • Substitute gifts for petty cash • Complementary gift • Separate display designs • Encouraging customers • Doctors’ desk • Blood donation camps
  56. 56. ADVERTISING • Basing objectives on Target Market, positioning and marketing mix • Communicating Customer Value • Informative Advertising • Persuasive advertising as competition increases
  57. 57. INFORMATIVE ADVERTISING • Will communicate customer value • Build Choco honey’s image under the brand umbrella of Dabur. • Explain how the product works • Suggest new uses n attributes • Inform the market of price charges • Correct false impressions if at all
  58. 58. AD-WORDS • Setting advertising objectives • Setting the ad budget • Developing an advertising strategyAdvertising messages Advertising Media
  59. 59. PUBLIC RELATIONS • • • • Press relations or press agency Product publicity via publicizing Managing Public affairs actively Lobbying with legislators and government officials to influence decisions • Investor relations • Development of PR with donors and NGOs
  60. 60. CHOCO HONEY THANK YOU
  61. 61. Choco honey Swad se sehat ki ore
  62. 62. THANK YOU

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