The industry chosen for this assignment is the chocolate industry a part of the FMCG.

. The chocolate industry globally is estimated to be at around $ 83.2 billion. Coming to INDIA , it is pegged at Rs. 2000 cr.. Growing at a rate of 18 20 % The key market players in india are Cadbury, Nestle and Amul with Cadbury occupying the lions share of is around 72 %. The factors affecting demand are: growth of major consumer population especially women Shifting in consumer preference from traditional sweets to chocolates The surprisingly affordable prices which are easily in reach of the middle class The rising awareness of calories or health consciousness

The factors affecting supply are The price of cocoa, milk, sugar, butter, vanilla and nuts. The import policy 1806 revisions (currently costing 30% basic duty ) Technical advances in the packaging of the chocolates Faster shipping Better refrigeration techniques

Now, a mishap in supply and demand could be two cases: The first case: The increased supply and no demand to match up to the supply The glaringly obvious consequence is the slashing down of the prices. Search of new avenues for consumption due to abundant availability(the discovery of chocolate for something other than consumption like chocolate therapy) Promotional offers like buy one get one free working in favors of the consumers and creating a good will for the company.

Second case: higher demand and lesser supply Again, the first consequence is the shooting up of the prices. Hypothetically, considering the case where the demand of the chocolate for non-consumption use grew (as in used for essences and the chocolate therapies) the manufacturers may be had to juggle between the supply to the consumption share and the non-consumption share. Lesser supply from the Cadbury resulted in gradual development of its competitors like Nestle and Amul. (Observed during the World War II in England). Also the area for collaborations (temporary or permanent) was wide open to keep up the supply.

Search for new sources of raw materials cocoa a native of the South America was cultivated at India during this time.