strategic analysis of chocolate in confectionary industry - Comparing Vision,Mission,Values,Objectives,SWOT analysis,STP,USP,Tagline of four major companies

1. STRATEGIC ANALYSIS on CHOCOLATE in
CONFECTIONARY INDUSTRY
BY
A.SOWMYA
13HM06
NITK
MBA2013-15

2. Introduction
• Indians like to celebrate with sweets and
they start relishing it at a pretty young age.
• While the West may be more calorie
conscious, the Indian kids start off by
indulging in all sorts of sugar boiled
candies.
• No wonder, the confectionery industry is
one of the largest and well developed
among the food processing sectors in the
country.
• The confectionery industry in India is

3. Manufacturers
The organized confectionery segment in India segment is dominated
by the multinational companies; however, domestic players are
increasingly finding a prominent position in the market. The key
players in the confectionery sector in India today are:
• Cadbury India Ltd is the largest manufacturer of chocolate,
confectionery and malted food products.
• Nestle India Ltd is a manufacturer and marketer of coffee, tea,
malted beverages, instant baby cereals & foods, milk products,
chocolates and confectionery, instant foods and culinary products.
• Lotte India Corporation Ltd is primarily a manufacturer and marketer
of sugar boiled confectionery, cocoa and milk based toffees, candies
and mints.

5. Mission
"Cadbury’s mission statement says simply: ‘Cadbury means
quality’; this is our promise. Our reputation is built upon quality;
our commitment to continuous improvement will ensure that our
promise is delivered’
Vision
The Barrow Cadbury Trust’s vision is of a peaceful, equitable
society, free from discrimination and based on the principle of
social justice for all.
Objective
• to make lots of chocolate.
• improve the quality of their chocolate.
• To Survive in the market.
• Have loads of stores worldwide

6. • BRANDS
TEMPTATIONS
OREO
DAIRYMILK
PERK
5STAR

8. Nestle
Vision
“Respected, Trustworthy Food, Nutrition,
Health and Wellness Company”
Mission
GOOD FOOD NESTLE GOOD LIFE
Their mission is to provide consumers with
the best tasting, most nutritious choices in a wide
range of food and beverage categories and eating

9. • BRANDS
Milkybar
MILKMAID
EVERYDAY DAIRY WHITENER
KITKAT
BARONE
POLO

11. AMUL
Vision
The taste of India is to be a part of everyone's
life.
Mission
Expansion of distribution network, creative
marketing, consumer education and product
innovation.
OBJECTIVE
To ensure that the maximum share of the
consumer’s rupee goes back to the milk
producers.

12. • BRANDS
FUNDOO
AMUL COOKING CHOCLOATE
FRUIT & NUT
CHOCOZOO
BINDAZZ

14. CAMPCO
The Central Areca nut and Cocoa Marketing and Processing
Co-operative Limited or CAMPCO.
Vision
To help the farmers procure more areca nut and cocoa,
thereby helping them to get a market for their products.
Mission
To bring about
 Co-operation between people
 Harmony between faiths &
 To make sure the fragrance of peace forever

15. Objectives
 To export areca nut and cocoa and other products.
 To procure areca nut and cocoa from growers on agency
basis or on outright purchase basis.
 To open branches, depot & go downs, showrooms and
factories etc..
 To undertake pooling, packing and standardization of areca
nut and cocoa.

16. • BRANDS
Melto
Cream
Treat
Turbo
Megabyte
CAMPCO mini bar
 Éclairs
Krust
Krunchos

18. LOTTE INDIACORPORATIONLtd.
Vision
Enhance its world leadership in
confectionary by creating value for people
through delightful and imaginative high quality
products
Mission
To develop, manufacture and market high
quality and innovative products for their
consumers through efficient use of their
resources and in partnership with their
customers. And to create a fulfilling workplace

19. • Core values
Costumer focus
Originality
Partner ship
Responsibility
Passion
• BRANDS
 BOOPROO
 SPOUT
 Coffee Bite
 Lacto King
 Chocopie
 Caramilk

20. COMPANY STRENGHTS WEAKNESS OPPORTUNITY THREATS
CADBURY’S
• Well known
brand &
Priced
according
to Indian
mindset.
• Strong
marketing
and
distribution
channel.
• Lack of
penetration
in rural
market
• Large
population
suffers from
diabetes,
cholesterol
disorders
etc.
• Occasion
celebrations
and festivals
in India.
• Increasing
acceptance
of
Globalization
& chocolate
market.
• No brand
loyalty in
the
chocolate
market.
• Other
substitute
s (sweets
and
deserts)&
brands.
• New
variants
• Unmatched
product and
brand
portfolio.
• R&D
capabilities.
• Distribution
• Inability to
provide
consistent
quality in
food
products
• Weak
• Increasing
demand for
healthier
food
products.
• Acquiring
start-ups
• Food
contamina
tion.
• Trend
towards
healthy
eating.

21. LOTTE
• Totally
focused on
chocolate,
candy,
chewing
gum.
• South
Korea’s
No.1
confectioner.
• Parry
confectionar
y Ltd. was
the first to
introduce
sweets in
India.
• Dependent
on the
confectione
ry and
beverage
market.
• Less
internation
al
experience
.
• Changes in
consumer
tastes and
preferences
Significant
opportunitie
s to emerge
into China
and Russia
where
populations
are
growing.
• Competitiv
e
pressures.
• Competitiv
e
pressures.
• Nutrition
and
healthier
lifestyles .
• Market
Expansion.
• Easy
availability
of funds.
• Less tax.
• Poor Brand
image.
• Availability
of Labour
• Lack of
competitive
• Co-
operative
society

22. AMUL
The
company is
having Indian
origin thus
creating
feeling of
oneness in
the mind of
the
customers.
It
manufactures
only milk and
milk products,
which is
purely
vegetarian
thus providing
quality
confidence in
the minds of
the
•There are
various big
players in the
chocolate
market, which
acts as major
competitors
restricting
their growth.
•Lack of
capital
invested as
compared to
other
companies.
•Improper
distribution
channel in
India.
•There is a lot
of potential for
growth and
development
as huge
population
stay in rural
market where
other
companies
are not
targeting.
•The
chocolate
market is at
growth stage
with very less
competition so
by introducing
new brand
and intensive
advertising
•The major
threat is from
other
companies
who hold the
majority share
of consumers
in Indian
market i.e.
Cadburys and
Nestle.
•There exists
no brand
loyalty in the
chocolate
market and
consumers
frequently
shift their
brands.
•New
companies’

23. COMPANY SEGMENT TARGET POSITION
CADBURY’S
People who buy
chocolates for
eating or gifting
Children and
families belonging
to lower, middle
and upper middle
class
As a sweet for
happy occasions
or auspicious
beginning
NESTLE
People looking for
premium quality,
and branded
products like
foods, dairy
products, baby
food, pet food,
confectioneries,
etc.
Urban middle and
upper middle
class
A world class
brand providing
good quality,
healthy and tasty
food and
beverages
LOTTE
People looking to
have gum and
Children and
families belonging
to lower, middle
Positioned as a
brand that children
STP

24. COMPANY TAGLINE USP COMPETITIORS
CADBURY’S
Kuch meetha ho
jaye; Your
happiness loves
Cadbury
One of the biggest
and most trusted
confectionery and
foods brand
Mars
Nestle
NESTLE
Good Food, Good
Life
The biggest health
and wellness brand
in the world, top
brand in Fortune
500 list
Kraft Foods
Parle
Unilever
LOTTE
It has brands that
children have grown
up with.
Lotus Chocolate
Nestle
Kraft Foods
Parle
ITC
AMUL Taste of India
Quality and
Cadburys
Nestle
Mars(with all its

25. CONCLUSION
• Cadbury is a very old trusted name.
• Cadbury is an organization which impacts and interacts with the consumers. Cadbury
is present in most happy occasions in the life of our consumer.
• Chocolate Ads shift focus from KIDS to YOUTH. Indian chocolate market is almost
totally depended on purchases of kids. In recent times, the chocolate majors,
Cadburys and Nestle took major initiatives to bring in grown-ups into this market.
• Nestle introduced an innovative LIQUID CHOCOLATE – CHOCO STICK at a price
tag of Rs. 2/-which was in instant hit.
• CAMPCO willingly took up the responsibility to enter the cocoa market and performed
a saviors role. As a strategy for survival in the International scene the CAMPCO
played a major role in establishing a name for Indian Cocoa, which hitherto had not
been achieved.
• However, the company does not have much visibility in the Indian market. No
advertising are seen being aired on TV…at least not on the prime channels. The
company seems to have restricted its marketing efforts in south India only.
• The space allocated for the chocolates was less when compared to the total area of
the shop. Of the space allocated for chocolates, Cadbury brands occupied more than
other brands. The chocolates category thrives on excitement. Its all about giving the
consumer a choice and taste which they enjoy.