Comparative Analysis of Chocolate Industry

Study of Cadbury, Nestle, Amul, Godrej Hersheys.

Eva Sharma Class :-PGDM B Roll No :- 47 Institute :- SIMSR Submitted to :- Dr. Bhagyalaxmi

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INDEX
1. INTRODUCTION TO CHOCOLATES..Pg.3 2. MARKET SHARE OF LEADING CHOCOLATE BRANDS IN INDIA..Pg.4 3. CADBURY INDIA..Pg.4 4. COMPETITIVE ADVANTAGE OF CADBURY..Pg.11 5. NESTLE INDIA......Pg.11 6. COMPETITIVE ADVANTAGE OF NESTLE..Pg.14 7. AMUL.Pg.14 8. COMPETITIVE ADVANTAGE OF AMUL.Pg.19 9. GODREJ HERSHEYS..Pg.20 10. CONCLUSION...Pg.21 11. BIBLIOGRAPHY...Pg.22

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INTRODUCTION TO CHOCOLATES
The history of chocolate began in Mesoamerica. Chocolate played a very important role in the religious events of civilizations of Maya and Aztec. Cocoa seeds were used by the priests and were offered to the Gods. Chocolate drinks were served during the sacred ceremonies. The preparation of chocolate was simpler back then and chocolate was called as Bitter Water. For hundreds of years, the chocolate making process was the same until the industrial revolution. The taste of the seeds of the cacao is extremely bitter. Thus, it has to be fermented so as to bring out the flavor. After the process of fermentation, the beans are dried, cleaned, and roasted, and the shell is removed in order to produce cacao nibs. After this, cocoa mass is made be grinding the nibs. Cocoa is pure chocolate in rough form. This mass is liquefied then molded with or without other ingredients; thus, it is called as chocolate liquor. There are two components into which the liquor can be processed, one is cocoa solids, and the other is cocoa butter. These two components are contained within unsweetened baking chocolate (bitter chocolate) in varying proportions. The combination of cocoa solids, cocoa butter, other fat and sugar, makes almost all the chocolate that we consume today. Additional content of milk powder or condensed milk is what makes the sweet milk chocolate. Cocoa butter, sugar, and milk but no cocoa solids are the ingredients of white chocolate. Chocolate has become one of the most popular food types and flavors in the world. Gifts of chocolate molded into different shapes have become traditional on certain holidays: chocolate bunnies and eggs are popular on Easter, chocolate coins on Hanukkah, Santa Claus and other holiday symbols on Christmas, and chocolate hearts or chocolate in heart-shaped boxes on Valentine's Day. Chocolate is also used in cold and hot beverages, to produce chocolate milk and hot chocolate.

MARKET SHARE OF LEADING CHOCOLATE BRANDS IN INDIA

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Market Share of Leading Chocolate Brands in India

2% 6% 15% Cadbury Nestle Amul Godrej Hershey's 77%

CADBURY, INDIA
Kraft Foods owns Cadbury Inida Ltd. Cadbury India operates in five categories Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate Confectionery business, Cadbury has maintained its undeniable management over all the years. Cadbury Dairy Milk, , Halls Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, clairs, Bubbaloo, Tang and Oreo are the ket brands of Cabury in India. REGIONAL OFFICES Mumbai Chennai Delhi Kolkata

FACTORIES IN INDIA Thane

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Pune Himachal Pradesh Gwalior CADBURY DAIRY MILK

Cadbury Dairy Milk depicts different set of values. The combined or shared values such as togetherness of families and individual values like enjoyment. It stands for goodness. A moment of pure magic! The Indian market experienced the introduction of Dairy Milk in the year 1948, and since then for regulars across India, the expression Cadbury has become identical with chocolate. It is the combination of the best tasting delicious chocolate and the memorable communication that makes Cadbury Dairy Milk sit at the very top of the Indian chocolate market. ADVERTISING This brand used to be kids favourite during the early times. So, for older age groups to give more attention to it, the brand re-positioned itself during the year 1994 via the classic Real Taste of Life. It was due to this campaign that Cadbury Dairy Milk was positioned as the chocolate that awakened the little child in every grown up. Thus, both teenagers and adults were soon hooked on to this bar of pure magic and derived pleasure out of it. The Rs. 5 pack was launched in 1998 after which Dairy milk became more affordable and hence more accessible for heaps. The consequent positioning of Khaane Waalon ko khaane ka Bahana Chhayie converted its consumption into a joyful, social occasion.

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Cadbury launched the `Kuch Meetha Ho Jaaye campaign in the year 2004, seeking to increase its intake by making it tantamount with the traditional sweets. The face and voice of the brand, was the legendary Amitabh Bachhan, due to whom, the campaign became a huge success. People could relate to the commercials. The Pappu pass ho gya commercial is unforgettable and the country cheered on as Pappu fell in love in the Pappu Love Test commercial. Then came Miss Palampur and the country celebrated the beauty pageant with a difference. The `Kenya commercial was aired in 2008 and celebrated the spirit of cricket and true sportsmanship. Another commercial called the `Pay Day commercial was aired in the year 2009. In the year 2010, with `Shubh Aarambh, Cadbury took the Dairy Milk journey a step further into the hearts of its million lovers. With the current campaign Khaane Ke Baad Meethe Mein Kuch Meetha Ho Jaaye, the aim is to introduce the thought of having a Dairy Milk as a post dinner meetha i.e. dessert.

CADBURY DAIRY MILK SHOTS

There was a large number of Indians who still chose sweets over chocolates. In order to woo those people, and to become accessible to the majority of rural population, Cadbury launched Dairy Milk Shots in the year 2008. It was an innovative format of sugar covered chocolate made to resist the rural temperature fluctuations and was positioned as chocolate laddu.

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CADBURY DAIRY MILK SILK

Although Dairy Milk has won over the hearts of Indian customers over the last siz decades, but there was room for a more premium entrant in the category. Thus came in Dairy Milk Silk in January 2010 which proved the thinking of most dairy milk lovers wrong. Most of them thought nothing could taste better than Dairy Milk. It is creamier, smoother, and tastier than the original Dairy Milk. ADVERTISING The advertising of Silk is based upon its creamy and smooth experience that instantly melts in ones mouth. This brand promise was beautifully captured by the tagline `Have You Felt Silk Lately?. CADBURY CELEBRATIONS

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A festival is not a festival unless it is celebrated, and a celebration is not a celebration unless you open a box of Cadbury Celebrations! With this product, Cadbury was successful in placing chocolates as the modern variants of the traditional sweets and also managed to connect to the average Indian for whom festivals hold a special significance. ADVERTISING If Raksha Bandhan is special to an average Indian, so is Diwali (festival of light). The Cadbury Celebrations journey began in 1997 with Cadbury attempting to introduce the Celebrations range as a typical gift for a festive occasion. In 2000, Cadbury placed Celebrations as `Rakhi Par Ek Meetha Sa Uphar and people started liking the idea of gifting their relatives with chocolates.In 2010, Celebrations introduced its Rich Dry Fruit and Assorted Favorites range which was aptly supported by the `Shararat commercial. Cadbury knew there was potential in its product to sell during Diwali as well and so came up with campaigns such as `Diwali Ki Meethi Shubhkaamnaaye, `Har Pal Bane Ek Utsav and the famous campaign of 2004 with commercials starring Amitabh Bachchan`Iss Diwali Aap Kisse Khush Karenge? BOURNVILLE AND PERK

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One of the luxury chocolates of Cadbury, was Bournville the Indian formula for dark chocolate in 2009 whereas Perk is a chocolate cum snack which came up in 1996. ADVERTISING Bournville was promoted with the idea You don't buy a Bournville you earn it which aptly described it as a chocolate meant for consumers with a mature palate based on its distinct rich intense taste, quality ingredients (best Ghanaian Cocoa) and a British heritage. Perk was launched in the year 2009 and was promoted with the `Sapno Se Race Lagao commercial that conveyed that the consumers couldnt wait to enjoy the new tasty treat! Then came up Cadbury Perk with Glucose energy. 5-STAR

A 5 Star is special; behind every bar of 5 Star, one can find a delighted person relishing every bit of it! 5 Star has been a favorite of Indian consumers for more than 40 years and it still continues to be what it is and more. 5 Star was launched in the year 1969 and had a unique combination of chocolate, caramel, and nougat that set a new revolution in the making of chocolates. Never before had people bitten into something so chocolaty and deliciously chewy at the same time! 5 Star is available in almost every local mart across the country. ADVERTISING 5 Star is a golden classic with a savory caramel filling covered with hard chocolate. 5 Star Crunchy was launched in the year 2005 and in 2008, 5 Star Fruit & Nut was launched which increased the number of 5 Star fans all the more. People had a choice between chewy caramel and crispy flakes covered with the good old chocolate. The current Jo Khaae Kho Jaaye advertisement of 5 Star comprises of the lovable duo of Ramesh Suresh, who get lost in the

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delicious taste of 5 Star. This duo has gained huge popularity through successive media campaigns. GEMS AND ECLAIRS

Cadbury Gems is another example of excellent design by Cadbury. It is a little button of chocolate covered with colorful candy shell with attractive packaging. Gems has been a big hit amongst children, teens as well as adults. Cadbury Eclairs came to India in 1971 and has been a favorite of kids and adults alike. In todays scenario, Eclairs is used more like a currency substitutes in various kinds of shops and is bought in wholesale by shopkeepers from all across the country. Cadbury Eclairs Rich Brownie was launched in the year 2011 which contained an indulgent brownie flavor in its caramel and pure Dairy Milk chocolate in its centre. ADVERTISING Gems was famous within kids but Cadbury wanted adults to like it as well. In 2009, Rangeen Panda Ki Rangeen Pasand commercial came up depicting that Gems can add color to otherwise routine and dull life. In this commercial, the colour of a black & white Panda changes into the colour of Gems it consumes.

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In the year 2009, Cadbury Eclairs underwent a makeover adding on an extra gush of liquid chocolate encased in softer caramel and a brand new package. The `Chocolate Ka Meetha Bomb campaign was launched to promote the new improved Eclairs. The `Doob Le Zara campaign launched in 2010 increased the romanticism of Eclaris all the more. COMPETITIVE ADVANTAGE OF CADBURY Cadbury has a wide product range The product prices are good A reputed position in the international business providing it with a solid base. Good advertising and ample availability.

NESTLE
Nestl India is a subsidiary of Nestl S.A. of Switzerland. Nestle India has seven factories and a large number of co-packers, and is a vibrant Company that provides consumers in India with products of global standards. It is committed to long-term sustainable growth and shareholder satisfaction. The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'. Nestls relationship with India dates back to 1912, when it began trading as The Nestl AngloSwiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. After Indias independence in 1947, the economic policies of the Indian Government emphazised the need for local production. Nestl responded to Indias aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl to develop the milk economy. Progress in Moga required the introduction of Nestls

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Agricultural Services to educate, advise and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. Nestl set up milk collection centres that would not only ensure prompt collection and pay fair prices, but also instil amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well.

Nestl has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. After nearly a century-old association with the country, today, Nestl India has presence across India with 7 manufacturing facilities and 4 branch offices spread across the region. Nestl Indias first production facility, set up in 1961 at Moga (Punjab), was followed soon after by its second plant, set up at Choladi (Tamil Nadu), in 1967. Consequently, Nestl India set up factories in Nanjangud (Karnataka), in 1989, and Samalkha (Haryana), in 1993. This was succeeded by the commissioning of two more factories - at Ponda and Bicholim, Goa, in 1995 and 1997 respectively. The seventh factory was set up at Pantnagar, Uttarakhand, in 2006.

The 4 branch offices in the country help facilitate the sales and marketing of its products. They are in Delhi, Mumbai, Chennai and Kolkata. The Nestl India head office is located in Gurgaon, Haryana. Head Office Gurgaon Registered Office-- New Delhi KITKAT

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Kit Kat is a chocolate-covered wafer biscuit bar confection that was created by Rowntree's of York, England. It is now produced worldwide by Nestl, which acquired Rowntree in 1988. Kit Kat is not produced in the United States under Nestle, but under Godrej Hersheys. It has a unique finger format with a breaking' ritual attached to it.

Kit Kat has an annual consumption of above 12 billion people around the globe and is famous within kids as well as adults in India. It is one of the most successful brands in India.

ADVERTISING Nestle Kit Kat has acquired its unique way of eating by snapping the wafer finger with the help of its advertisement campaign. Its campaign Kit Kat Break Banta Hai put forth the idea of rewarding oneself with a kit kat treat during the break time or when in stress.

MUNCH

Nestle Munch is yet another product that is very famous amongst kids. Nestl Munch Guru pack

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provides great value-for-money for Munch lovers. It is a delicious chocolaty treat that delivers the superlative crunch which Munch is known for. Nestle Munch contains less than 80 calories, which is an advantage over a few other chocolates falling in the same price. It is basically wafer covered with delicious choco layer and is the largest distributed brand in its category. ADVERTISING In the year 2007, the Mera Crunch Mahaan commercial featuring the famous actress Rani Mukharjee , came up, which focused on the crunchy, crispy mouthwatering taste of Munch. This campaign highlights the great crunchy taste that has made Munch so popular. The latest campaign of Munch is Khaao Bina Tareek Dekhe. This commercial for Nestl Munch, tries to give out, the fact that Munch can be consumed any day, anytime. MUNCH POP CHOC Munch Pop Choc is a pack of delightful crunchy chocolaty nibbles - wafer cubes covered with delicious choc layer. This product had its own unique way of projecting itself as the Pop chocolate. It was stated that the best way to enjoy a Munch Pop Choc is to open it, pop it in and enjoy! COMPETITIVE ADVANTAGE OF NESTLE Strong parent company being the worlds largest processed food and beverages manufacturer. Nestle has some very strong brands which are almost generic to their product categories. Nestle recently created Nestle Nutrition, a global business organization designed to strengthen the focus on their core nutrition business, thus integrating nutritional-value added products.

AMUL
THE BIRTH OF AMUL

It all began when milk became a symbol of protest

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Founded in 1946 to stop the exploitation by middlemen Inspired by the freedom movement

The seeds of this unusual saga were sown more than 65 years back in Anand, a small town in the state of Gujarat in western India. The exploitative trade practices followed by the local trade cartel triggered off the cooperative movement. Angered by unfair and manipulative practices followed by the trade, the farmers of the district approached the great Indian patriot Sardar Vallabhbhai Patel for a solution. He advised them to get rid of middlemen and form their own co-operative, which would have procurement, processing and marketing under their control.

In 1946, the farmers of this area went on a milk strike refusing to be cowed down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in 1946.

This co-operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just two village dairy co-operative societies and 247 litres of milk and is today better known as Amul Dairy. Amul grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel, the founder Chairman and the committed professionalism of Dr Verghese Kurien,who was entrusted the task of running the dairy from 1950.

The then Prime Minister of India, Lal Bahadur Shastri decided that the same approach should become the basis of a National Dairy Development policy. He understood that the success of Amul could be attributed to four important factors. The farmers owned the dairy, their elected representatives managed the village societies and the district union, they employed professionals to operate the dairy and manage its business. Most importantly, the co-operatives were sensitive to the needs of farmers and responsive to their demands.

At his instance in 1965 the National Dairy Development Board was set up with the basic objective of replicating the Amul model. Dr. Kurien was chosen to head the institution as its Chairman and asked to replicate this model throughout the country. AMUL is organized as a cooperative of cooperatives (i.e., each village society, a cooperative in

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itself, is a member of the AMUL cooperative) thereby deriving the advantage of scale and uniformity in decision making. The founders of Kaira Union realized that to fulfill their objectives, a large number of marginal farmers had to benefit from the cooperative a network of stakeholders had to be built. And once built, it had to grow so as to draw more rural poor to undertake dairy farming as a means of livelihood. The network had to have several layers the organizational network where the voice of the owners governed all decisions, a physical network of support services and product delivery process and a network of small farmers that could deliver the benefit of a large corporation in the market place. More importantly, a process had to be put in place to build these networks.

AMUL FRUIT N NUT CHOCOLATE

Product Name

Amul Fruit 'n' Nut Chocolate CONGRATS PACK Amul chocolates are made with goodness of rich creamy milk & delicious cocoa.

Description

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Packing

Available in 150g chocolate cum greeting card pack

Product Features

Amul chocolates are made through refiner from world's No. 1 Carle & Montanari to give a smooth mouth feel. The pack comes with greeting card with congratulations message.

Product Application The pack can be used as a gift to Congratulate success of your loved ones. Pamper your loved ones with exquisite taste of Amul Chocolates. AMUL WAFER CHOCOLATE

Product Name Description

Amul wafer chocolates Crunchy wafer bars perfectly complimented with Choco layer. Amul Bindaaz wafer 15g (chocolate flavor). Amul Bindaaz wafer 15g (strawberry flavor).

Packing

Product Features

Crunchy wafer bars perfectly complimented with Choco layer - available in chocolate and strawberry flavors.

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Product Application Indulge yourself in exquisite taste of Amul wafer chocolates and pamper your loved ones.

AMUL CHOCOLATES

Product Name

Amul Chocolate Amul chocolates are made with goodness of rich creamy milk & delicious cocoa. Milk Chocolate 12g, 22g, 35g Fundoo Milk Chocolate 12g, 30g

Description

Packing

Dark Chocolate 35g Fruit & Nut 40g, 2x150g Almondbar 35g

Product Features

Chocolates are made through refiner from world's No. 1 Carle & Montanari to give a smooth mouth feel.

Product Application Indulge yourself in exquisite taste of Amul chocolates and pamper your loved ones.

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DEPOT OFFICE--Gujarat, India COMPETITIVE ADVANTAGE OF AMUL Amul initiated the dairy co-operative movement in India and formed an apex co-operative organisation called the Gujarat Co-operative Milk Marketing Federation (GCMMF). Today, this movement is being replicated in 70,000 villages in over 200 districts in India, transforming the life of the Indian villager. This co-operative revolution has made India the largest producer of milk in the world today. Amul is the only brand that has been able to do such a thing. Amul also has Cometitve Sustainable Advantage (CSA) over its competitors.

GODREJ HERSHEYS
LOGO

Godrej Hershey Limited (GHL) is a Joint Venture (JV) between The Hershey Company (USA) and Godrej Group. GHL operates in multiple categories such as confectionery and beverages. GHL has four Regional Sales Offices in Mumbai, Delhi, Chennai and Kolkata. The organization has a strong sale force of 500 people reaching to more than a million retail outlets through 1500 distributors spread across India. GHL has an aggressive growth plan to evolve as the market leader in the Food & Beverage space in India. Strong product innovations, brand building, and investments in improving people and process capabilities form critical aspects of future growth strategy for the organization.

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GHL has also played an active role in the community, taking part in many initiatives that have benefited the environment, healthcare and education. Head Office-Mumbai, Maharashtra Factories Mandideep dist., Madhya Pradesh Chittor, Andhra Pradesh

NUTRINE

Nutrine Confectionery company is one of the leading players in the Indian confectionery market. It was acquired by Godrej in the year 2006, and forms a key collection for Godrej Hershey today. Nutrine contains within it, products such as Maha Lacto, Maha Choco, Nutrine Eclairs, Nutrine Lollipop, Nutrine Santra Goli, Aasay Kokanak and Honeyfab. These are present in hard candy, clairs, toffee, lollipop and roll formats. The confectionery factory is located in Chittoor (Andhra Pradesh).

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CONCLUSION
Hence from this piece , it may be concluded that Cadbury dominates the Indian confectionary market . Nestle , Amul and Hersheys are among other notable brands in the Indian market. It may also be deduced that confectionary brands whose advertising appeals more to the emotional aspect of the Indian population along with quality products has been more successful in the India.

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BIBLIOGRAPHY
WEBSITES: 1. http://www.cadbury.co.uk/the-story.aspx 2. www.nestle.in 3. www.amul.com
4. www.managementparadise.com 5. http://fmcgmarketers.blogspot.in/2007/12/chocolate-market-in-india.html 6. http://www.scribd.com/doc/16808474/Amul-Dairy-Project-by-Vipul-Vyas 7. http://www.scribd.com/doc/49760711/Nestle-India 8. http://summertrainingreports.blogspot.in/2010/01/cadburythe-marketing-strategies-of.html

BOOKS: 1. Marketing management book by Philip Kotler, Kevin lane Keller, Abraham Koshy, Mithileshwar Jha, 13th edition.