Escolar Documentos
Profissional Documentos
Cultura Documentos
To understand the
1. Overall market size and growth trends & future
projections.
2. Main market segments, size and consumer behavior
trends.
3. Major macro and global environmental influences on
the market and the critical success factors.
4. Analyze the industry with the help of porters 5 forces
model.
5. Main market competitors, market share, strength &
weaknesses.
6. Main channels of distribution, strengths &
weaknesses.
MARKET
TRENDS
COMPETITION
......
DRIVERS &
CHALLENGES
..............
Indian chocolate market is growing at a compounded
annual growth rate (CAGR) of about 25%
(Commodityonline,2013).
India is considered to be loaded with great potential for
growth of chocolates.
Increased convenience of premium chocolates and budding
taste for dark chocolates aided with higher purchasing
power will lead to further development of the market.
..............
CHALLENGES
DRIVERS
Increase in disposable income. Rise in cocoa prices.
Chocolate gifting prevailing.
High entry barriers.
Attractive pricing.
High excise and
Huge Potential as low per
import duties.
capita consumption.
..............
Premium chocolates.
Gift packaging schemes.
Dark Chocolates.
Entry of retailers and
confectioners.
..............
CADBURY
NESTLE
AMUL
MARS
..............
Source: Commodityonline
DRIVERS
Tradition of gifting chocolates
CHALLENGES
Attractive pricing
(Marketresearch.com)
(Marketresearch.com)
Volume Produced
Cadbury (India)
2200
2272
2791
5627
655.803
6460
12428
15480
14095
12808
16800
(Mintel, Pitchonnet)
(Mintel, 2013)
Sales of
chocolate have
increased from
$418 million in
2008 to $857
million in 2011
Per capita
consumption
increases 200840 gms to 120
gms in 2013.
Seasonal
launches
increased from
2% in 2008 to
7% in 2011
Premium
chocolates saw
launches grow
from 4% in 2008
to 6% in 2011
Seasonal &
boxed assorted
chocolates have
experienced the
fastest growth &
sales are
expected to
expand 13%
between 2010 &
2015
(Mintel, 2013)
(Mintel,2012)
(Franchisehelp, 2013)
India-13.8%
Brazil-8.1%
Turkey-6.4%
China -5.8%
Colombia-5.2%
Russia -1.3%
South Africa0.7%
(Euromonitor, International Confectionery News 2013)
Chocolate prices
are estimated
to rise 9.84% to
Rs.574.70 per
kg in 2013 from
an average
price of
Rs.523.20 per
kg in 2012.
(Mintel, Livemint)
The Associated
Chambers of
Commerce and
Industry of India
(ASSOCHAM)
estimated
consumption of
chocolate to
cross Rs.7500
crore by 2015
(Mintel, Livemint)
(Mintel, Livemint)
Chocolate sales
estimated at
Rs.6007 crore in
2013
Sales are
expected to rise
to 22.24% in
2013
In US $ BILLION
BRAZIL
18.5
RUSSIA
9.3
CHINA
2.6
INDIA
2.3
TURKEY
1.8
SOUTH AFRICA
712 Mn
COLOMBIA
324Mn
(Euromonitor, Confectionery News2013)
White Chocolate
Made from the same ingredients as
milk chocolate but without the non
fat cocoa solids. As per FDA 2001 it
must contain at least 20% cocoa
butter and 14% total milk
ingredients.
Milk
Chocolate
Combination of
atleast 10%
chocolate liquor
(not alcohol),
cocoa butter, sugar
and milk or
creamat
(12%min.)
Unsweetened
Chocolate or Baking
Chocolate
This chocolate can be sold as
unsweetened chocolate or
baking chocolate or used to
make other chocolate types.
Sweet Chocolate
A combination of chocolate liquor,
cocoa butter and sugar, but contains
at least 15% chocolate liquor.
Dark chocolate
A combination of chocolate
liquor, cocoa butter and sugar,
but contains at least 35%
chocolate liquor.
5.6
5.5
5.3
5.2
5
4.8
4.7
2.1
1.6
1.5
1.5
1
0.7
0.1
0.12
30-40 years
29%
26-30 years
19%
13-19 years
20-25 years
13-19 years
29%
20-25 years
23%
26-30 years
30-40 years
HUNGER
14
REJUVENTAION
Bar Chocolate
Any Chocolate
INDULGENCE
CELEBRATION
HEALTH
ROMANCE
10
11
Any Snack
SHARING
14
12
19
20
23
23
32
23
24
19
23
24
20
24
23
RELAXATION
40 gm
(2008)
Traditional
Mithai
Consumer
Preference
Chocolate
70% Urban
Consumption
30% Rural
120 gm
(2012)
Premium chocolates increasing due to growing preference for better quality chocolates.
Consumption of premium chocolates by rural consumers also witnessed a sharp rise in
2012.(Euromonitor, 2013)
Interestingly, small pack sizes experienced a rapid increase in sales across rural areas
and tier III cities owing to the affordability attached to it. In line with the preference for
small pack sizes, volume sales of mini chocolates launched by Mars also started to
emerge in 2012.(Euromonitor, 2013)
IMPULSE SALES
Source: Times of India, 9th Oct 2012
Domestic:
Factors affecting prices of chocolate:
Cost of milk production grown by an annual
pace of 14% in 2012 (Credit Suisse, Oct
2013)
Rise in fodder prices by 23% as compared
to last year in 2012 : (Credit Suisse, Oct
2013)
Rural wage rate has risen by more than
15% (Credit Suisse, Oct 2013)
Evidence of why importers are hesitant to
come to Indian markets: 200 tons of
imported chocolates are rotting in
warehouses across airports & ports due to
Indian regulatory issues of labelling norms
(Economic Times, Nov 13)
International:
India imports more than half of its
requirement of cocoa every year with
the demands increasing at 8% per
annum (Indian Express, 2012)
Rise in global cocoa prices by 9.84%
in 2013 due to production shrink in
West Africa : (Livemint, 2013) is
going to hamper Indian chocolate
market in India.
Maximizing the
distribution
channels has
enabled touch
points at almost
every available
retail venue
Adaptation to different
taste buds makes a
chocolate available for
every palette
Increasing
demand for
sugar-free and
diet chocolates
among
consumers
Price wars.
Advertising battles
Difference in products.
Need for large capital requirements.
Health-consciousness and calorie counting products.
Product innovation can result in new entries.
Caramel candies.
Amul
8%
Nestle
20%
Sales
Cadbury
56%
Mars
16%
Cadbury
Mars
Nestle
Source: Euromonitor
Amul
Source: Marketingprofs
CADBURY WEAKNESSES
CADBURY STRENGHTS
5. Strong advertising.
Source: UNC
NESTL WEAKNESSES
NESTL STRENGHTS
2. Products available at
affordable price.
3. Successful advertising
and marketing campaigns.
AMUL WEAKNESS
AMUL STRENGTHS
1. Promotions is weak.
2. M&Ms is the number one selling
candy in the chocolate market;
however this product steals most of
the promotion and advertising
money.
3. Milky Way has a low sales
percentage of Mars domestic market
share.
4. Because of constantly changing
campaigns, people are not aware of
Milky Ways positioning in the
market.
Source: UNC
Source: Euromonitor
MARS WEAKNESSES
MARS STRENGHTS
AMUL
MARS
NESTLE
CADBURY
.
(Cadbury CSR,2013)
$ 4 million to non-profit
organizations for humanity
development
(Cadbury CSR,2013)
Manufacturer
Wholesaler
Wholesaler
Company Owned
Or Stockist
Grocery/Kirana stores
Airport shops,
Shopping Malls
Speciality Shops
Retailers:
Gift shops
Book shops
Railway Stations Bus Stands
Chemist
Super markets
Tobacco Kiosk
WEAKNESSES
STRENGTHS
Retail sector is changing and the organized
sector is gaining ground with the emergence of
supermarkets and hypermarkets in metropolitan
India.
Once shipments are cleared by ports, it
penetrates into the market very easily and
reaches the consumers effortlessly.
Small retail shops have a presence almost
everywhere which helps reaching the rural
customers.
(Market for Confectionary Products in India
Report, 2005)
Raw Materials
Manufacturing
Packaging
Transport &
Distribution
Promoting
Sustainable
Consumption
Wastes &
Recovery
Agricultural raw
materials such
as cocoa are
sourced from
suppliers into
safe and valueadded food
products for
consumers.
Manufacturing
encompasses all
the processes that
are necessary to
transform
perishable raw
materials into
safe, shelf-stable,
value-added food
products for
consumers.
Packaging is
essential to
reducing food
waste by
protecting
products during
transportation
and storage.
Products are
delivered via a
network of road,
rail and sea to an
increasingly
urbanised
population.
The desire to
create a more
sustainable world
requires
understanding,
collaboration and
action at many
levels by
governments,
companies, brands
and consumers.
Waste has
consequence
s beyond the
loss of
valuable
products.
High
environmental
standards have
to be met by
suppliers and
cocoa farmers.
Efficient
technologies and
applying best
practices are used
to improve
environmental
impacts.
It is also vital
for food safety,
freshness and
providing
consumers with
nutritional
information and
portion
guidance at the
point of
purchase.
On a daily basis,
large
consignments are
transported to
customers from
factories and
distribution
centres, delivering
the products in
highest quality and
on time from the
factory to the
consumer.
Source: Nestle.com
If waste
increase,
then scarce
resources
such as
water, energy
and land
generate
additional
costs for
treatment.
Reverse
logistics.
Amul,CSR :
http://www.amuldairy.com/index.php/csr-initiatives/tribhuvandas-foundation
BBC UK:
http://www.news.bbc.co.uk/2/hi/uk_news/England/6900467.stm
Barry Callebaut:
http://www.barry-callebaut.com/cms/download.dhtml?url=/cms_files/N-9004enen_FileFile_35.pdf,filename=BC_Journal%202012_E_Chocolate%20consumption%20
and%20taste%20preferences.pdf&ei=BICfUtGnIoOTrgeDtYDgDg&usg=AFQjCNHgNe1fK
vFfDZeXAODwCPPDiMobzw&bvm=bv.57155469,d.ZGU
Business Standard:
http://www.business-standard.com/article/companies/amul-revamps-chocolate-strategy107091101125_1.html
Business Today: http://businesstoday.intoday.in/story/cadbury-india-plantinvestment/1/197592.html
Business Standard:
http://www.business-standard.com/article/companies/us-based-mars-eyes-gujarat-forchocolate-plant-113061801032_1.html#
Cadbury India:
http://www.cadburyindia.com/in/en/about/pages/ourbusinessinindia.aspx
Commodity Online: http://www.commodityonline.com/news/india-sweet-toothchocolates-the-new-festive-favourite-56742-3-56743.html
Confectionery News:
http://www.confectionerynews.com/Markets/Mondelez-chocolate-chief-pinpointsmarkets-beyond-BRIC
CNN Money:
http://www.money.cnn.com/search/index.html
CNN Money:
http://www.money.cnn.com/magazines/fortune/global500/2013/snapshots/6126.html
Euromonitor:
http://www.euromonitor.com/chocolate-confectionery-in-india/report
Economic Times: http://articles.economictimes.indiatimes.com/2013-0801/news/40963259_1_chocolate-consumption-chocolate-market-indian-consumers
Economic Times: http://articles.economictimes.indiatimes.com/2013-1102/news/43611397_1_fssai-indian-food-new-labelling-norms
Franchise Help:
http://www.franchisehelp.com/industry-reports/chocolate-industry-report
Food Confectionary:
http://69.17.111.188/site/c4/w116/downloads/India.pdf
Indian Express:
http://www.indianexpress.com/news/indians-get-sweet-on-chocolates/972675/0
ICCO:
http://www.icco.org/about-cocoa/chocolate-industry.html
India Infoline: http://www.indiainfoline.com/Markets/Company/Fundamentals/ProfitLoss/Cadbury-India-Ltd/500793
KPMG:
http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/Documents/PDF/M
arket%20Sector/Retail_and_Consumer_Goods/chocolate-of-tomorrow.pdf
Nestle:
http://www.nestle.com/csv/environmental-sustainability/highlights-challenges
Nestle M&A:
http://www.nestle.com/investors/mergers-and-aquisitions
Pitch on Net: http://pitchonnet.com/blog/2012/11/08/chocolate-consumption-doublesin-india-since-2008/
Times Infomedia:
http://issuu.com/timesinfomedia/docs/beverages___food_august_issue
Times of India: http://articles.timesofindia.indiatimes.com/2012-10-09/indiabusiness/34342337_1_chocolates-traditional-sweets-d-s-rawat
Trade Forum:
http://www.tradeforum.org/Cadbury-Goes-Fairtrade/
UNC:
http://www.unc.edu/~refisher/swot.html