Chocolate Industry in India

With special reference to Cadburys

Introduction
Chocolate is probably one of the most famous foods ever. Chocolate syrup dates back to 1500 yrs ago when liquid chocolate was extracted from Cocoa plant in Central America. In the year 1847, Fry and Sons in England first made solid chocolate, as we know it today. In 1875, Daniel Peters from Switzerland, first made milk chocolate.

Indian chocolate
Chocolate market is estimated to be around 1500 crores (ACNielson) growing at 18-20% per annum with a production volume of 30,800 tonnes. Over 70 per cent of the consumption takes place in the urban markets. Chocolate sales have risen by 15% in 2007 to reach 36000 tonnes according to one estimate.

Cadburys
In India, Cadbury began its operations in 1948 by importing chocolates. The core purpose "creating brands people love" captures the spirit of what they are trying to achieve as a business. They collaborate and work as teams to convert products into brands. Simply put, Cadbury spreads happiness! However the chocolate consumers in India are mostly concentrated in the cities as research shows that over 70% consumption of chocolate takes place in urban markets.

Competition

Shortcomings
Cadburys, as we pointed out earlier, is still missing out on a large semi-urban and rural market. Our market survey also showed that the brand loyalty towards Cadburys is not up to the mark. Indian people do not stick to one brand of chocolate therefore in case of unavailability of, say Dairy Milk, they take a replacement which can be Nestle or Amul.

Current marketing strategy

Amitabh Bacchan has, in fact, changed the perception that chocolates are only for children. He has generated new customers who are above the age of 15yrs, which definitely helped in increased sales.

Current marketing strategy

5 Star, which has a good market hold, after Dairy Milk, has captured the youth market. The advertisement shows 3 boys who disappear after having 5 Star. Tagline is Jo Khaye, Kho Jaaye.

Suggested Developments
Cost Efficiency
1. Talking about rural and semi urban markets, the company can re-brand some of its products which appear a little easy on the pocket. 2. A new brand ambassador who can appeal strongly to the youth of small towns and villages would help the company in terms of exploring new markets. 3. More of outdoor promotion activities are suggested. 4. Increased use of Traditional media like Setting up Cadburys stalls in small fairs (mela).

Suggested Developments
1. A new concept of Cadburys Jhoola (Swing) should be introduced in all public parks in towns and villages where anyone who takes more than 5 rides would get a small Cadburys Perk free. 2. Cadburys should set up small Tapris (Tea joint) where all the products of Cadburys are available in small packs (so that it doesnt feel too expensive). 3. Cadburys should sponsor the Ramlila and Krishna Janmashtami in a large number of villages all around the country and set up Cadburys sales stalls in the venue. 4. All the products sold at such places should not exceed the price limit of Rs 5.

Dhoni as Brand Ambassador

Brand Distinction
Now what do we do to ensure that our customer does not choose another brand which provides the same product and is well established ???? The answer is Loyalty Bonus. Loyalty Bonus is a completely unfamiliar concept in the Indian Chocolate Industry. The problem of unfaithful customers can be sorted out if Cadbury's launches a loyalty card (something like a credit card) ubiquitous and easy to operate.

Operating the Loyalty Card

The operation is going to be very simple. Every time the customer buys Cadburys Products, he gets certain points which can later be materialized into a Cadburys product. For eg: If you buy a Cadburys Perk for Rs 10, you get 2 points in your card. For 10 points you can buy a Cadburys product for Rs 10. This card would be first launched in the retail stores and when people get used to the concept, a swapping machine would be provided to all the mid level Kirana stores, by the company itself.

Advertisement
A poor school boy lamenting over the fact that he cannot celebrate his birthday, in school, by distributing chocolates. He thinks that only those boys who belong to good schools can afford to indulge in such celebrations. Suddenly his dad comes and surprises him by gifting a huge box of Cadburys chocolates. The boy is stunned ; he asks his dad Papa yeh kahan se laaye, Bahut Mahengi Hongi na? Dad replies Nahin Beta. Yeh Cadbury's chocolates hain. Isme band hain Khushiyaan Sab Ke Liye. The boy smiles wide, kisses his dad and rushes to school to celebrate his birthday with everyone.

Tagline Kuch tere liye Kuch mere liye

Cadburys Chocolates
Khushiyaan Sab Ke Liye

Further Improvement
The survey also pointed out that the flavors of the chocolates could be improved further to suit the Indian tongue. Flavors like Elaichi, Badam, Kesar etc could be introduced in dark chocolates to appeal to a wider Indian market.

Conclusion
The per capita consumption of chocolate in India is 300 gram compared with 1.9 kilograms in developed markets such as the United Kingdom. The Cadburys chocolates should start concentrating more and more on potential markets in India. Measures should be taken to ensure brand loyalty as well as introduction of Saving Packs.

Thank You
Presented by Ruchika Rai Prafull kr sinha Arpita Banerjee