A PROJECT REPORT

On
Chocolate Industry

By
Sonali Dhimmar
Batch (2015-18)
Enrolment No.022015099

Submitted To
Dr.C.Venkata Ramana

1
 ACKNOWLEDGEMENT

I would like to express my greatest gratitude to the people who have helped & supported me
for this project and gives their guidance to complete my work effectively and moreover on time
throughout my project.
I would like to express my sincere respect and deep gratitude to my module leader
Dr.C.Venkata Ramana who has given her valuable support cooperation and suggestion from
time to time in successfully completing this project work.
I am thank full to all the students of Auro University third year BBA, for their co-operation
during the study without whom the study could not be possible.
I am grateful to Auro University for guiding me ached with my difficulties and being my
encouragement and support thought.
Thank you.

Yours sincerely,
Sonali Dhimmar

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 ABSTRACT

A project report on Chocolate Industry in India. Which enlightens us about the size & status of
chocolate industry in India. The project gives information about the product line of the industry,
product mix, Buyers and their behaviour in chocolate industry.
The project also presents Complimentary Products and Substitute Products of chocolate
industry. The project also covers a Growth factor, Technology of Production and Distribution,
Marketing and Selling, Suppliers, Distribution Channels, swot analysis, pest analysis and
innovation in chocolate industry.
Finally, the project gives information about the ways in which Indian consumers and Chocolate
players are experimenting and innovating chocolates and giving the Indian Chocolate Industry
a new sweetness.

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Table of Contents
Introduction: ........................................................................................................................................... 6
An overview of chocolate industry in Indian:- .................................................................................... 6
Analysis ................................................................................................................................................... 7
Data Category 1: Product Lines........................................................................................................... 7
Product Mix: .................................................................................................................................... 9
Line Vulnerability: ......................................................................................................................... 11
Data Category 2: Buyers and their Behaviour................................................................................... 12
Buyers and their behaviour in chocolate industry: ....................................................................... 12
Factors that Influences buyers and their behaviour: .................................................................... 12
Data Category 3: Complimentary Products ...................................................................................... 13
Complimentary product of the chocolate industry; ..................................................................... 13
Data Category 4: Substitute Products ............................................................................................... 13
Within the category and cross category substitute products of the chocolate industry; ............ 13
Data Category 5: Growth .................................................................................................................. 14
Growth rate of chocolate industry; .............................................................................................. 14
Pattern of growth in the chocolate industry ................................................................................ 14
Growth determinants ................................................................................................................... 14
Data Category 6: Technology of Production and Distribution .......................................................... 15
Cost Structure of chocolate industry; ........................................................................................... 15
Scope to achieve Economies of scale; .......................................................................................... 15
Value added component;.............................................................................................................. 16
Logistics used in the chocolate industry; ...................................................................................... 16
Distribution activity in chocolate industry .................................................................................... 17
Data Category 7: Marketing and Selling ........................................................................................... 18
Market segmented in chocolate industry; .................................................................................... 18
Marketing practices adopted in chocolate industry; .................................................................... 18
Data Category 8: Suppliers................................................................................................................ 19
Bargaining power of suppliers in chocolate industry ................................................................... 19
Data Category 9: Distribution Channels............................................................................................ 20
Data Category 10: Innovation ........................................................................................................... 21
Different types of innovation used in chocolate industry ............................................................ 21
Data Category 11: Competitors ........................................................................................................ 22
Major competitors in chocolate industry; .................................................................................... 22
SWOT analysis of chocolate industry; ........................................................................................... 23
Pest analysis .................................................................................................................................. 24

4
Findings and Conclusion ....................................................................................................................... 25
Recommendations ................................................................................................................................ 26
References ............................................................................................................................................ 27

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 Introduction
Chocolate is one of the most popular foods of the world. It has been traded internationally for
centuries, mostly from the underdeveloped to the developed world. Consumption of chocolate
specially DARK chocolate is growing rapidly because of reported health benefits. Chocolate
has amazing complexity and levels of reported health benefits. The word chocolate entered the
English language from Spanish. Chocolate comes from Nahuatle, the language of Aztecs, from
word “xocolatl” made up from word “xococ” meaning, sour or bitter, and: atl” meaning water
or drink. Chocolate is made from beans derived from the cacao tree. These beans are very bitter,
so the cocoa solids and cocoa butter has sugar added to it.

An overview of chocolate industry in Indian:-

The chocolate industry in India as it stands today is dominated by two companies, both
multinationals. The market leader is Cadbury with a lion's share of 70 percent. Till the early
90s, Cadbury had a market share of over 80 percent, but its party was spoiled when Nestle
appeared on the scene. The Gujarat Co-operative Milk Marketing Federation (GCMMF) and
Central Recant and Cocoa Manufactures and Processors Co-operative (CAMPCO) are the other
companies operating in this segment. Competition in the segment will get keener as overseas
chocolate giants Hershey's and Mars consolidate to grab a bite of the Indian chocolate pie.
INDIA, stands nowhere even near to these countries when compared in terms of Per Capita
Chocolate Consumption. The Indian chocolate industry is extremely fragmented with a range
of products catering to a variety of consumers. We have the bars/slabs, jellies, lollipops, toffees
and sugar candies. Given India's mammoth population, it comes as a surprise that per capita
chocolate consumption in the country is dismally low - a mere 20gms per Indian. Compare this
to over 7 kgs in most developed nations. However, Indians consumed 22,000 tons of chocolate
last year and consumption is growing at 10-12 percent annually. The market size of chocolates
was estimated to be around 16,000 tones, valued around Rs.4.16 billion in 1998. Volume
growth which was over 20% pa in the 3 years preceding 1998, slowed down thereafter. Both
chocolate and sugar confectioneries have abysmally low penetration levels, in fact, even lower
than biscuits, which reach 56 per cent of the households. Market growth in the chocolate
segment has hovered between 10 to 20%. In the last five years, the category has grown by 14-
15% on an average and will expect it to continue growing at similar rate in the next five years.
Per capita consumption of chocolates in India is minuscule at 20gms in India as compared to
around 5-8 kgs and 8-10 kgs respectively in most European countries. Awareness about
chocolates is very high in urban areas at over 95%.
The chocolate industry has grown to a worldwide industry topping $50 Billion in retail sales
worldwide and continues to show healthy growth. Recently, there has been an increasing trend
towards high quality chocolates such as chocolates with high cocoa content and or chocolates
flavoured with natural flavours and rich spices.

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 Analysis
Data Category 1: Product Lines

PL1 PL2 PL3

Cadbury Nestle India Amul

Width = 3

Cadbury Nestle India Amul

Chocolates Milk And Nutrition Milk
Biscuits Beverages Cheese
Beverages Ice Cream Beverages
Candy Prepared Dishes And Cooking Ice Cream
Gums Chocolates And Confectionery Paneer
Dahi
Ghee
Mike Powder
Mithai
Chocolates

Length = 5+5+10=20

Cadbury
Chocolates Biscuits Beverages Candy
Dairy Milk Oreo Bournvita Halls
5 Star Tang Eclairs
Perk Hot Chocolate Bubbaloo
Silk Cocoa Powder
Gems

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Nestle India
Chocolates And
Milk And Nutrition Beverages Prepared Dishes And Cooking Confectionery

Nestle Everyday
Ghee Nescafe Vanilla Latte Maggi Cuppa Mahia Munch
Nestle Real Mengo Nescafe Cappuccino Meri Masala Maggi Kitkat
Nestle Neslac Nescafe Chocomocha Maggi 2 Minutes Nudels Nestle
Nestle Slim Dahi Nescafe Sunrise Maggi Ginger Garlic Milkbar
Nestle A+ Milk Nestea Lemon Maggi Masala Magic Barone
Nestle Actiplus Maggi Magic Cubes Polo
Maggi Pizza Mazza Cappuccino
Maggi Noodletz Milkybar
Maggi Pazzta Éclair Nestle
Maggi Pichku
Maggi Vegetable Atta Noodles

Amul
Milk Cheese Beverages Ice Cream Paneer
Amul Gold Gouda Cheese Flavoured Milk Creame Rich Malai Paneer
Slim Trim Milk Cheese Spread Kool Cafe Frozen Yoghurt Fresh Paneer
Chai Maza Pizza Mozzarella Kool Koko Ice Creams
Shakti Processed Cheese Spice Buttermilk
Diamond Emmental Cheese Lassi
Amul Taza Milk Shakes
Stamina
Energy Drink

Dahi Ghee Mikl Powder Mithai Chocolates

Masti Dahi Amul Ghee Spray Srikhand Chocolate
Probiotic Dahi Sagar Amulya Gulabjamoon Chocozoo
Skimmed Milk
Flaavyo Yellow (Cow) Ghee Powder Basundi Chocolate Syrup
Tea/Coffee
Brown Whitener Avsarladoo Wafer Chocolate
Assorted Chocolate
Cooking Chocolate

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Product Mix:

Width = 3
Length = 5+5+10=20
Depth = 13+31+44=88
Consistency =
PRODUCT LOW HIGH
CONSISTENCY CONSISTENCT
Chocolates Biscuits 
Chocolates Beverages 
Chocolates Candy 
Chocolates Milk 
Chocolates Prepared Dishes And 
Cooking
Chocolates Cheese 
Chocolates Ice Cream 
Chocolates Paneer 
Chocolates Dahi 
Chocolates Ghee 
Chocolates Milk Powder 
Chocolates Mithai 
Biscuits Beverages 
Biscuits Candy 
Biscuits Milk 
Biscuits Prepared Dishes And 
Cooking
Biscuits Cheese 
Biscuits Ice Cream 
Biscuits Paneer 
Biscuits Dahi 
Biscuits Ghee 
Biscuits Milk Powder 
Biscuits Mithai 
Beverages Candy 
Beverages Milk 
Beverages Prepared Dishes And 
Cooking
Beverages Cheese 
Beverages Ice Cream 
Beverages Paneer 
Beverages Dahi 
Beverages Ghee 
Beverages Milk Powder 
Beverages Mithai 
Candy Milk 
Candy Prepared Dishes And 

9
 Cooking
Candy Cheese 
Candy Ice Cream 
Candy Paneer 
Candy Dahi 
Candy Ghee 
Candy Milk Powder 
Candy Mithai 
Milk Prepared Dishes And 
Cooking
Milk Cheese 
Milk Ice Cream 
Milk Paneer 
Milk Dahi 
Milk Ghee 
Milk Milk Powder 
Milk Mithai 
Prepared Dishes And Cheese 
Cooking
Prepared Dishes And Ice Cream 
Cooking
Prepared Dishes And Paneer 
Cooking
Prepared Dishes And Dahi 
Cooking
Prepared Dishes And Ghee 
Cooking
Prepared Dishes And Milk Powder 
Cooking
Prepared Dishes And Mithai 
Cooking
Cheese Ice Cream 
Cheese Paneer 
Cheese Dahi 
Cheese Ghee 
Cheese Milk Powder 
Cheese Mithai 
Ice Cream Paneer 
Ice Cream Dahi 
Ice Cream Ghee 
Ice Cream Milk Powder 
Ice Cream Mithai 
Paneer Dahi 
Paneer Ghee 
Paneer Milk Powder 
Paneer Mithai 
Dahi Ghee 
Dahi Milk Powder 
Dahi Mithai 

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 Ghee Milk Powder 
Ghee Mithai 
Milk Powder Mithai 

Line Vulnerability:

Chocolates Dairy Milk Silk Kitkat munch

Biscuits Oreo (6)

Flavored Milk
Beverages Lassi (2) ( 4) Bournvita (2) Energy Drink (6)

Candy Eclairs (4)

Milk AmulGold (2) AMUL TAZA (2)

Maggi (2)
Prepared minutes nudels Maggi masala Maggi pichku
Dishes And (2) magic (2) (4)
Cheese Spread
Cheese (4)

Ice Cream Ice Creams different type (6)

Fresh Paneer
Paneer (2)

Dahi MastiDahi (4)

Ghee Amul Ghee (2) Yellow (cow) Ghee (4)

Mikl Powder Amulya (6)

Gulabjamoon
Mithai Srikhand (2) (6) Basundi (6)

Width=13
Length=25
Total depth=78
In chocolate industry percentage of sales or profits are derived uniformly from all products in
the line, so here is low vulnerability.

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Data Category 2: Buyers and their Behaviour

Buyers and their behaviour in chocolate industry:

Chocolate is a product which is consumed by mass and is easily available to everyone. The key
point is that in chocolate market consumers look for a variety of products and they demand it
according to their own taste. Consumers are sensitive towards many factors of chocolates like
shape of the chocolate, its consistency in the mouth, touch, its melting etc. There are many
religions in the world and some restricts some products in the society. But good thing for
chocolate is that it is consumed by the people of all the religions. Everybody loves sweet; it
does not matter from which ethnic background he is. Also many festivals in different religions
influence the buying behavior of the chocolate. For example: Christmas for Christians; Diwali,
Holi, Rakshabandhan for Hindus; Eid for Muslims and so on. In every occasion chocolates are
consumed. Psychological factors also influence the behavior of the consumers of chocolates.
These psychological factors mainly involve motivation, learning, attitude, health etc. Health is
another psychological factor which affects the behavior of the consumer as it is said that excess
chocolates are not good for health.

Factors that Influences buyers and their behaviour:

As the chocolate is not included in the necessary product and it provides delight only, so it
depends upon person to person that how much they want to spend on their delightment. Buyers
decision depends upon the income, quality and necessity of buying the product.
Product choice: - chocolate is the matter of taste and enjoyment, so consumers are willing to
choose from a wide range of variety available.
Brand choice: - children are the major users of this product so parents are more and more
concern with the brand, because brand will provide the quality satisfaction.
Dealer choice: - generally consumers go to such dealers which are reliable and consumers can
be sure that they will get the right production the right price.
Purchase timing: - (as one of the product says- kuch mittha ho Jae) it can be any time when a
user wants to enjoy. Mainly festivals and other occasions like birthday etc.
Purchase amount: again it depends upon users capacity and willingness that how much they
want to spend on enjoyment through such products.

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Data Category 3: Complimentary Products

Complimentary product of the chocolate industry;

complimentary product

1. sugar

2. milk

3. cocoa

Data Category 4: Substitute Products

Within the category and cross category substitute products of the chocolate
industry;

Substitute Product

Within category Cross category

1 Mithai Soft Drinks
2 Sugar Candies Snacks
3 Beverages
4 Chips
5 Fruits
6 Candy
7 Ice Cream
8 Popcorn

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Data Category 5: Growth

Growth rate of chocolate industry;

The Indian chocolate market has been witnessing tremendous growth in terms of value as well
as volume. The Indian chocolate industry has registered a growth of 15% per annum in recent
years and is projected to grow even at a higher rate in future. The rising per capita income and
gifting culture in the country has spruced up the Indian chocolate industry.
The dark chocolates are expected to account for the larger market share when compared to milk
and white chocolates in the coming years.
That revenue of $21.1 billion in 2014 was a 2.9% increase over 2013. The greatest growth was
in premium products, which expanded 11%, and in dark chocolate products, which grew 8%.
Sales are expected to grow another 6% by 2017 to $22.4 billion.
It is forecasted that Indian chocolate market will reach USD 3.2 billion revenues by 2018 due
to increasing gifting culture in the country and increase in the income bracket which will fuel
the demand for chocolate products in India.

Pattern of growth in the chocolate industry;

The pattern of growth is seasonal in chocolate industry, like in festivals demand are chocolate
is more.
Seasonal candy is a major driver of the confectionary industry, and in 2014 accounted for over
21% of sales – over $7 billion. This includes holiday specific packaging, shapes, colors and
even flavours tailored to occasion – religious, cultural and perhaps especially the Hallmark
holidays. Year over year growth in this seasonal category was a healthy 8.5%.

Growth determinants:

Internal factors External factors

Strong tradition of gifting sweets Government initiatives

Innovation through brand & product

variants Efficient Availability of raw material

Low penetration Income

Health trends Price at retail level-increasing

Highly seasonal for confectionary
(holidays)

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Data Category 6: Technology of Production and Distribution

Cost Structure of chocolate industry;

Retail &
Marketing
Farmer 3% supermarket
10%
43%

Local cocoa Production

buyers cost
5% 20%

Transport,
Grinder
storage and
processor
trade
7%
12%

Scope to achieve Economies of scale;

Yes, in chocolate industry there is a scope to achieve economies of scale and Efficiency with
mass production because chocolate industry have several number of product line which is
somehow similar to each other. Like in same raw material company can create a different
flavours of chocolates. Larger companies produced a variety but Small companies may not be
able to achieve this.

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Value added component;

Component

1. Strong distribution channel

2. Skilled Labour

3. Educated Staff

4. Large number of Offerings

5. Easy to approach

6. Favourable weather conditions (Summer most of the time)

7. People love to enjoy eating chocolates

8. Convenient availability

9. Mass Marketing

10. Quality

11. Service

12 High R & D

Logistics used in the chocolate industry;

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Logistics process:
Logistic in collection= collect the raw material
Logistics in coordination of= storing, processing, distributing
Suppliers logistics= calculation of the purchase price

Distribution activity in chocolate industry;

This picture shows the distribution activity in chocolate industry.

Labor is needed for the industry= both skilled and unskilled labour are needed for the chocolate
industry.

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Data Category 7: Marketing and Selling

Market segmented in chocolate industry;

Market segmented
Geographical Demographic Psychographic Behavioural
Continent Age Lifestyle Occupation
Country Gender Social class Degree of loyalty
Country region Family size Interest Benefit sought
City Occupation Personal values Usage
Density Income Attitudes Buyers readiness stage
Climate Education User status
Population Religion
Subway station Race
City area Nationality

Marketing practices adopted in chocolate industry;

Various media platforms are used by chocolate industry to increase awareness in the market

broadcast media
(sponoring
television show)

outdoor media
non-broadecast
(billborads,hoardin
media (cinemas)
gs)

print media
internet and social
(newspapers,
media
magazines)

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Then,
Increase the awareness about Hercules among the target market segments by 30% per annum.
Decrease the potential customers resistance by 25 percent per annum.
Position the brand image of Hercules as premium & luxury chocolate and stand differentiated
among the competitors by providing customized chocolates for consumers.
Strengthening of non-priced competitiveness, business restructuring by rebranding the image
of lotus chocolates company and Hercules brand.
Demand creation, sustainment and enhancement of quality advantage and healthy products.
Increase the sales of Hercules by 5-6 per cent per quarterly.
Sales promotion sceames are used to attract new customers, like seasonal offeres, festival
offeres.

Data Category 8: Suppliers

Bargaining power of suppliers in chocolate industry;

The bargaining power of suppliers is a competitive force that can diminish a firm’s profitability
by raising prices or reducing the quality of the supplier’s product. In many instances, the
profitability is reduced such that the firm cannot recover from raw material expenses. The six
conditions that increase a supplier’s power are a concentrated supplier group, no substitute
products available, industry is an unimportant customer to the supplier, supplier’s product is
essential to the industry’s business, supplier’s product is differentiated, and justifiable threat of
forward integration .If the industry’s suppliers are concentrated, then the supplier has more
bargaining power over the industry. The suppliers of the chocolate and cocoa industry have
significant bargaining power over the industry because of the limited number of these suppliers.
Because the cacao tree is grown in areas that have a tropical climate, many players in the
industry are forced to import the product. Tropical climates are often at risk for natural
disasters, such as hurricanes, which can dramatically reduce the number of suppliers. In
addition, civil unrest in areas that grow the cacao tree can have an adverse effect on the amount
of suppliers to the industry. Bargaining power of the industry’s suppliers is increased because
of the limited number of these suppliers. In addition to concentrated suppliers, the supplier
groups’ bargaining power is increased if there are no substitute products that they must contend
with in the market. Because the cocoa bean is a required ingredient in chocolate and cocoa
industry, the suppliers do not have any substitute products for which they must compete. This
lack of substitutes increases the bargaining power of the chocolate and cocoa industry’s
suppliers. The bargaining power of a supplier is increased if the industry is not an important
customer of that supplier. The chocolate and cocoa industry is an extremely important customer
of its supplier group. The cocoa bean is an important export of the countries that produce the
cocoa bean. The bargaining power of the suppliers is reduced because of the importance of the
chocolate and cocoa industry as a customer. Another condition that enhances the bargaining
power of the supplier group is the dependency of the industry’s product on the suppliers’

19
product. The chocolate and cocoa industry relies on suppliers to deliver high-quality products
that meet food regulations and consumer taste tests. If the suppliers’ products not available or
does not meet the quality expected, the industry will suffer greatly. This dependency on the
suppliers’ product increases the suppliers’ bargaining power. The bargaining power of a
supplier group is increased if the product they supply is differentiated or has switching costs.
If differentiation or switching costs exist, then the industry has limited ability to increase the
competition among the suppliers. The chocolate and cocoa industry has moderate
differentiation among their suppliers. It is important for the suppliers. product to be a certain
quality or grade; however, if the product meets grade guidelines, it is relatively
undifferentiated. This is true of all suppliers of the industry including cocoa bean, milk, and
sugar suppliers. Additionally, the bargaining power of a supplier is increased if the supplier
can threaten to forward integrate. If the supplier can become a producer of chocolate and cocoa
products, then it can increase its bargaining power. Suppliers to the chocolate and cocoa
industry do not pose a reasonable threat of forward integration. As previously stated, the threat
of entrants into the industry is low. The suppliers would have to spend a significant amount of
money in research and development, capital requirements, and obtaining customer contacts.
They would also have to overcome strong industry leaders who have significant brand
identification and customer loyalty. The lack of threat of forward integration decreases the
bargaining power of suppliers. The bargaining power of suppliers is decreased because the
industry is an important customer of the supplier group and the supplier does not pose a threat
of forward integration. But the bargaining power of suppliers is moderate to high because the
supplier group is concentrated; there are no substitute products, and the importance of the
supplier’s product to the industry.

Data Category 9: Distribution Channels

The distribution component refers to marketing mix, which emphasize on the decisions and
actions contain in making products available to customers when and where they want to
purchase. Chocolate industry in order to operate the products through retail stores around
world, and developed a wide distribution through comprehensive retail and wholesale channels.
Chocolates industry have two kinds of distribution channels that depend on sold in large or
small retailers. For larger retailers such as Woolworth and Coles, the frequent choice of
distribution is that may deliver products directly from producer to retailers, and then offer to

20
customers. On the other hand, small retail like seven-eleven and some corner stores may use a
long-standing channel that deliver products through the producer to a wholesales and then
deliver to retailer, and provide to customers at last.
Chocolates offer through intensive distribution strategy. Consumers purchase it based on
convenience with little decision making process, they normally purchasing at supermarkets and
convenience stores. It also provides online sales service but only in Swiss online shop, which
delivers all over the world. A new world network will become comprehensive, and online
service will available.
To build broad online shops and offering can directly provide to customers. Other advantage
is that, creating sales outlet, which can reduce sales price in order to gain the potential
customers.

Data Category 10: Innovation

Different types of innovation used in chocolate industry;

“The global chocolate market has seen considerable innovation in flavor and texture, including
flavors such as beer and yogurt capturing consumer attention,” Ms Mogelonsky said.
Chocolate confectionery innovation within the India has been focused on seasonal products.
Some 42 per cent of new product launches were classified as seasonal – largely comprised of
new takes on familiar products, such as a change in shape or packaging. A look at flavor activity
among chocolate confectionery launches finds that plain/unflavored varieties are seeing steep
declines, while products featuring nuts and nut flavors are on the increase.
“In addition to enhancing the flavor of chocolate confectionery with added ingredients, there
has also been newfound focus on chocolate itself, with both white and dark chocolate gaining
in popularity,” Ms Mogelonsky said. “New product development continues to be imaginative,
with more exploration of flavors and textures outside the sweet flavor tradition. However,
efforts to innovate will continue to run up against a consumer base that tends to be more
conservative in product choice,
Innovation like in chocolate industry are; Beyond orange, Dessert as an ingredient, Vegetables
in chocolate, Unusual fruits, Going nuts, Not just for breakfast: Cereals moving into chocolate,
A greater variety of “fine” and “rare” cocoa, Florals, White chocolate, Building and layering
flavors.

Innovation achieved through economies of scale;

Yes Innovation achieved through economies of scale because more you increase your scale
volume, your cost is low.

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Data Category 11: Competitors

Major competitors in chocolate industry;

Sr.no Name of the chocolate companies in india

1. Cadbury
2. Nestle
3. Ferrero India
4. Amul
5. Mars India International
6. Campco
7. ChocOn India
8. Parle

The major competitor of chocolates industry are soft drinks, biscuits, sugar
confectionary, ice creams and salted snacks.

Major chocolate competitors companies in India

Soft Drinks Biscuits Ice Creams Salted Snacks
Pepsi Parle Kwality Wall's Leher Namkeens
Coca-Cola Britannia Mother Dairy Cheetos
Sprite Priya Gold Vadilal Leher Kurkure
Thums Up Anmol Amul Potato Rackets
Limca Horlicks Nirulas Nutyumz

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SWOT analysis of chocolate industry;

Strengths
High and traditional Swiss brand Weaknesses
with high recognition Fatty products
High market share Narrow of promotion strategies
Broad manufacture places with Lack of sale channel
high reputation
Weakness of packaging attraction
Premium quality
Strange flavor such as salt or chili
Highly content of Cocoa may unpopular
Various choice on flavor
Recyclable packaging

SWOT

Opportunities
Traditional and popularity Swiss
brand Threats
Convenient for reserve and share Price competitive as major
competitors may take adjustment
Richness of cocoa supply
of producer process in order to
Swiss tennis champion Roger reduce the price.
Federer as a global ambassador
Large number of loyal consumers

23
Pest analysis

The social, political and legal environment in chocolate industry

Political
Political stability of the country indicates towards the positive or negative affect on the Trade
of a particular product.
The change of government from the Labour party to the Conservative/Liberal Democrat is
bound to influence chocolate industry operations. The imposition of taxes is yet another
political factor that will determine how Cadbury manages its investment and payment to
shareholders.
Economic
Owing to a reduction in disposable income of customers and other stakeholders
Social
Being run by a Quaker family, their opposition to alcohol served as the basis of running a
business that sold tea, coffee, cocoa, and liquid chocolate. But while chocolate and other
products sold by the company are socially acceptable worldwide,
Many nutritionists recommend people to reduce their consumption of chocolate and candy,
which is likely to affect sales in the future.
Technology
Technology has changed production and packing process over the years, starting with the
introduction of new brew machines to blend coffee and cocoa gains. Recent moves in this
regard include the use of pathogen testing systems and filing patents for heat-resistant
chocolate.

24
 Findings and Conclusion
Today, chocolate is usually a highly processed blend of chocolate liquor, cocoa butter, cocoa
powder, sugar, and milk- fat different from its origins. Size of the chocolate market in India is
about 4000 tonnes and is valued at rupees 6500 million. Cadbury India has the biggest market
share at 70% while nestle is the second largest at 20%.
Traditionally, this is how products are positioned within the impulse category. First come soft
drinks, which is a major market. They are followed by biscuits, sugar confectionary, ice creams
and salted snacks. In the past, chocolate companies used to consider only the different brand in
the chocolate market as their competitors.
That was a mistake. Chocolate products are fighting for a share of the consumers’ pocket. They
are facing competition not only from chocolate but also other impulse product such as soft
drinks, biscuits, salted snacks and ice-cream. To maintain the share of the chocolate market in
the impulse market, the chocolate industry has to make sure that it grows in line with the
impulse market or grows faster than that since the share of chocolate in the impulse category
is just six percent, the opportunity are plenty here.
Despite the fact that Indians have strong affinity for sweets, the size of domestic confectionery
market is small on account of traditional consumers taste and habits. The chocolate market in
India is a niche penetrated largely in urban areas.

25
 Recommendations
The Indian Chocolate Industry is a unique mix with extreme consumption patterns, attitudes,
beliefs, income level and spending. At one hand, we have designer chocolates that are
consumed when priced at even Rs 2500/kg while there are places in India where people have
never even tasted chocolates once. Understanding the consumer demands and maintaining the
quality will be essential. Companies will have to keep themselves abreast with the
developments in other parts of the world.
PRICING is the key for companies to make their product reach consumers’ pockets. Right
pricing will make or break the product SUCCESS. Economical distribution of the products will
also be equally important.
The companies’ strategies should focus on driving sales through a right product mix, efficient
materials procurement, reduced wastages, increased factory efficiencies and improved supply
chain management.
There’s an immense scope for growth of chocolate industry in India - geographically as well
as in the product offering.
The Indian Chocolate Industry is destined to grow and will do so in the future.

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 References
http://www.listdelhi.com/best-of-india/best-chocolate-companies-india/
https://www.scribd.com/doc/29844717/Project-on-Consumer-Buying-Behaviour-of-
Chocalate-Industry
http://myassignmenthelp.info/assignments/consumer-behaviour-essay-on-marketing-
strategies-hershey-chocolate-company/
https://www.techsciresearch.com/report/india-chocolate-market-forecast-and-opportunities-
2018/307.html
https://www.franchisehelp.com/industry-reports/chocolate-industry-report/
http://www.indianmirror.com/indian-industries/2016/chocolate-2016.html
https://www.ukessays.com/essays/marketing/strategic-marketing-management-of-nestle-
analysis-marketing-essay.php
http://slideplayer.com/slide/4879298/
http://www.bbamantra.com/project/segmentationtargeting-and-positioning-of-amul/
http://www.mintel.com/blog/food-market-news/chocolate-innovation-the-top-10-trends-
driving-the-global-chocolate-confectionery-market
http://www.ausfoodnews.com.au/2015/04/15/chocolate-innovation-takes-off-globally-
despite-sales-growth-slow-down.html
http://pestleanalysis.com/pest-analysis-cadbury/
https://newyorkessays.com/essay-chocolate-industry/

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