Business environment

Amul Chocolate

WHY CHOCOLATE?

Chocolate is regularly eaten for pleasure. Cocoa or dark chocolate may positively affect the circulatory system. Other possible effects under basic research include anticancer, brain stimulator, cough preventer and ant diarrhoeal activities.

WHY INDIA?
Chocolates in India are slowly and steadily substituting the mithai or traditional Indian sweets. Due to the increasing levels of social consciousness people prefer gifting well wrapped chocolate packets rather than sweets on occasions and festivals. Initially chocolates were just limited to a few flavours caramel and milk chocolate till recent years when the introduction of dry fruits in chocolates created waves in the chocolate industry in India. Even dark chocolate which was not widely available in the Indian subcontinent till some time back has started gaining ground in the Indian chocolate market.

TARGET CUSTOMER
CHILDREN - Desire for chocolate. YOUTH - gifts PARENTS - care of own/children OLD AGE - after having lunch or dinner as sweet.

AMUL CADBURY NESSTLE

COMPETITORS

MARKETING MIX
Product
Chocolate Normal

milk drink

chocolate

Almonds nuts chocolate chocolate

Dark

PRICE Normal chocolate

Almonds and nuts Dark chocolate

15g Rs 5 40g Rs 30 35g Rs 40 50g Rs 80

Place Manufacturing units- Gujarat Cocoa- Ghana The industry setup in Gujarat because of Natural Resources plays an important role in industrial development. Gujarat is endowed with important resources like agriculture; as also animal wealth and human resources. The state government has taken several measures to explore and exploit these resources for further processing and value addition. For chocolate production we need milk and Gujarat is known for dairy development. Almost all the districts of the state are having projects for milk production. Agriculture is an important natural resource used for industrial processing. Gujarat is known for the production of cash crops. The important agricultural crops are groundnut, cotton, tobacco, sugarcane, maize, rice, wheat, pulses, vegetables and fruits like banana and mango. This will help in setup the industry in Gujarat.

Location: all over India Food stores, super market, hyper market. Major cities initially targeted Delhi, Mumbai, Bangalore, Kolkata, Chennai.

PROMOTION Various promotion tools is used

SWOT ANALYSIS
As you know SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in any other situation requiring a decision. Strengths and weaknesses are internal factors and opportunities and threats are external factors. As per as the chocolate in India is concern the SWOT analysis is as follow:

Strength: the market has grown consistently at

around 5% every year for the last four years. So it will bring bloom to the confectionery market. Good brand position and quality which is consumer favourites. strong partnerships with retailers. Developing good skills, processes and ways of working. Motivating our people and reward winning performance. Price kept that it should be in the range of every one s purchase . Stores are available in almost every market. More emphasis on sales promotion As surprise gifts Scheme cards

Weakness :There is lack of penetration in the rural

market where people tend to dismiss it as a high end product. It is mainly found in urban and semi-urban areas. 2. It has been relatively high priced brand, which is turning the price conscious customer away. 3. People avoid having their chocolate thinking about the egg ingredients. 4.new in the market.

Opportunities : (1)The chocolate market has seen

one of the greatest increases in the recent times (almost @ 30%) (2)There is a lot of potential for growth and a huge population who do not eat chocolates even today that can be converted as new users.

Threat :Many big players have major position in the

market like Cadbury nestle ,kit Kat ,lions. In peak time Public purchase generally branded chocolates and local manufacturers are ignored. Highly qualified employees in big brands. Huge investments on advertisement by other brands.

PEST ANALYSIS OF INDIA

Political

Factors India is the biggest democracy in the World. The government type is federal republic. Based on English common law; judicial review of legislative acts; accepts compulsory ICJ jurisdiction with reservations; separate personal law codes apply to Muslims, Christians, and Hindus. The political Situation in the country is more or less stable. For most of its democratic history, the federal Government of India has been led by the Indian National Congress (INC). State politics have been dominated by several national parties including the INC, the Bharatiya Janata Party (BJP), the Communist Party of India (CPI), and various regional parties. In the 2004 Indian elections, the INC won the largest number of Lok Sabha seats and formed a government with a coalition called the United Progressive Alliance (UPA), supported by various left-leaning parties and members opposed to the BJP. Overall India currently has a coalition led government and both major political parties the UPA and BJP, whichever comes in power.

 The

economic factors :- in India are improving continuously.

The GDP (Purchasing Power Parity) is estimated at 2.965 trillion U.S. dollars in the year 2007. The GDP- per Capita (PPP) was 2700 U.S. dollars as estimated in 2007. The GDP- real growth rate in 2007 was 8.7%. India has the third highest GDP in terms of purchasing power parity just ahead Japan and behind U.S. and China. Foreign direct investment rose in the fiscal year ended March 31 2007 to about $16 billion from just $5.5 billion a year earlier. There is a continuous growth in per capita income; Indias per capita income is expected to reach 1000 dollars by the end of 2007-08 from 797 dollars in 2006-07. This will lead to higher buying power in the Hands of the Indian consumers.

 Social

factor : Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. In the India, for example, population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff are living longer. It also means some firms have started to recruit older employees to tap into this growing labour pool. I t describes the characteristics of the society in which the organization exists. Literacy rate, customs, values, beliefs, lifestyle, demographic features and mobility of population are part o the social environment.

It is important for managers to notice the direction in which the society is moving and formulate progressive policies according to the changing social scenario India is the second most populous nation in the world with an approximate population of over 1.1billion people. This population is divided in the following age structure: 0-14 years 31.8%, 15-64 years 63.1% and65 years and above 5.1%. There has a (i)Mobility (ii)Income distribution (iii)Population demographics (iv)Attitude to work and leisure (v)Standard of education and skills

Technological Factor New technologies create new products and New processes. India is a big market in mobile sector here5-player

operataors and new operators launch their services soon. (i) IT Development (ii)New Materials and processes (iii)Government technology funding (iv)Speed of technology transfer (v)Software upgrades Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organisations providing the products. Today in India 3Gtechnology starts.

THANKS