A small analysis of the chocolate market in India with respect to the two dominating players Cadbury and Nestle in the year 2011.

1. Inder Bangari
IPERPGDM 2010-12
TRIM 4
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2. Market Size

 Volume – 30,000 tonnes
 Value - 2,000 crore
 Growth – Market growing @ 18% - 20% per annum
 Per Capita Consumption – 30 grams
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3. Product

Segment –
 Bars or Moulded Chocolates (35% to 40%)
 Counts (30%)
 Panned Chocolates (Gems) (10%)
 Assorted Chocolates
New Product –
 Dark Chocolate: New to the Indian Subcontinent.
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4. Competitors

 Cadbury at first position with 70% Market Share.
 Nestle at second position with 25% Market Share.
 Strength/Competitive Advantage –
• Cadbury: Wide product range, good
prices, international business, advertising, good
availability.
• Nestle: Strong parent company being the world’s largest
processed food and beverages manufacturer, access to
parent’s hugely successful global folio of products and
brands, Nestle has some very strong brands which are
almost generic to their product categories.
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Cont...

5. Cont…

 New Product Launch – Cadbury Bournville (Dark
Chocolate) and Cadbury Silk.
 Promotion – Through television commercials and print
advertisings.
• Cadbury’s marketing cost: 18% of total cost of
production.
• Nestle’s marketing cost: 12% of total cost of production.
 Growth – The consumption is impulse led and driven
largely by convenient price points. As economic growth
creates more disposable income with more people the
consumption is expected to increase.
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Cont...

6. Cont…

 Positioning Platform –
• Cadbury has sought to position itself in the
chocolate category as a celebratory food product
while keeping the attributes of its Indian legacy
intact.
• Nestle has sought to position itself in the chocolate
category for snacking consumption.
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Cont...

7. Cont…

 Channels of Distribution –
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8. Consumer

 Taste/Preference – Bars or Moulded 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%
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9. Growing Market
 –
 Economic and other environment
• Political: Since the budget range is decontrolled, no
political effects are envisaged.
• Economic: Increasing per capita income resulting in
higher disposable income.
Growing middle class/urban population – increase in
demand.
Low cost of production – better penetration.
• Social: Per capita consumption expected to increase.
Increasing gifts culture – increase in demand .
Lower cholesterol than “mithais” (sweet meat)
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substitute demand. Cont...

10. Cont…

• Technological: Will have to reinforce technology to
international levels once India is a “free” economy.
 Trade – Margins range between 10% to
20%, depending upon the price point at which the
product is placed.
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11. 
Thank You.
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