Inder Bangari IPERPGDM 2010-12 TRIM 4

Market Size
Volume 30,000 tonnes Value - 2,000 crore Growth Market growing @ 18% - 20% per annum Per Capita Consumption 30 grams

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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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 worlds largest processed food and beverages manufacturer, access to parents 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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Competitors

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New Product Launch Cadbury Bournville (Dark Chocolate) and Cadbury Silk. Promotion Through television commercials and print advertisings. Cadburys marketing cost: 18% of total cost of production. Nestles 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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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 Channels of Distribution

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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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) substitute demand.

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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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Thank You.

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