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MBM 203

CHOCO-LA-VITA- CHOCOLATES EATING INTO INDIAN SWEETS INDUSTRY.


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(A.)Introduction
Chocolate, the world's most illustrious food item has become a vital part of daily appetite among Indians. Be it a birthday, job promotion, salary increment, examination success or religious and traditional fiesta, every Indian is ready to nibble his / her share of chocolate to rejoice. Today, the Indian confectionery industry is one of the fastest growing in the world with an estimated market size of over Rs 2,000 crore per annum accounting for an annual growth of 1820 per cent. The global chocolate market is estimated to be around $85 billion. The Indian confectionery industry is further categorised into sub-sectors such as sugar- based confectionery, chocolate-based confectionery and gums.

The Beginning:
Chocolate has a long history of almost 3,400 years. At the beginning, it was consumed as beverage by the Central American people including Mayan and Aztecs. Ancient Mayans and Aztecs linked chocolate with their gods and goddesses of fertility and so they called it Food of the Gods. Dr J S Pai, executive director, Protein Foods and Nutrition Development Association of India (PFNDAI), said, "Early chocolate products were beverages rather than solid sweets. Even fermented alcoholic drinks prepared from it were consumed. After the Spanish conquest of Aztecs, chocolate was brought to Europe and the rich started drinking chocolate beverage." After its inception as a beverage drink, the chocolate-making process remained unchanged for hundreds of years.

Cocoa

drink:

Later, when the Industrial Revolution arrived, many changes occurred that brought the hard, sweet candy to life. "Famous British physician Hans Sloane in Jamaica came across a drink made of cocoa enjoyed by locals. He made it more palatable by mixing it with milk, thus making the first milk chocolate beverage. This recipe was eventually acquired by Cadbury Brothers who then started to manufacture in the 19th century. The Industrial Revolution enabled separation of cocoa butter and cocoa powder, so various different products including the most popular chocolate candy were made from the various ingredients. As cocoa plantation was possible in other parts of the world besides Central and South American places, especially in Africa, and
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large manufacturing units started producing chocolate-based products, these were then affordable by common people too," Dr Pai, noted in one of his article titled Chocolate - Food of the God.

Chocolate leads the

way globally:

Chocolate was and would remain favourite sweet dish for all classes across the world. In recent times, despite global economic downturn, premium and specialty items have shown strong growth over the long-term. Alia Mukadam of Qatar Airways, Doha, said, "There is no substitute for chocolate. Over the last several decades there has been increased understanding of what constitutes a healthy diet and there has been a spectacular increase in sales of sugar-free, reduced fat and reduced calorie offerings." According to confectionery experts, one of the primary demand drivers for chocolate and other sweets globally is consumer taste, and patrons continue to love chocolate. Matt Sena, research analyst and trader, said in a published paper, "Long a beloved treat in the Western world, a recent study in Great Britain showed that 91% of females and 87% of males consume chocolate products. But the taste for chocolate is now expanding into highly populated nations with a growing middle-class, such as India and China. Rising disposable incomes and changing tastes will continue to drive growth in the industry overseas, just as improving domestic economic conditions increase sales at home."

Rosy picture

ahead,

for

India too

As per the market reports, per capita consumption of Switzerland is in top followed by North European countries with approximately 7-10 kg and the US with around 5 kg whereas India's chocolate per capita consumption stands nowhere (around 300 gm). In developed countries, chocolates have been widely accepted to all categories people, particularly kids and women. After LPG - Liberalisation, Privatisation and Globalisation, India has witnessed tremendous growth in F&B sector, particularly, in the confectionery segment. Many foreign players like Nestle and Cadbury forayed into the Indian market to tap 100+ million customers.

Growth

drivers

Hussain Shaikh, proprietor, Heena Sales Corporation, suppliers of candies & premium chocolates in Pune, said, "The growth we achieved in last years of 21st century is remarkable. Today, the key growth drivers of chocolate industry in India are tradition of gifting sweets, shifting in consumer preference from traditional mithai to chocolates, rising income levels and
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attractive pricing which is suitable for every pocket. The urban India and tier I, II cities have woken up to the fad of chocolate being considered as a gift proposition. While even till few years back sweets were the only option in delicacy gifting, overt media exposure and smart marketing techniques have positioned chocolates as an alternative." As per research study done by Technopak Advisors, the two giants Cadbury with 70 per cent and Nestle around 25 per cent have been instrumental in building up the chocolate market in India with huge investments in product development, advertising and brand building. Here, the chocolate industry has plethora of opportunities. The entry into this market requires a large capital investment for branding and production facilities. Also, facing the major international players with established history and success is difficult. "Another feature that works for this sector is the attractive pricing of products which particularly suits the Indian scenario wherein consumers seek economical products. Features like affordability & availability will come into play only if people have the purchasing power. In addition, India has low per capita consumption of chocolates compared to other developed nations across the globe. It poses latent opportunity for growth as the country strives towards more off-takes for the product," Shaikh said.

(B.) Research Outline

Entrance of an assorted foreign industry in Indian food and beverage industry has impacted
the sales of the Indian sweets, which has grown with our Indian culture since millions of years. What are the various reasons underlying this enormous change? Is it that chocolates bring forth any entirely new product category luring the consumers exceptionally nicely? or Is it the difference in the approach of the manufacturers in reaching the consumers? In order to seek those numerous factors and varying approach of the chocolate manufacturers, the following research shall be taken forth.

Need of the study:


It will help in understanding how a foreign assorted industry is trying to capture a market where traditional sweets dominate the festivities. It will also help in analyzing how effectively Chocolate industry has used the four Ps of marketing and marketing strategies to capture the market and take a lead in the sweets industry.

Objective of the study


To analyze the extent to which Chocolates have affected the sales of Indian traditional sweets in Agra city.

Management Development Problem:


To chalk out how impactful the growth and penetration of chocolate industry is towards the traditional sweets industry.

Research Questions:
1. Analyze the consumer preference variations between chocolates and Indian sweets.
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2. Analyze the change taken place in the market acceptability of chocolates in India over the span of time.

Hypothesis:
Chocolates have affected the sales of Indian sweets.

(C.) Research Design


Type of study: The study would be a Conclusive natured study.

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2. Type of research design: Under Conclusive natured research design, the study would be Descriptive.

3. Scope of study:
Time frame: Current time period Location: Agra City

4. Data Collection:
Primary Data: Questionnaires(sweets sellers), Online Surveys through Social Networking Sites(consumers) Secondary Data: Websites of Chocolate manufacturers, Articles.

5. Sampling technique: Convenient sampling(sweet sellers), Snowball sampling(consumers) 6. Target sample:


Occupation: Sweets sellers No demographic preferences for the choice of respondents among consumers

7. Sample size:
10 sweet sellers(Agra city) 100+ consumers(Agra city)