1

THE INDUSTRY SCENARIO

With the entry of multinationals and home companies sprucing up their act,
the confectionery market is booming. McKinsey & Co. has estimated the
confectionery industry to touch a whopping Rs. 6 !! crore by the year "!!#.
$ill the eighties, the chocolate market was small and the product category
itself was fu%%y. &n the eighties, Cadbury's ( the )irtual monopolist ( had
decided to focus its efforts on making chocolates a distinct category with an
identity of its own. *nd the marketer had sharply positioned its product at
children to do that. +ence, chocolates bore an ,-nly for kids. tag, and kept
adults at bay.
/y the end of the eighties, Cadbury's still ruled the roost with o)er #! percent
market share. *nd though se)eral brands ( like *mul and Campco ( tried to
break into the market, none of them had succeeded in shaking the leader's
grip. &n fact, Cadbury's had become a brand )irtually generic to chocolates.
$hen chocolates were used to reward and reinforce positi)e beha)iour and
hence were categorised as a lu0ury reser)ed for special occasions. $his was,
a stark contrast to the west where chocolates were snacked on, eaten as mini
meals or 1ust to suppress pangs of hunger.
/ut constant working by players like Cadbury's 2re(launch of Cadbury's 3airy
Milk targeting adults and as a casual any(time buy4 and 5estle towards
e0ploding the myth that chocolates are meant for children only, has resulted
in the segment booming.
Trends in the Industry
With socio(economic changes rapidly taking place, the young and not
so young population will lead a new life style and chocolate eating is definitely
going to be widespread and acceptable.
&n the industry, both population and family incomes as well as
urbanisation are on the increase.
$here has been a significant growth in the middle class, with .#
million people ha)ing upgraded to the 6uoted middle class.
$here is 6uantified data on 7MC8 usage ha)ing increased 25R9(:& &
&R9';# figures4
$hanks to the abo)e reasons the growth in the chocolate market is estimated
to be at ""< in "!!=. /ut marketers in the industry are looking forward to a
much higher growth rate, as &ndia's per capita consumption of chocolates is
only = 8ms. :ersus 6 Kg in the west.

2
$he &ndian Chocolate market can be sliced into four parts.
=. Moulded Chocolate Segment comprising slab chocolates like 3airy
milk chocolates, etc. $hese are made by pouring the ingredients into
moulds.
". Countline Segment comprising bars like star, /ar -ne, >erk, Kit
Kat, etc. $hese ha)e ingredients other then chocolate and are usually
/ar shaped, making for chunky bites.
?. Choco!anned Segment comprising chocolate forms like
/utterscotch, 5utties, $iffins, etc. >anned )ariety has different
cores@centers which are co)ered with a layer of chocolate.
A. Sugar!anned Segment comprising chocolate forms such as 8ems,
Chocolate eclairs, etc. $hese generally ha)e a sugar coating on the
outside.


3
RESEARCH METHODO"O#Y
*s mentioned earlier, the ob1ecti)e of the study is to formulate a Marketing
9trategy for any new entrant in the &ndian Chocolate &ndustry. While
recommending the said strategy detailed information from both primary and
secondary sources was collected and analysed. $his includedB
!rimary Sources
7our le)el primary information collections were undertaken.
=. $o analyse buying beha)iour and in order to gain an insight into the
buyer need(satisfaction le)el, a 6uestionnaire was formulated and
administered among #! people. $he profile of the respondents was as
followsB
=. Consumers of chocolates C =" years D in EF3+&*5*. $his was
sinceG chocolate consumption was witnessed amongst all age
groups.
". * distributor was also inter)iewed so as to get pertinent information
regarding the most important H>' of 7MC8 marketing C >lace.
?. I0tensi)e inter)iews were conducted with retailers in the EF3+&*5*
area. $hese included pan shops, grocery shops, bakeries,
departmental stores, etc. $hey pro)ided information on )arious facts of
chocolate distribution such as >oint(of Cpurchase material 2dispensers
etc.4, infrastructure problems, critical informational regarding the
policies of the present players in the market, etc.
Secondary Sources
* number of secondary sources of information were used. $hese wereB
&nformationB &ndustry statistics, problems facing the industry, future
outlook, etc. *lso measures being adopted for cocoa production
de)elopment.
&nternet websites -f Cadbury's, 5estle and indiainfoline.com,
ask1ee)es.com
I0tensi)e use of secondary information in the form of
maga%ines@1ournals@newspapers clippings, such as /usiness World, /usiness
$oday, /usiness &ndia, *&M, /rand I6uity, Iconomic $imes, etc.

4

$he methodology adopted was as followsB
&ndustry 9cenario 9ketch 2utili%ing secondary information4

I0tensi)e &nter)iews held with >rimary@9econdary 9ources
2Companies@Chocolate manufacturers *ssociation4.

I0tensi)e retailer inter)iews in EF3+&*5* *rea

7ormulation and administration of a 6uestionnaire

7ormulation of the Recommended 9trategy on the basis of the abo)e
mentioned >rimary and 9econdary &nformation


5
O$%ECTI&ES O' THE STUDY(
=. $o get familiar with their marketing strategies separately.
". $o )iew the segments being targeted by these brands in the
market.
?. Fp to what e0tent do the public respond to their productsJ
A. $o prepare a mar)eting *lan +or any ,rand that is *lanning to
enter the India Chocolate Mar)et-
. $o be a rele)ant guide for any brand launch in &ndia.

6
Com*any *ro+ile
History
9tarted business in =;A# in &ndia. $he company was incorporated as
Cadbury(7ry 2&ndia4 >)t. Etd.
7ounderB Kohn Cadbury in /irmingham, FK in =#"A
Current M3B Mr. Ra1i) /akshi
$urno)erB A! Cr.
5o. of officesB A 9taff 9trength C "!!! appro0.
=. /ranch Manager is responsible for the entire /ranch 7unction
". >romotional Materials C 5etwork ad, Media, >-9 Materials like
posters, danglers, dispensers etc.
?. $arget C *ll age groups
A. 3istributionB $hrough C&7 *gents L Re(distributors L Retailers L
consumers
8odownB = in 3elhi
-fficeB = in 3elhi
*)g. 5o. of calls per day by 9.-.B ?
9ales Reporting C weekly basis
. 9ales KitB 3aily call report, product folder, price list, calculator, etc.
6. -rganisational 9tructureB
M. Key productsB Cadbury's 3airy Milk, 9tar, 7ruit & 5ut, /ourn)ita etc.,
>erk
COM!ANY $AC.#ROUND
&n =;?! R +udson and Company finally 1oined with Cadbury. $his ga)e the
flourishing local firm a direct link with one of the greatest in international
chocolate manufacturing and marketing. -)er the years the company has
been in)ol)ed with many other long standing brands and entrepreneurs C
names such as 7ry C a chocolate brand dating back to =M6, and of course
9chweppes which is still part of the Cadbury group internationally although
not in 5ew Nealand.

7
&n =;6; Cadbury 7ry and 9chweppes merged internationally with the 5ew
Nealand Company becoming known as Cadbury 9chweppes +udson Eimited
in =;M?.
&n =;#6 Cadbury 9chweppes +udson merged with Cadbury 9chweppes
*ustralia. $he result was a truly international operation with both the 5ew
Nealand and *ustralian companies supplying each other. Cadbury
9chweppes *ustralia is a fully owned subsidiary of Cadbury 9chweppes plc,
the Fnited Kingdom based parent company.
Most recently, in =;;! Cadbury re6uired the 8riffins confectionery business,
and sold the +udson biscuit operation in a reciprocal agreement. $he 8riffins
business dates back to before the turn of the century. 8eorge 8riffin
established the company when he opened a small confectionery business at
5elson.
7inally, in =;;= we became known as Cadbury Confectionery Etd, and can
now boast dominance in 5ew Nealand's chocolate and sugar confectionery
markets. With manufacturing bases in both 3unedin and *uckland, as well as
sales offices in Wellington and Christchurch, the Company employs nearly
=,!!! in total.
$he Cadbury group has also flourished internationally. Cadbury 9chweppes
plc C the parent company C has manufacturing facilities in "! countries and
its famous brands are bought and en1oyed in more than ==! countries around
the world. Cadbury is one of the world's leading chocolate makers and is
number one in Ingland and *ustralia as well as in 5ew Nealand.

!RODUCTION
Cadbury &ndia's first manufacturing facility was set up at $hane 2Mumbai4 in
=;66. $oday, the factory has grown manifold and manufactures a range of
products that include Cadbury 3airy Milk, 9tar, 5utties, 8ems and
/ourn)ita. $he factory employs about M! people and houses the R&3 and
engineering de)elopment facilities of the company.
&n a mo)e towards backward integration, Cadbury bought &nduri 3iary farm in
>une in =;6A. Recently, a ma1or in)estment program resulted in the
installation of modern moulding, crumb and chocolate making facilities.
$oday, the &nduri 7actory manufactures intermediate products like milk crumb
and a range finished chocolates.
&n =;#;, the company began operations in their newest and most modern
plant at malanpur. I6uipped with state(of(the(art technology and backed by
constant in)estment, this unit manufactures Iclairs, 8ems, >erk and >icnic.

8
& I S I O N
$he go)erning ob1ecti)e for Cadbury &ndia is to deli)erB
9uperior 9hareholder :alue
Cadbury in e)ery pocket
The company believe this requires:
/roadening our consumer appeal and e0tending their reach to newer
markets
9ustained growth of their market share through aggressi)e product
de)elopment
9tri)ing for international 6uality in their products and processes
7ocusing on cost competiti)eness and producti)ity in their operations
and inno)ati)e utilisation of their assets
&n)esting to de)elop people

'inding a Mar)et /inner
3e)eloping a successful new product which will stand the test of time and
gain a permanent place in a company's product portfolio is not easy. Much
6uoted figures estimate that it takes in the region of # new product ideas to
end up with one successful new product and some people put the initial
figure as high as =!!. $he ma1ority of ideas fail early in the process C well
before they reach the consumer. * further significant proportion fail to mo)e
from the test market into national distribution. With the tremendous
in)estment re6uired for totally new products, it is essential that the whole
pro1ect is carefully researched. &n fact, it may take se)eral years for a new
product to grow from concept stage to national distribution. $he search for a
new product usually beings with an e)aluation of the opportunities or gaps in
the market.
9uccessful new brands are targeted as far as possible to a)oid taking market
share from a company's e0isting brands. * new sector must be created in the
market or the new product must attack competitors' brands.
9uccessful new product de)elopment is essentially team work in)ol)ing
research and de)elopment, marketing and sales, market research,
production, engineering and finance. *t Cadbury, in common with most
companies, the marketing role is fulfilled by the >roduct@/rand Manager
whose function is to coordinate and mastermind the pro1ect through from the

9
initial brief to national launch, until the largest sales tonnage has been
achie)ed. $he initial impetus for embarking on a 5ew >roduct 3e)elopment
pro1ect can beB
Changes in consumer lifestyles
$echnology de)elopments where new processing techni6ues ha)e
been de)ised
$he need for market e0tension abroad, particularly into *sia >acific,
and the demise of trade barriers.
+owe)er, products cannot be simply transferred from one market to another
without re)iew and possible adaptation to suit differing e0pectations and
cultures.
Whether the product strategy isB
I0isting product impro)ement
5ew product de)elopment within the current range of acti)ity
>roduction di)ersification
Sales sheet summary o+ Cad,ury India "td-
!roduct MR! 0Rs-1 2uantity Rate 0Rs-1
3*&RO M&EK 7. >*CK =A! 8M9 A!.!! -$ M. ?6?.6!
3*&RO M&EK =6! 8M Rs. !.!! -$ 6.! Rs. ""M.!
DAIRY MI". 34 #M Rs. .!! -$ =6." Rs. "M?.!!
3*&RO M&EK ?!8M Rs. =!.!! -$ M.A6 Rs. A?6.#!
3*&RO M&EK AA 8M Rs. =.!! -$ =6.=! Rs. A6.!!
3*&RO M&EK #! 8M Rs. "6.!! -$ 6.=! Rs. AM?.!!
/-FR5:&EEI 3*RK A! 8M Rs. =.!! -$ ".=! Rs. "M?.!!
7RF&$ & 5F$ AA8M Rs. =M.!! -$ =#. Rs. ?!;.!!
7RF&$ & 5F$ #! 8M Rs. A!.!! -$ =".# Rs. "M?.!!
R-*9$ *EM-53 #! 8M Rs. A!.!! -$ #. Rs. ?6?.6!
C*3/FRO'9 8-E3 AA 8M Rs. =M.!! >C "A.! Rs. =.A
CR*CKEI =! 8M Rs. ?#.!! -$ ".! Rs. ?A.!
CR*CKEI A! 8M Rs. =.!! -$ =M.=! Rs. "M?.!!
9$*R KF5&-R = 8M Rs. .!! -$ ="." Rs. "M?.!!
9$*R RI8FE*R ??(M8M Rs. =!.!! -$ ==." Rs. "M?.!!
/RI*K C-C-* "! 8M Rs. .!! -$ 6.?6 Rs. =#".!!
RIE&9+ "!8M Rs. .!! -$ =!."! Rs. =6?.#!

10
>&C5&C "68M Rs. =!.!! -$ ="." Rs. "=A.!#
>&C5&C A? 8M Rs. =.!! -$ M.A Rs. ?"M.6!
>IRK 9.:.>. =! 8M Rs. A!.!! C9 !.M# Rs. A?6?."
>IRK ? 8M Rs. =?.!! -$ ;.=" Rs. A"."
8IM9 =# 8M Rs. M.!! -$ A."! Rs. ?#A.!!
8IM9 ? 8M Rs. =".!! -$ =M.! Rs. ?"M.!!
5F$ /F$$IR 9C-$C+ ?! 8M Rs. =.!! -$ ".? 6#".!!
5F$$&I9 A! 8M Rs. =6.!! -$ =?.=! Rs. ";=.!!
C*R*MIE9 ?! 8M Rs. =A!.!! -$ =.? Rs. 6?M.!!
$&77&5 $&5 "!! 8M Rs. ==!.!! -$ ".? Rs. !!.!!
$&77&59 ?! 8M Rs. =".!! -$ A.! Rs. "=#."!
PCE*&R 6"! 8M Rs. =!!.!! C9 ?.== Rs. "!6#.#
PCE*&R ;? gm Rs. =.!! -$ =6.! Rs. =?6.!
MR. >->9 6!! 8M Rs. ?.!! -$ M.A# Rs. =?!.!
8--8EO -R*58I !! 8M Rs. 6;.!! C9 !.? Rs. =AA!.!
8--8EO -R*58I = K8 Rs. =?.!! C9 !.= Rs. =AA!.!
8--EO EIM-5 !!8M Rs. 6;.!! C9 !.? Rs. =AA!.!
I58E&9+ $-77II = K8 Rs. =M!.!! C9 !.= Rs. =M"#.!
>IRK E&$I M*58- "# 8M Rs. =!.!! -$ "".=# Rs. =#".!!
>IRK E&$I 9$R*W/*RRO "# 8M Rs. =!.!! C9 =;.=" Rs. =#".!!
/-FR5:&$* 8E*99 K*R "!! 8M Rs. AA.!! C9 .= Rs. =6=A.!
/-FR5:&$* RI7&EE !!8M Rs. #.!! C9 =?=.! Rs. M#.!!
/-FR5:&$* 8E*99 K*R !! 8M Rs. ;".!! C9 6.M Rs. ="66.!
/-FR5:&$* >I$ K*R !! 8M Rs. ;".!! C9 6.M Rs. ="66.!
/-FR5:&$* RI7&EE !!8M Rs. #.!! >C =".! Rs. M#.!!
/-FR5:&$* >I$ K*R = K8 Rs. =M.!! >C ".! Rs. =6!.
3R&5K&58 C+C-E*$I =!! 8M Rs. ".!! -$ ".=" Rs. A6.!!
3R&5K&58 C+-C-E*$I "!! 8M Rs. A.!! C9 =.? Rs. "=A.!
3R&5K&58 C+-C-E*$I !! 8M Rs. #.!! C9 !." Rs. "?M?.!
AD&ERTISIN# 5 SA"ES !ROMOTION
*s we ha)e discussed the importance of *d)ertising and 9ales promotion in
introduction, so we know how much ad)ertising aim sales promotion are
important.

11
$he slogans of ad)ertising are the tools of sales promotion are so important
which couples the customer to purchase the product. 5ow we are going to
discuss all these things one by one about Cadbury.
7ollowing are a few ad)ertising slogans used by Cadbury for introducing the
product to the customersB(
THE REAL TASTE OF LIFE 23*&RO M&EK 4
THODI SI PET POOJA KABHI BHI KAHI BHI 2>IRK4
WHEN EVER ON HUNGER STRIKE 2>IRK4
TAN KI SHAKTI, MAN KI SHAKTI 2/-FR5:&$*4
KUCH ZADA HI SOLID 2>&C5&C4
YEH CHOCOLATE KHAE AAP INHE KHAE 2ICE*&R94
*ll these slogans used by Cadbury are beautifully prepared because they can
compel the consumer to buy the product to some e0tent.
5ow we will discuss them in details with the help of which we can easily
understand how these slogans can lea)e these impression on the customer.
The Real Taste of Life
$his slogan was prepared for the first chocolate introduce by the Cadbury first
time in &ndia. $he chocolate was H3airy Milk'. $his slogan says that there are
many types of products present in the market, they ha)e different taste but
3airy Milk is the best and the true taste of the life. $his slogan also stands for
the )ictory. -n electronic media, the ad)ertisement shows that a cricketer
wins the match and after that he and his girl friend eats this product.
$herefore, this stands for )ictory of any body eats this product will definitely
win in his life.
Thodi Si Pet Pooja Kabhi Bhi Kahi Bhi
When Cadbury introduced its ne0t chocolate named H>erk' this slogan were
used. $his e0plains that if anybody is hungry and he do not ha)e any thing to
eat accept this >erk then he can ha)e this. $his shows that >erk is so good
chocolate which can be used as a substitute of food and is a complete food.
Whenever on un!er Stri"e
Eater on Cadbury came out with new slogan on tele)isionG the ad)ertisement
shows that few students are on hunger strike. /ut they had the chocolate.
$his shows that nobody can control himself@herself if this product of Cadbury
is lying in front of that person. $his means that Cadbury product is so good
that nobody can lea)e it.
Tan Ki Sha"ti# $an Ki Sha"ti

12
$his slogan was used for H/ourn)ita'. /ourn)ita is full of proteins, )itamins,
minerals and all those necessary things which are useful for our body and
mind. $herefore, this slogan stood best for /ourn)ita. $*5 K& 9+*K$&,
means the energy to the body. &f anybody here this product, he @she will
remain acti)e for whole day. $hat person will look healthy, acti)e and will look
smart.
%& '('(L)T& K)*+# ))P *+& K)*+
When Iclairs toffee came in the market, this slogan was used. Iclairs is a
toffee filled with chocolate. &t means that instead of ha)ing chocolate you can
ha)e eclairs toffee too. &t a person does not want to ha)e =" pieces of
chocolate, can ha)e one or two eclairs toffee.
K,' -).) * S(L*.
5owadays new chocolate has been introduced by the Cadbury and this
slogans going on creating demand for this new product. &n this ad we can see
that one chocolate falls on a car and damages the car. $his chocolate is so
strong due to lots of nuts, caramel etc. etc. present in this chocolate. $his
also shows that this is for ad)enturous people who lo)e thrills, ad)enture etc.
DISTRI$UTION SYSTEM ADO!TED $Y CAD$URY
Cadbury 9chweppes pick the world number ? soda market has aggfed to sell
most of its soft drinks business outside the F9 to Coca Co. for Q =.# billions
to finance a head on battle with Coke in the 5o. = soda makers home market.
$he agreements included the 9chwoers 3r. >epper chanda dry and crush
brands and e0ude 9outh *frica and 7rance the pact which was dependent on
regulatory appro)al was likely to be concealed in mid =;;; Cadbury said.
$he more will allow Cadbury to e0pand it 3r. >eeper business in F9 where it
deri)es two(thirds of its soft drinks sales and was a = per cent market share
at the same time it get Cadbury out of markets where it is growing at a slower
pace. $he shares rose as much as M!. per cent or M. per cent or M. per
cent =!!".
,$his sort out the places where Cadbury's systems weren't strong enough to
compete with Coca(Cola,. said Mr. 3a)id long an analyst a +enderson
Croshtwaite, ,they were fighting with proper for this.

13
!atterns o+ distri,ution channels and ty*es o+ distri,ution
intermediaries
Manufacture
6
9tockiest@3istributor
6
9emi(wholesaler
6
Retailer
6
Fser
$ain steps involved in .evelopin! the channel desi!n
7ormulation of channel ob1ecti)es.
&dentification of channel functions.
*nalysing the product characteristics and linking channel design to the
product.
I)aluation of the distribution en)ironment including legal aspects
I)aluation of competitors channel patterns.
I)aluation of company resources and matching the channel design to
the resources.
3e)elopment of alternati)e channel designs and selation of the one
that suits the firm most.
/ualities that 'adbury mana!ement loo" for 0hile selectin! dealers
/usiness reputation and business standing.
/usiness capacity and salesmanship.
I0pertise and pre)ious e0perience in the line.
7inancial capacity and willingness to in)est in the line.
Credit worthiness.
Capacity to offer to customers B
Re6uired assortments of products.

14
Re6uired ser)ices.
Capacity and willingness to e0tend credit to customers.
Capacity to pro)ide.
2=4 9torage facilities.
2"4 9howrooms,
2?4 9hops,
2A4 9er)ice workshops,
24 9alesmen and
264 9er)ice men commensurate with e0pected business
9ocial status
8ood relation withB
Consumer, especially, bulk consumers, and sub dealers.
!RICIN# !O"ICIES ADO!TED $Y CAD$URY
3espite intensifying competition for target share and a stream of new
products, pitted against each other, the price line of popular brands of
chocolate had mo)e upward o)er the past one year.
>rices of key brands like 5estle's Kitkat and Cadbury's 3airy Milk ha)e rose
by " per cent each between 5o)ember "!!= and 5o)ember "!!".
/rands such as Cadbury's Iclairs, where the unit prices is lower, ha)e seen
a sharpener price hike.
* ma1or portion of the price re)ision occurred in the last part of "!!= and in
the first 6uarter of "!!".
* sharp rise in cocoa prices and rupee and depreciation escalation in input
costs for chocolate manufacturers in the last leg of fiscal "!!=(;#.
Whole cocoa, prices ha)e receded from their high after 9eptember "!!=,
rupee depreciation and the higher incidence depreciation and the higher
incidence of e0cise duties has kept the price line of chocolates.
$he cost of cocoa, the key input, accounts for around A per cent of the
manufacturing costs for chocolates production.
3omestic cocoa production 2estimated at A!!4 to !!! tonnes for the
current year4 has been stagnant and takes are of less than a third of
domestic re6uirements of chocolate and malted food manufacturers.
Manufacturers such as Cadbury and 5estle &ndia import o)er half of this
cocoa re6uirements.
&nternational cocoa prices mo)ed up from =A! cents per kg in Kanuary "!!=
to peak at =;! cents per kg in 9eptember "!!=, prompting a round or price
increase in chocolates in the last part of "!!=.

15
9ubse6uently cocoa prices ha)e receded to around =!(=6! cents per kg
and are e0pected to rule at these le)els in the near term. +owe)er, rupee
depreciation of around =M per cent since 9eptember "!!= is likely to ha)e
offset the impact of this on production costs.
$he reclassification of the wafer(coated chocolates, making them chargeable
to an e0cise duty of =# per cent, against # per cent earlier, is also likely to
contribute to price escalation.
$he e0cise authorities ha)e recently passed an order on 5estle, directing it to
pay e0cise dues at the higher rate of =# per cent. $he matter is now under
appeal.
Ma0imum Retail >rice ( based e0cise duties, which ha)e been introduced on
chocolates in the latest budget could also add to the production cost
especially in the premium categories.
$hough cocoa prices ha)e e0tended to rule relati)ely soft. $he price line for
chocolates appears unlikely to come down in the near future.
'ACTORS IN'"UENCIN# !RICIN# O' CAD$URY
*nternal 1actors
Corporate and marketing ob1ecti)es of the firm.
$he image sought by the firm through pricing.
$he characteristics of the product.
>rice elasticity of demand of the product.
$he stage of the product on the product life cycle.
Fse pattern and turn around rate of the product.
Cost of manufacturing and marketing.
I0tent of distincti)eness of the product and e0tent of production
differentiation practiced by the firm.
-ther elements of the marketing mi0 of the firm and their interaction
with pricing.
Composition of the product line of the firm.
&2ternal 1actors
Market characteristics.
/uyer's beha)ior in respect of the gi)en product.
/argaining power of ma1or customers.
Competitors pricing policy.
8o)ernment controls regulations on pricing.
-ther rele)ant legal aspects.
9ocietal 2or social4 considerations.
Fnderstanding, if any reached with price cartels.

16
'adbury objective of pricin!
>rofit ma0imi%ation in the short(term.
>rofit optimi%ation in the long(term.
* minimum return 2or target return4 on in)estment.
* minimum return on sales turno)er.
$argets sales )olume.
$arget market share.
3eeper penetration of the market.
Intering new markets.
$arget profit on the entire product line irrespecti)e of profit le)el in
indi)idual products.
Keeping competition out, or keeping it under check.
7ast turn around and early cash reco)ery.
9tabili%ing prices and margins in the market.


17
NEST"E INDIA "IMITED
HISTORICA" HI#H"I#HTS
&ncorporated in =;; as 7ood specialties, 5est &ndia 25&E4 was promoted by
5estle *limantana, 9wit%erland, which presently holds =< e6uity stake in
the company. Manufacturing in &ndia began with the start up of the Moga
7actory in =;6". 5estleRs first unit at Moga, >un1ab is manufacturingB
Milk products
&nfant milk formulae
Weaning cereals
Culinary products
/e)erages
&t is the main manufacturing unit of 5estle &ndia Eimited. $he second factory
at Choladi, $amil 5adu to produce be)erages i.e. =!!< I-F for instant tea
was set up in =;6M.
$he third plant in 5an1angud, Karnataka was set up in =;#; to produce
&nstant Coffee
+ealth /e)erages
$he fourth plant at 9amalkha, +aryana, was set u in =;;?, to produce
Weaning cereals
Culinary products
+ealth be)erages
Milk products

18
$he fifth plant at >onda, 8oa was set up in =;;A to produceB
Wafers
Waffles
$he si0th plant at /icholine, 8oa commenced construction for manufacture of
a range of culinary products and this was e0pected to be commissioned in
the latter part of =;;6.
5estle &ndia, the largest food company in the country is continuously looking
at new niches in the market place for its )arious products.
&n milk products 5estle has made a considerable mark. 7or instance, the
company was the first to introduce a 3airy Whitener with its product
RI)erydayR. *nd till today that product is a brand leader despite the presence
of a host of other brands in the field. &5 the case of Milkmaid condensed milk,
5estle relaunched the product as desert maker and has seen the sales graph
climbing since.
&n baby foods, 5estle has made its strong hold with Eactogen and Cerelac.
5estle is also popular in pure ghee segment. &ts I)eryday pure ghee has
gained a 6uite satisfactory market share, 5estle has also entered into fitness
food products. 5estle today is a household name. 5estle e0tended the
product line in coffee by bringing in 3olco, and then 9unrise.
&n =;;!, 5&E entered the chocolate business introducing 5estle >remium
chocolate. 5estleRs products are sold under brand names such as a Milkmaid,
I)eryday, Cerelac, 5escafe, Maggi, Eactogen, Iclairs etc. &t launched the
world famous Kitkat chocolates in =;;. 3uring the year =;;6 Milo the
worldRs largest selling chocolate energy food drink was launched.
*ccording to the chart shown, we can easily known as to which product were
launched in which yearB
Eaunch year >roductRs 5ame
=;6" Milkmaid
=;6A 5escafe
=;6# Eactogen
=;M" Ricory
=;MA Maggi, Cuber, Cerelac
=;M# 5estum
=;#" 5espray, Eactogen
=;#? 9unrise, Maggi 5oodles 2Chicken Masala4
=;# Maggi 9auces ( $omato & +ot & 9weet

19
=;#6 I)eryday 3airy Whitener
=;#M Cerelac ( Wheat *pple, Wheat -range, Maggi 9auces, Chilli
8arlc, Masala Chilli
=;#; I)eryday 8hee, Maggi 9oups ( $omato, Chicken,
Mushroom, $asterRs Choice(Eeaf $ea. 9unrise I0tra
2originally Ricory4, 5estogen ", 9unrise >remium 2-riginally
9unrise4, Cerelac ( Wheat )egetable
=;;! 5estle Chocolate ( >remium Milk, Milky bar and Crunch
=;;= 5estle Iclairs, /ar(-ne, Maggi 9oups C Mi0ed :egetable,
Chicken 5oodles, 5estogen &
=;;" I)eryday 8old 2originally 5espray4
=;;? Maggi 9uper 9easoning 2-riginally Maggi Cubes4 ( Chicken,
:egetarian Eemon Malasa, 5estle /onus, >olo, /ar(one(
Roasted >eanut, $asterRs Choice ( 3ust $ea, Contamina (
9nack >ressing
=;;A Cerelac ( Wheat 9oya, Milkmaid 3esert Mi0es ( Custard
>owder, 8ulab Kamun, 9hahi Rabri, Kesar Kulfi, Maggi
$oniteRs 9pecial ( /utter Chicken 8ra)y 9auce, Karahi
>aneer 8rag)y 9auce, >i%%a 9auce $opping, 5escafe >re(
Mi0, I)eryday >re(mi0
=;; 5estle /onus ( Chocolate, 5estle Kitkat, $offo ( Coffee,
Ilacichi, Milk, >olo(>aan
=;;6 5estle Milo, Milkmaid 3essert Mi0es C Kalakand, Maggi
>ickles ( Eime, Eime 9weet, Mango, Mango >un1abi, Mi0ed,
Maggi 3osa Mi0es ( Masala >lain, 9ambhar, Maggi 9oups (
Chicken 9weet Corn, +ot & 9our and Rasam, >olo (
9pearmint, Cerelac ( Rice, $aserRs Choice ( $ea /ags.
=;;M Mithai Magic, 9plash Candy, /utter 9cotch Candy, $offee(
Ilaichoo, Koffees, >olo(7ruit Rings, I0tra 9trong, Maggi
Rich 9oups, 5estea, leaf@3ust $ea, 5escafe ?(in(=, $eamate
Creamer, Maggi >ickles, :ariants, Maggi Macroni 9nack,
Cerelac ( Wheat /anaa, Wheat +oney
=;;# Maggi ( $amarina 9auce, 5estle *llanRs 9ootherRs, 9unrise
Iclairs
"!!" 5estle ( 3ahi & &mli 9auce


20
MORE THAN A MOUTH'U" CHOCO"ATE INDUSTRY
$he &ndian chocolate market is getting bigger and better. While on one hand,
the premium segment 2comprising imported )arieties4 is opening up, on the
other, companies like Cadbury &ndia are launching indigenous products made
to international standards. -f the "!,!!!(tonne chocolates market worth
about Rs. A!! crores, Cadbury accounts for about M! percent, followed by
5estle, with a share of around "! percent. *mul has fi)e per cent of the
market, with minor players taking the rest. $he battle, though, is between
Cadbury and 5estle. $hough much smaller portfolios, 5estle is putting up a
touch fight.
4 Star
*lthough positioned internationally as energy bar, 9tar was positioned on
an emotional platform in &ndia during the late =;#!s. 9ymbolising
togetherness, 9tar was originally targeted at teenagers. &n Kune =;;A, the
company reworked the strategy for 9tar to make it a source of energy. &n
fact, before the launch of >erk, 9tarRs energy bar positioning made it a
snacking chocolate, with 5estle pitchign /ar -ne 2launched in =;;?4 against
it with the punchline Rfor those in between timesR. Cadbury will be launching a
new campaign for 9tar shortly. $hey would like to further 9tarRs e6uity in
the functional or snacking direction. &t is )ery nebulous one though.
Eclairs
Competing in the chewable toffees segment, Iclairs was relaunched during
the mid(nineties with a new name, 3airy Milk Iclairs. *ccording to Ra1i)
/akshi, Managing 3irector 2designate4, Cadbury &ndia Etd, growth in this
segment is )ery high. &t is worth o)er A!!! tonnes now. 5estle also a
presence here with 5estleRs Iclairs.
#ems
/roadcasting 8ems, though, did not pro)e to be a feasible proposition for
Cadbury. $argeted at children under =" years with the R8ems /ondR

21
ad)ertising, Cadbury decided to woo teenagers with the R9martR. :ery smart
campaign. /ut now, the company is re(targeting children with its animated
commercial. 8ems is the best brand to speak to children. Colorful chocolate
buttons appeal most to children and that is why we are re(targeting children.
While Cadbury has successfully relaunched a host of its sub(brand, it has not
been able to pay attention to brands like Mr. >ops lillipop. *s you grow and
add more brands, the ability to spend on brands becomes lower. $herefore
we ha)e selected a few critical brands to do a paper 1ob.
!O"O
>-E- is one of 5estleRs key strategic confectionery brands worldwide, and
represents 5estleRs first entry into the large !,!!! tonne p.a. 2organi%ed
sector4 &ndian 9ugar confectionery market.
ON TEAMATE
&t consists of an -R8 synopsis, its analysis and a report on the )arious
studies present within the organi%ation to come out with facts and hypotheses
which may be helpful in facilitating the launch of $eamate.
Rising ,rands 0All India7 in order o+ im*ortance1
a. 9agar
b. *mulya
c. Milkfood
d. 9apan 3. 9pecial
Declining ,rands 0All India1
*nikspray
I3W
*mul WM>
Rising $rands 08one 9ise1
North
9agar
*mulya
9apan 3 9pecial
East

22
*mulya
Milkfood
9agar
/est
*mulya
&ndana
I3W
*mul WM>
South
*mulya
9agar
9apan 9pecial
Declining $rands 0:one 9ise1
North
Milkfood
*mul WM>
*nikspray
I3W
East
9apan 3 9pecial
*nikspray
&ndana
I3W
/est
*nikspray
9pan 3 9pecial
South
I3W
$rands Dominant 2outlet wise distribution i.e. ma1or < of sales coming from
a particular kind of outlet4B
8roceries

23
Milkfood
&ndana
*nikspray
9pan 3 9pecial
8eneral 9tores
*mul WM>
*mulya
9agar
Chemist
9agar
*mul WM>
$rands Dominant Outlet 9ise 0,ased on mar)et share1
8rocer
a. I3W
b. 9apan 3 9pecial
c. *mulya
d. *nikspray
8eneral 9tores
I3W
*mulya
*mul WM>
*nikspray
Chemist
I3W
*mulya
9apan 3 9pecial
*mul WM>
Outlet 9ise Distri,ution
Rising /rands
8rocers
9agar

24
*mulya
Milkfood
8eneral 9tores
9agar
*mulya
Chemists
9agar
*mulya
9apan 3 9pecial
Declining $rands
8rocers
*nikspray
I3W
8eneral 9tores
&ndana
*nikspray
I3W
*mul WM>
Chemists
&ndana
*nikspray
Master 0in order decreasing ;olume1
Iast
9outh
5orth
West
#ro9ing Mar)ets 0in order o+ im*ortance1
9outh
West
Iast
5orth 2declining4

25
#RO/IN# MAR.ETS ------------'A""IN# MAR#INS
&ncorporated in =;; as 7ood 9pecialities Etd., 5estle &ndia Etd. 25&E4 is
promoted by 5estle *limentana(9wit%erland, which presently owns =<
e6uity stake in it. 5il is one of the top players in the processed food and
be)erages industry and the largest producer of instant coffee with a A;<
market share. &ts market dominance apart from instant coffee is spread o)er
processed milk products 2condensed milk, milk powders and dessert mi04,
infant foods and processed and culinary products 2instant noodles, sauces,
soups etc.4.
Istablished in =#6!, its 9wiss parent 5estle, 9.*. with ownership and a
clutch of topsellng global brands 2Kit(Kat, >olo, 5escafe, 5ido, Maggi, >errier
etc.4 is one of the largest and most profitable players in the processed food
and be)erage industry. with sales at F9Q AM.M billion, it ranks ?;
th
in the
7ortune !! list towering o)er its competitors like, Kelloggs, Conagra,
8roupe(3anone, Kraft(8eneral 7oods and others.
&ncreasing market dominanceB 5&ERs portfolio comprising o)er 6 products,
marketed through a representati)e(network in ?!!! towns and M!!!!
outlets, is manufactured at fi)e state(of(the(art manufacturing plants in &ndia.
While its Moga unit produces milk products, infant milkfood, weaning cereals,
culinary products and be)erages, the Choladi unit was set up to produce tea
in =;6M. $he third plant at nan1angud was set up in =;#; to manufacture
instant coffee and health be)erages. &ts other two plants are located at
9amalkha in +aryana and >onda in 8oa. &t is currently setting up another
plant at /icholim, 8oa to manufacture culinary products. $he gamut of
operations of 5&E could be broadly classified into four categories.


26
Direct Com*etition
*t present there are three ma1or players 5estle, Cadbury's and *mul in the
&ndian Chocolate market. Campco initially tried to break into market but failed.
/rief profile of the same has been entailed belowB
Cad,ury<s India "td-
Cadbury's &ndia Etd, has been in &ndia since =;A#. &ts brandsB 3airy Milk,
9tar, 8ems and Chocolate Iclairs are the households names in &ndia today.
&n all the segments i.e. moulded chocolates, count chocolates and panned
chocolates, it is undoubtedly the market leader.
Cadbury's has its manufacturing units at $hane 2Mumbai4, Malanpur, &ndori
2near >une4, Mithuri and Kolapur. &t has a strong distribution network with
about !! distributors in 5orth &ndia and more than ? lac retail outlets being
ser)iced all o)er &ndia.
&n =;;M, Cadbury planned to pump in Rs.#!(crore to up production capacity
at a couple of Cadbury's factories. $his cash is e0actly double of what's been
in)ested in =;;6.
$he Company launched >erk, a wafer enrobed chocolate in =;;. $his was
reactionary to the launch of Kit Kat and has been able to counter competition.
Cad,ury<s Dairy Mil) 0CDM1 The 'lagshi* ,rand
C3M, the oldest of Cadbury's brands was launched in =;6. &n the early ;!s,
a rise in the prices of cocoa, increase in the e0cise duty and a fall in the
demand inspired the idea of repositioning. $wo years in the process after
relaunch Cadbury's 3airy Milk's market share stood at " percent with sales
rising by an a)erage A! percent per annum.

27
/esides C3M Cadbury's has a number of endorser brands such as
7ruit'n'5ut, 5ut Milk etc. I)en though contribution of these brands to the
company's bottom(line is )ery small, they are re6uired in order to make a
complete portfolio of offering.
$he Company de)eloped a concentration strategy on C3M, 7i)e 9tar,
Cadbury' 8ems, Cadbury's Iclairs, >erk and the latest of its offering >icnic
2which has drawn a good response in the market4.
$he Company has also identified sugar confectionery, as a growth sector. &ts
first offering Googly.
Nestle India "td-
5estle &ndia Etd. has been in &ndia for more than ? years now. $he world's
largest marketer of chocolates 2became world number one when it ac6uired
Rowntree Macintosh of the FK4 ( 5estle, made its foray in the &ndian
chocolate &ndustry in 5o)ember =;;!. &t launched three products ( the milk
chocolate, the bitter chocolate and Crackle 2a crunchy chocolate4 ( in the
slabs category and /ar -ne in count lines.
Cadbury's was 6uick to react, and launched a whole host of products in
successionB *ll 9ilk milk chocolate, Creamy /ar, and a new )ersion of 9tar.
5estle, in the beginning did not ha)e its own manufacturing facility. &t had an
alliance with Campco to manufacture chocolates. Eater, in =;; a state(of(art
manufacturing plant was set up at >onda, 8oa at a cost of Rs. ! crores.
$his unit took care of the entire Kit Kat production. +owe)er, the production
tie(up with Campco still continued.
"aunch o+ .it .at
Kit Kat, one of world's most popular chocolate, was launched in &ndia in =;;.
Within months of its launch, it fulfilled e)ery target 5estle had set. &ts launch
was accompanied by the launch of Cadbury's >erk in order to counter Kit Kat
and safeguard the flagship brand C C3M. Kit Kat has been able to define a
new segment in the industry in the form of the wafer enrobed any time snack.
Kit Kat outsells >erk in the outlets where both are a)ailable. &n the crucial
markets of /ombay and 3elhi both are running neck(and(neck. &t has e)en
said to ha)e threatened the mother brand, Cadbury 3airy Milk.

28
NEST"E<s Ne9 "aunches
$rand "aunch
*llen 9plash 9elected Cities
29ugar Candies4
*fter Iight Mints 3elhi & Mumbai
Eion Wafer /ars 3elhi & Mumbai
'uture Outloo)
7ocus will be on chocolates and confectionery followed by culinary products
which include the Maggi range and coffee.
Amul
8u1arat Cooperati)e Milk Marketing 7ederation 28CMM74 launched the *mul
Chocolate way back in =;MA. With its milk chocolates, /adam /ar, Crunch
and 7ruit n 5ut has a market share of about <.
3ue to lack of focus and with multinationals spending huge amounts on
ad)ertisements its market share has been falling.
8CMM7 is in)ol)ed in a large number of products, of which chocolates
constitutes 1ust =(" <. $he company is not concentrating much on its
chocolate business. *s of now, *mul chocolates are not on company's focus.
&nterestingly, Kaira 3istrict Cooperati)e Milk >roducers Etd. 2K3CM>E4 ( the
manufacturer of *mul chocolate ( is selling whate)er it produces. Eimited
capacity is also a reason for the share it has.
+owe)er, *mul's memorable ad)ertising campaign positioning it as a ,A G!"
!o# So$%o&% Yo' Lo(%), saw the sales graph rising. *mul's sales grew by
?;< then. I)er since, *mul has maintained a low profile.
&t can further be seen that *mul 29II 7&53&5894.
Other Domestic !layers
$he only other organi%ed player in the market is Campco, which has an
insignificant share of the market. &t is supplying its production to 5estle. *part
from this Campco did come up with its new brands like $reat. /ut crunch of
resources grossly effected the pace of the company and is hardly to be heard
of today.

29
IM!ORTED $RANDS
Considering the high growth potential, )arious multinationals wanted to set up
facilities in &ndia 2Mars being one of them4. +owe)er, shortage of cocoa,
seasonality in demand, and the absence of a proper cold chain deterred them
from in)esting in &ndia. $he go)ernment also mo)ed the import of chocolates
from special item list to open general license category. $he duty structure
was also reduced. $his resulted in making import of foreign brands easier
and price competiti)e.
3ue the abo)e, Mars &nc.(the F9 giant, who had decided to set up facilities in
=;;2the site for which was also selected4, decided to postpone its
in)estment plans.
*n alternate strategy was formulated to import Mars chocolate brands into
&ndia through 9arura /usiness 2&4 Etd. 9arura, which came into e0istence
about an year ago, imports Mars brands and sells through its own distribution
network. +ighlights of the strategy being followed are mentioned belowB
&mports Mars brands e)ery A! days, after careful demand analysis.
$akes "! to "" days to reach &ndia.
Duty Structure
Customs 3uty A! <
Counter()ailing 3uty2 a form of
e0cise4
" <
9pecial 3uty29urcharge4 ? <
$he import duty on finished product is e0pected to come down to "!("
percent in a phased manner.
Distri,ution "ogistics
$he company has its operations being controlled from 3elhi. * typical 7MC8
distribution chain is being utilised. $his includes(
Carrying & 7orwarding *gents

3istributors

Retailers & Wholesalers2about !!! as of
now4

Consumers

30
&n 3elhi, the company reaches the retailers and the wholesalers on its own. &t
operates about ? )ans, and each retailer is ser)iced twice a month.
* soft launch has been done in 5orth &ndia. $he following 9tates ha)e been
co)ered in the first phase 2including the distribution chain4B
STATES DISTRI$UTION CHAIN
Ra=asthan = C&7 and 6 3istributors
( Kaipur, Kodhpur, *gra
Uttar !radesh = C&7 and =" 3istributors
( Eucknow, 5ainital, *llahabad,
/anaras, 3ehradun

!un=a, = C&7 and # 3istributors
Assam
( 8uwahati = 3istributors
Other Areas
( Chandigarh, 9himla, Kalka
Delhi 3irectly by company
Other 'oreign $rands(
5estle has also recently launched its foreign brands by importing them into
&ndia. $hese include Eion and *fter Iights.
'uture o+ The Im*orted $rands(
$he future of this segment is highly dependent on e0traneous factors like,
go)ernment policies regarding import of chocolates and the duties structure
therein. *ny mo)ement can make these players price competiti)e. &n
3ecember =;;M, a no. of products reaching e0piry are said to ha)e been
dumped into &ndia due to fa)ourable import policy 2this is when foreign brand
imports like 9arura's products came into the market4.
INDIRECT COM!ETITION
9ince the target audience includes, consumers of not only chocolates but
also of biscuits and confectionery, it faces indirect competition from these
product categories. *lso, other confectionery products like toffees, candies
etc ha)e pro)ed to be indirect competition 2howe)er would be limited since
we are targeting small kids segment4.

31
MAR.ET RESEARCH
&n order to recommend and e0ecute an effecti)e strategy for marketing of
goods and ser)ices, a systematic market research needs to be undertaken.
$he buyer preference research would play a )ital role in the assessment of
consumers taste@purchase habits and a better understanding of the
consumers mind. &n fact the strategy formulation@recommendations in this
report of the marketing mi0 relies hea)ily on these research findings.
* 6uestionnaire was administered 2as mentioned in the Methodology4
amongst people of different age groups and professions. Results from this
research pro)ided interesting cues, which were e0tremely beneficial in the
formulation of the recommended marketing mi0.
$he main ob1ect of this research@6uestionnaire was as followsB
$o find out the current the current taste@chocolate eating habits.
$o find out the e0tent of brand loyalty.
$o get feed back of consumers perception about fla)ours and
con)entional outlets.
$o find out e0tent of price sensiti)ity
Retail outlet preference.
/rand preference etc.
O$SER&ATIONS
/ased on the basis of the 6uestionnaire research, some of the facts that
came to the fore ha)e been listed below. $hese research findings played a
key role in the de)elopment of the recommended marketing strategy.

32
Kit Kat and C3M had a high unaided awareness le)el and also, both
these brands en1oyed a high consumer preference. *mul is percei)ed for
gi)ing )alue for money.
Chocolates are no more a children's item.
Most of people buy chocolate by impulse decision. Chocolates are
e)en considered as a good gift option.
Consumers preference )is(S()is place of purchase, si%e@form@taste of
chocolates, etc
Most of the respondents had a high ad. Recall le)el for Cadbury's
3airy Milk and Kit Kat.
When it comes to gifting, usually the recei)ers are
=. * friend of opposite se0
". Children
$he idea of making chocolates a)ailable at sweet shops, gift shops,
ice cream parlors, fast food 1oints@restaurants was asked to be rated. $he
concept of e0clusi)e chocolate parlors was rated fa)ourably 2around 6?<4.
$he product category does not en1oy high brand loyalty le)els.
>eople are not price sensiti)e and consider the prices of chocolates
a)ailable in &ndia, ,reasonably -.K... $hey are ready to pay a premium for
good 6uality. 9uitable price for a A!gm chocolate was felt to be between
Rs=!@( to Rs=@(.


33
'INDIN#S
A/ARENESS !URCHASE !RE'ERENCE
To* o+ Mind A9areness
!urchase *re+erence

!
=!
"!
?!
A!
!
6!
M!
#!
;!
>
i
c
n
i
c

7
r
u
i
t

n
R

5
u
t

C
3
M
7
o
r
e
i
g
n

b
r
a
n
d
s

K
i
t
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a
t

>
e
r
k

*
m
u
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9
t
a
r

/
a
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-
n
e

/
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a
k

C
r
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n
c
h

C
a
d
b
u
r
y
R
s
5
e
s
t
l
e

34
/hat in+luenced you to ,uy the selected ,rand>
!URCHASE $EHA&IOUR
Reasons +or !urchase
Chocolates A gi+t to a lo;e one

!
=!
"!
?!
A!
!
6!
M!
#!
*
m
u
l

9
t
a
r

K
i
t
K
a
t
C
3
M
>
i
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c
7
r
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i
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n
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5
u
t

7
o
r
e
i
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n

/
r
a
n
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s

>
e
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k
C
r
u
n
c
h
/
a
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-
n
e

C
a
d
b
u
r
y
R
s

5
e
s
t
l
e

!
=!
"!
?!
A!
!
6!
M!
#!
;!
*d)ertising Word of
Mouth
*ttracti)e
>ackaging
3ealer 9hop 3isplay 7amily,
friends,
relati)es
!
=!
"!
?!
A!
!
6!
M!
-ccasion led *s a gift Casual >urchase Inergy 9nack
35
As a gi+t it is +or
IM!U"SE DRI&EN
Most o+ my chocolate *urchases are *re*lanned


No
3?@
Yes
A?@
!
=!
"!
?!
A!
!
6!
M!
#!
;!
9pouse 7riends >arents Children Relati)es
Yes
3?@
No
A?@
36
I o+ten *ic) u* chocolates 9hile I ma)e other *urchases
REIN'ORCIN# IM!U"SE !URCHASE

IM!ORTANCE O' ATTRI$UTES !ERCE!TUA" MA!S
Im*ortance o+ ;arious Attri,utes in Chocolates
Ran) o+ Chocolates on ;arious attri,utes
*ttributes = " ? A

No
BC@
Yes
DE@
!
=!!
"!!
?!!
A!!
!!
6!!
M!!
$aste Tuality >rice 7la)our >ackaging *dd(ons /rand &mage
37
$aste C3M KitKat 9tar >erk *mul
Tuality KitKat C3M >erk 9tar *mul
>ackaging KitKat C3M 9tar >erk *mul
>rice >erk 9tar KitKat *mul C3M
7la)our KitKat C3M *mul >erk 9tar
*dd(ons KitKat >erk C3M 9tar *mul
/rand image C3M KitKat >erk 9tar *mul

!RODUCT RE"ATED
Taste 5 !re+erence


!
=!
"!
?!
A!
!
6!
M!
=@" gms ?@A! gms #! gms 9uper sa)er (
=! gms
"!! gms
38
Si:e Usage- /hat si:e o+ a chocolate go ysou normally ,uy
!RICE RE"ATED
Suita,le !rice +or a C? gms Chocolate

!
=!
"!
?!
A!
!
6!
M!
#!
;!
>
i
c
n
i
c

7
r
u
i
t

n
R

5
u
t

C
3
M
7
o
r
e
i
g
n

b
r
a
n
d
s

K
i
t
K
a
t

>
e
r
k

*
m
u
l

9
t
a
r

/
a
r

-
n
e

/
r
e
a
k

C
r
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n
c
h

C
a
d
b
u
r
y
R
s
5
e
s
t
l
e

39
!rice !erce*tion- The *rice o+ most *re+erred ,rand is

#reater than Rs-
B?F
4@
$et9een Rs- 3?F
5 Rs- 3CF
4B@
$et9een Rs- 3CF5
Rs- B?F
BA@
$elo9 Rs- 3?F
3C@
High EG*ensi;e
3A@
Chea*
4@
Reasona,ly O.
DE@
40
!rice sensiti;ity 0Elasticity1- I+ *rice o+ your +a;ourite ,rand is reduced7
you 9ill ,uy more o+ it
!rice sensiti;ity- I+ the +a;ourite ,rand is +e9 Rs- eG*ensi;e 9ould you
go +or it>
AD&ERTISIN#F!ROMOTION RE"ATED

No
CH@
Yes
4B@
No
3C@
Yes
HE@
!
=!
"!
?!
A!
!
6!
M!
#!
>erk KitKat C3M >icnic *mul 9tar
41
Ad;ertisement Recall Test Unaided
Most li)e Ads Unaided
/hether7 sales *romotion 9ould a++ect your *urchase decision
$and loyalty- I+ a *articular ,rand is not a;aila,le7 you 9ill(

!
!
=!!
=!
"!!
"!
>erk KitKat C3M >icnic *mul 9tar
No
4D@
Yes
CI@
Dro* the idea
3A@
#o to another
retailer
BA@
Try another
,rand
4B@
42
I+ your 9ant to ,uy a 9a+er chocolate7 say .it.at and i+ it is not
a;aila,le7 you 9ould settle +or a $arFMoulded chocolate say 4 Star or
CDM
CHOCO"ATE $RANDS IN INDIA
Are you ha**y 9ith the )ind o+ chocolate ,rand a;aila,le in India

No
II@
Yes
ED@
No
BC@
Yes
DE@
43
!"ACE RE"ATED
Outlet !re+erence
DEMO#RA!HIC !RO'I"E O' THE RES!ONDENTS
Age

0
100
200
300
400
500
600
>
a
n

s
h
o
p
9
w
e
e
t

9
h
o
p
s
8
i
f
t

s
h
o
p
s

9
t
a
t
i
o
n
a
r
y
s
h
o
p
s
&
c
e
(
c
r
e
a
m
p
a
r
l
o
u
r
s

7
a
s
t

7
o
o
d
1
o
i
n
t
s

M
i
l
k

b
o
o
t
h
s

R
e
s
t
a
u
r
a
n
t
s

I
0
c
l
u
s
i
)
e
c
h
o
c
o
l
a
t
e
p
a
r
l
o
u
r
s

R
o
a
d
(
s
i
d
e
K
i
o
s
k
s
$et9een I4 yrs 5
C4 yrs
3A@
$et9een B yrs 5
3D yrs
BA@
$et9een 3H yrs 5
B4 yrs
II@
$et9een B4 yrs 5
I4 yrs
3A@
44
SeG
Marital Status

Male
4D@
'emale
CI@
Unmarried
ED@
Married
II@
45
Occu*ation
Monthly income


"ess than Rs- 4???F
3?@
$et9een Rs- 4???F 5
Rs- H???F
3C@
$et9een Rs- H???F 5
Rs- 3B???F
BC@
More than 3B???F
4B@
46
RECOMMENDED MAR.ETIN# STRATE#Y DESI#N
$he market strategy of the firm is a complete and unbeatable plan or an
instrument designed specially for attaining the marketing ob1ecti)e of
company. $he formulation of the marketing strategy consists of two stepsB(
=. 9egmentation & target market selection.
". *ssembling the marketing mi0.
Mar)et Segmentation And Target Mar)et Selection
Market segmentation and target market selection ha)e an intimate
relationship with market strategy formulation.
$he company may focus on the following factors while laying down the
target market.
3- #eogra*hic Segmentation
8eographically the country can be broadly di)ided into ? sub segments
(Rural, 9uburban and Frban.
&n the first phase 2after the test launch4, Frban parts of the country should be
targeted. $he chosen segment is targeted because C
Eack of infrastructure, like refrigeration(not to )enture rural markets.
$he consumption pattern & beha)ior in Rural &ndia does not fit with the
product attributes and percei)ed benefits.
$he limitation of disposable income is another factor that hampers
entry in Rural areas.
9emi(Frban may be considered in the second phase. *n year after the
launch.
Within Frban &ndia, the cities with = million D population i.e. top "? metros will
be targeted. * soft launch of the brand should be undertaken before taking
the brand to these areas. $his 2test launch4 will be undertaken in /ombay,
since it 2/ombay4 is a high consumption city for chocolates. 29ourceB 5estle
2&4 Etd C infect 5estle's sales peaked out in /ombay, during its initial launch4.
B- Demogra*hic Segmentation
$he demographic )ariables ha)e been separately addressed to arri)e at the
target audience.
Age( =" years D segment of the population is recommended to be
targeted. 9mall kids may not be targeted, because of the nature of the

47
percei)ed product benefit by consumers in that age group, who are inclined
towards sweeter and creamier snacks. 7urther, it may not be easy to get
youngsters off their tuck money. *lso, children today already ha)e an array of
cheap domestic and international confectionery 2in the form of chewing(
gums, lollipops, rolls, lo%enges and toffees4.
'amily "i+e Cycle ( &n terms of family life cycle it is addressed at all of
the following B
=. Ooung@9ingle or Married 2with@without Kids4
". Matriculates and College goers
?. Married with no children under =#.
A. Married old couple@old single.
. Impty nest couples.
$he brand may positioned such that it fits all stages of family life cycle.
Income( $he income segmentation may be all households with an
annual income e0ceeding Rs. one lakh. $argeted audience may be all
households that can afford a tele)ision or ha)e access to satellite tele)ision.
I- !sychogra*hic Segmentation
Social Class( &n terms of psychograph the social class targeted is the
educated upwardly mobile urban middle and upper class.
!ersonality Traits( $his segment essentially consists of emulators i.e.,
upwardly mobile, pioneers, freaky, fun lo)ing type of people. $hese are the
people who like to en1oy life and belie)e in tra)eling and ad)enture.
"i+e Style( &n terms of lifestyle, it may be aimed at those who fa)or buying
con)enience products. $hey are also willing to e0periment with alternate
products in place of con)entional food items, as the uni)erse of chocolate
consumption is changing from occasion led to more casual consumption.
A. $eha;ioural Segmentation
$he moulded segment of the market is percei)ed to be the growth engine of
the market. +ence, this segment is 6uite lucrati)e for a new brand launch.
*lso, chocolate purchases ha)e mo)ed from being occasion(led to a casual
snack. +ence, anytime anyplace snack aspect needs to be established. $his
segment comprises of people who like to ha)e chances and want to try new
things.
. "earningIn;ol;ement
$he purchase of a chocolate is of a low(in)ol)ement category. &t is an
impulse purchase and decision to buy is not pre(planned.

48
6. Usage Rate
$he market may be further segmented on usage rather than attitude(
*nytime *nyplace 9nack. $his is a group of consumers that find traditional
snacks too hea)y. I)en though a range of chocolates may be offered, a core
brand 2concentrated strategy mentioned later4 may be launched in the count
line segment. 9ince this segment is tipped to be the growth engine of the
industry 2according to industry sources C Mr. 9an1ay :erkey, Cadbury's &ndia
and Mr. /ohidar4 and this segment has a substantial share of the market
2??<4.
TAR#ET AUDIENCE
7ollowing from the abo)e, it is recommended to target consumers who found
traditional snacks too hea)y. Fsage rather attitude is being used to segment.
$his is the segment that tended to pick up biscuits instead(something they
could munch while continuing with their schedule.
$here are =#= million urban indi)iduals in &ndia -ur target segment is people
li)ing in the top "? metros 2= million Dpopulation4, which implies 6? million
people. 7urther, 9IC *(/ in these "? metros with Cable & 9atellite at home
are targeted 2;A.A < of 9IC *(/ ha)e a cable & satellite connection4 U*ll
these are 5R9 (:& & &R9 ';; figuresV.

49
SU##ESTI&E MAR.ETIN# MIJ 'OR INTRODUCIN# A
NE/ !RODUCT
$he ob1ecti)e of the marketing mi0 de)eloped isB
KTo de;elo* a *roduct that is a;aila,le7 a++orda,le7 ,ased on local ra9
material7 and ada*ted to the taste and the nutritional ha,its o+ the
*o*ulationL-
$he elements of the mi0 ( >roduct, >rice, >lace & >romotion ha)e been
entailed belowB
!roduct
*s mentioned earlier, the two most important segments of the market are
Moulded and Countline segment 2segments ha)e a high share of the market4.
*lso, it can be seen in the findings, the &ndian consumer does not recognise
the difference between Moulded and Countline segment. 7urther, a key
decision that needs to be taken is to decide whether to ha)e a core brand
focus or ha)e a plethora of brands. +ere, it would be ad)isable to launch a
complete basket of products co)ering both the count line and the Moulded
chocolate segment 2at least if not >anned4. * range of brands can help
cushion out risks o)er the entire offering. *lso, it has been that to sustain in
the long term, a complete portfolio of chocolates for e)ery taste is essential.
+owe)er, a concentration strategy may be adopted in the first phase,
focusing on one core flagship brand.
$he )arious product attributes ha)e been mentioned belowB
9tipulations regarding the use of +ydrogenated :egetable -il(+:-
2since it contains nickel4 may be adhered to. 5ickel in chocolates can cause
cancer. +owe)er, research is still on to pro)e this. >roduct formulation should
keep this aspect in mind.
!ac)aging( $he packages or the co)er packs, of the brands can be
in /lue, 8reen and Red color which represents a fun element. $he packaging
should keep the product crisp, fresh and protected from the harsh climatic
conditions in the country, and hence pro)ide a longer shelf life.
Si:es( *s can be seen in the findings the most popular si%e is A! gms.
+owe)er, in order to pro)ide a good assortment of offering, the following
si%es may be introducedB
= gm ?@A! gm #! gm.
9uper 9a)er 2=! gms.4
"!! gms

50
8ift packagesB since, chocolates is a )ery popular gifting option, attracti)e
gift packs may be introduced. $he offering is also planned to be distributed
through gift shops, hence, attracti)e packs on the ,9wiss Coats. 2small local
player4 concept be de)eloped.
*ny foreign brand formulation needs to be ,tropicalised. and hence,
adapted to the &ndian conditions. 3ropping of the ,international. formula
25estle had faced problems because of this as product could not take the
&ndian heat4 may be considered.
Taste( 9ince, &ndians ha)e a preference for soft chocolates with
caramels, wafers etc inside 2see findings4, and the product should appeal to
the &ndian palate by incorporating these in the offering. &n this segment there
will be direct competition only from $ruffle. * panel of target consumers may
be called in to sample any fresh batch of chocolates, so as to ensure that the
product de)eloped appeals to the &ndian palate.
$he milk and creams in &ndia are different, and workers no way as well
trained as abroad. +ence, the product de)elopment must keep this fact in
mind.
$he product should also ha)e a high shelf life with a good shelf appeal
as well. $his so since, chocolates is an impulse buy and a good distinct
product look can attract a customer.
>roduct 3ifferentiation
9ince, there e0ists strong competition from hea)y weights such as 5estle and
Cadbury'sG the product offering should be well differentiated. 5estle, when it
launched its chocolate brands in &ndia, ensured that each brand was well
differentiated ( White chocolate2not con)entional brown4 with a sugary taste
that appealed to kids, Milky bar marbles differentiated as they had white
chocolate centre instead of the brown chocolate core in 8ems.
!ricing
7actors like competition, internal costs, and the positioning and corporate
ob1ecti)e of the company need to be taken into consideration by a company
before pricing a product.
>remium pricing 2relati)e to the competing brands C not designer
chocolates4, with special emphasis on taste and 6uality 2most
important attributes(see findings4 is recommended. $he premium pricing
does not suggest that the offering is made unaffordable to the target
consumer. * high price would accompany a promise for a better taste and
6uality. $herefore, the brand2s4' taste & 6uality needs to 1ustify the high price.
7urther, the product category is relati)ely inelastic i.e. consumers would not
stop buying their fa)ourite brands if the price is increased by a few rupees

51
2see findings4. Consumers feel that e)en if the price of their fa)ourite brand is
reduced, they might not buy more of it. *lso, there is a general perception of
chocolates being ,Reasonably -.K..2see findings4.
*ccording to 9arura /usiness, the high priced 2relati)e to other brands in the
market4 imported foreign brands ha)e been able to draw a decent response.
>rimarily, because of their high foreign brand e6uity.
*s can be seen in the table 2on brand comparison Con price, gi)en on the
ne0t page4, 5estle and Cadbury's are pitted against each other and *mul is
the cheapest brand in the market.
Considering the abo)e, a premium pricing strategy, with the assurance of
good 6uality and better taste, in a market that is not high on price sensiti)ity
may pro)e to be a success.
&t may be noted that the price should be only Rs"@( or Rs ?@( e0pensi)e than
Cadbury's or 5estle's offering. 7or instance
C3M is priced at Rs =@( for A! gms
5estle's Milk Chocolate at Rs =?@( for A! gms
*mul is priced at Rs =!@( for A! gms
$he offering in this segment may, therefore, be around Rs =6@(
While pricing the product, the following duty structure may be consideredB
=# percent e0cise
-ther state le)ied duties 2after e0cise4 such as 9ales ta0, etc. 2which
)ary from state to state4(within =! to "! percent.
!lacement(
$he success of any 7MC8 product thri)es on distribution. 7actors like
financial cost effecti)eness4 perish ability of the product, repeat ordersG
managerial capacity and unit )alue of the product need to be carefully
analysed while setting up the distribution framework of the company. $he
product category is essentially a ,pull. market. +owe)er, the channel
members pro)ide greater )isibility to the product. $his is e0tremely important
since chocolates is a low in)ol)ement impulse purchase product. $he
recommended distribution framework has been entailed belowB

52
Recommended Distri,ution "ogistics
$he first task in hand should be, to effecti)ely map the territory into smaller
more accessible and controllable units. *n effecti)e territory mapping needs
to be done not only to pro)ide an efficient co)erage of the market but also to
pro)ide growth opportunities to the constituents 2stockiest4, as the company
grows. $he recommended distribution chain would be as followsB
$he Company
Carrying & 7orwarding *gents
9tockiest@ 3istributors
Whole sellers
Retailers
Retailers
Carrying 5 'or9arding Agents( $hese may be appointed at two or more
9tate2s4 of operation of the company. Carrying & 7orwarding agents work on
a commission basis C ?< 2industry norms4 of the goods handled. &t is
recommended that the country keeps about A to 6 weeks of in)entory at the
C&7 le)el and a commission structure which is in keeping with the industry
norm. $herefore a ? percent commission on the in)oice )alue may be
pro)ided to the agents.
Stoc)iest( * stockiest pro)ides a local deli)ery point for the
manufacturer@marketer. $hey store the products, break bulk, and distribute to
the retailers. With greater no. of retailers now seeking credit from the retailer,
efficient management of collection has become a )ital part of the stockiest'
1ob.
$he main problems that new product faces is that of getting e0perienced and
effecti)e channel members. *s e0isting marketing marketer@manufacturer can
piggy back on the e0isting channel structure. * new company will ha)e to
pro)ide greater incenti)es con)ince channel members to stock the product
offering. +ence, an inno)ati)e means of channel handling needs to be
adoptedB
Competiti)e commission to the stockiest(around .66< on the in)oice
2industry standards .66<4
$he efforts of the sale representati)es employed by the stockiest to get
orders may be supplemented by the manufacturer's sales force.

53
Retail outlets to be ser)iced at least four times in a month 2at least
once a week4
3istributors 2stockiest4 to maintain stock of not more than = to "!
days
9ince, distributors are to maintain air(conditioned godowns, in
summers the *@C e0penses may be borne by the Co.
$he Merchandiser concept B Merchandisers may be appointed by the
company 2salary to be borne by the Co.4 in order to keep a constant touch,
and to ,feel the pulse. of the market. $hese merchandisers would also
facilitate implementation of )arious schemes of the co. Regular 1ob would
includeB
to check if products ha)e reached e0piry,
>roper setting of shelf space
>-> material displays, etc.
More transparent and clearer claims handling policy
/holesaler( Whole seller's prime concern is buy in bulk and sell at the
fastest rate. $he aim of any distribution chain of mass(market product
category like chocolates would be to e0pand its reach i.e. the no. of outlets
storing its products. $his may not be possible e)en with a well established
stockiest network. +ence, wholeseller's play a significant role in
supplementing the stockiest' effort send in pro)iding a better reach to the
product.
Retail Outlets( &t is e0tremely important for any chocolate brand to ha)e a
well entrenched retail presence. Reach & the key. Consider, 8eneral 3e
Confetaria 2marketer of /oomer /ubble gum4 ha)ing its products a)ailable in
A!!!!! outlets around the country, and >erfetti with "!,!!! outlets. $he aim
would be to e0pand the retail network as wide and deep as possible.
* ,blit% force. tactic for retail chain enhancement may be followed. * blit%
force is a ,commando. unit hired to target specific work. *bout to =!
salesmen, recruited from the same locality will be roped in to penetrate a
specific area. /eing far more familiar with the area, they are e0pected to
create about =! to =" new outlets daily. $his task on a later stage may be
entrusted to the distributor's salesman.
$he biggest problem in distributing a product category like chocolates is lack
of infrastructure. $he product needs to be kept in refrigeration 2more so, in
summers4(limiting the points at which it is a)ailable 2ideal temperature
needed for chocolates is =# to " degrees4. +ence, summer see sales suffer.
3emand falls by almost two(thirds in the summer months. $o counter this, the
Co. can C

54
Cool@chilled )ans may be operated in summers 2for C&7 to 9tockiest
transit of goods4. /ecause of only a seasonal re6uirement, these may be out
sourced.
&nsulated bo0es, &ce@chilled pads and packs, &ce surrounded 9inte0
tanks, towels etc may be used to ensure that the product reaches the
retailers without losing its form.
Considering the importance of refrigeration 2 specifically in summers4,
:i%%y coolers may be installed. $hese coolers not only pro)ide refrigeration
but also a good >-> )alue.
7urther, while distributing chocolates, it must be ensured that the brand has a
deep retail co)erage not a selecti)e presence.
7inally, while deciding onto the selling outlets, certain uncon)entional outlets
may be considered. $hese include C
a. S9eet Sho*s( $he product may be kept at traditional 9weet 9hops.
More so, during festi)al times.
b. #i+t Sho*s( *s the idea of gifting chocolate is becoming more popular
among the targeted segment, it would be profitable to ensure the
a)ailability of chocolate chocolates at )arious gift shops.
c. StationaryF$oo) Sho*s( $eenagers, is a lucrati)e segment with a
high consumption rate. $hey fre6uent book shops and maga%ine
stores 6uite often. +ence, making chocolate a)ailable at these outlets
may be considered.
d. Ice Cream !arlors ( &n &ndia, ice cream is treated as a fun product and
a sweet dish or a desert after meals. /oth these attributes match with
chocolate consumption habits. +ence, ice cream parlors may pro)e to
be beneficial in pro)iding greater reach to the product. +ere again,
chains like 3ollops, etc. may be used in order to facilitate greater
reach. * strategic distribution tie(up may be reached with ice cream
companies such as Kwality Walls, :adilal's etc for distribution of
chocolates along with the distribution of ice creams through the
:ending $rolleys.
e. 'ast+ood %ointsFRestaurants( *s a discussed abo)e that on our
country the chocolates can be ser)ed as a sweet after meals, hence
separate counters may be installed at )arious fast food 1oints such as
Mac 3onald's, 5irula's etc. $his would pro)ide the brand, not 1ust
greater )isibility but also )aluable sales. *lso, these outlets possess
ade6uate infrastructure to store chocolates.
f. %e9ellery Sho*s( $he leading 1ewellery shops in the city entertain
their customers with cold drinks and or tea. $hese are not suited to all.
$he complimentary chocolate treat at the particular shop would only
status of treating his clients differently and the children folk would also
en1oy this special treatment and lea)e fiddling with the precious gold
garments.
g. EGclusi;e Chocolate !arlors ( *s can be seen in the findings, there
has been an o)erwhelming response to the idea of buying chocolates

55
from e0clusi)e chocolate outlets. +ence, de)elopment of e0clusi)e
chocolate parlors may be considered.
!romotion( $his in)ol)es communicating persuasi)ely to the consumers, in
order to arouse their interest in the product. * detailed promotion plan
in)ol)ing ad)ertisement, sales promotion and public relations is proposed.
!ositioningB$he positioning of the )arious brands in the market has been
listed belowB
Cad,ury<s $rands !ositioning Nestle<s $rands !ositioning
Cadbury's
3airy Milk
*T+% R%,l T,-"%
o! L!%)
Classic Milk
Chocolate
>ositioned as
an affordable,
enriched milk
chocolate
7ruit n 5ut >ositioned at
Creamy /ar adults as an
Roast *lmond impulse anytime
5ut Milk >urchase
Crackle ( self e0pression
/ourn)ille )alues attached

9tar @ >erk >erk(>ositioned as a Kit Kat >ositioned as a
9nacking
Consumption.
9nacking
Consumption
/reak@Crisp@
3ouble 3ecker
*T+o. S P%" Poo/,)
9tar(Inergy /ar
*H,(% , B#%,0,
H,(% , K" K,")
R%,1+ !o# "+% S",#- /ar -ne >ositioned as a
trendy, cool
anytime snack

8ems@Iclairs

>ositioned as
/utterscotch )ariety, gifting
Caramels@
-)ertures
and taste
preference

5utties@*ll 9ilk
$iffins

56
Relish
$he flagship brand may be positioned as a premium 2see pricing4 anyplace,
anytime snack. 9ince, snacking proposition is the growth engine for the
industry, positioning should hence, be focused on that. $he two dri)ers C
&mpulse purchase and need to snack.
Ad;ertisement !lan
$he *d)ertisement plan could be as underB
Cor*orate o,=ecti;e( $he corporate image should be built o)er a period of
time, so as to reinforce consumer confidence in the brands of the company.
$his is also essential to counter competition, since o)er a period of time,
names such as Cadbury's, 5estle ha)e attained high le)els of recognition
and assurance.
Ad;ertisement O,=ecti;es
$o position the product as a ,high 6uality brand, with a wide range of
offering, pro)iding, fun anytime, anyplace products..
$o create awareness about new fla)ours.
&nduce consumer trials.
/uild corporate image
$o undertake competiti)e ad)ertisement.
The $udget B Considering the fact that the market is dominated by big(wigs
such as Cadbury's and 5estle, aggressi)e competiti)e ad)ertising needs to
be undertaken.
9ince both Kit Kat and >erk are allocating 6! to M! percent of their total ad
budget on chocolates, an allocation of about "! to " percent of the pro1ected
turno)er may be sufficient in the first year. *fter which about =! to =" percent
may be used to sustain the brands.
MessageB $he message design will be consist of followingG
*ppealB Chocolate is basically a fun product and e0change chocolate
as gifts is getting popular these days. *n IM-$&-5*E appeal of ,Eo)e. can
be designed. *part from it chocolate can be highlighted by fun elements in
life can be positioned as M--3 IEI:*$-R9. *n *9>&R*$&-5 appeal
would also be helpful.
>resentationB $he design of ad)ertisement will be the setup of fun
scene like picnic, college, campus, sports. 8round, partly time can be
suitable so that people can ,*ssociate. the chocolate with fun.

57
Message 9ourceB 7or print media the message source will be the copy
part and creati)e ad)ertisement design. 7or electronic media, the source will
be whole family unit, younger en1oying e0changing and eating chocolate.
Media
>rint MediaB Will be the ma1or maga%ines read by the target segment i.e..,
&ndia today, society, famine, stardust etc.
>.-.>.Material induce impulse purchase.
Ilectronic MediaB 9ince the whole of target segment watch 9atellite $:
during prime time and ad)ertisement will be featuring share for ? or more
time to lea)e an impact. *part from it company will be sponsoring the fun
related programmes on 33 and 9atellite $:.
!u,lic Relations(
&. $he company will hold a press conference announcing its arri)al in
&ndia and will highlight its global achie)ements.
&&. Company has plan to sponsor e)ents like " )i%., skiing ri)er rafting,
yachting etc.
&&&. Company will also sponsor fun based $: programs.
Sales *romotion Acti;itiesB $o induce consumers to try the new chocolate
and to get the product pushed in the market the sales promotion plan should
include the following B
$rade promotionB $he Company will ha)e to offer lucrati)e trade promotion
schemes, in order to push primary sale. $hese include incenti)es to stockiest
for pushing the sale of chocolates. *t the retail le)el, the following trade
promotion measures may be adoptedB
9chemes such as , a certain percent off on the purchase of Rs !!! or
Rs =!,!!! worth of chocolates.
* bo0 of chocolates free with e)ery do%en purchased.
9hop 3isplays@:i%%y Coolers Clinking them to sales
*part from these, Window9helf space may be purchased outright.
Consumer >romotionB 9ome of the consumer offers that could be introduced
are B
=. 7ree gifts like pen, comics etc., on return chocolate wrapper.
". Money 9a)ers
?. Chocolates in a toy truck etc.

58
A. $he Company can announce consumer ,contests. 2with proof of
purchase4 with attracti)e pri%es, supplemented by an ad)ertisement
campaign.
!oint O+ !urchase Material(
>-> is of e0treme importance, to a product category like this. $his is so,
since sales are impulse @casual dri)en. +ence, hea)y point of purchase
ad)ertising in the form of danglers, chocolate dispensers, etc. may be used.

59
Mar)et Testing !lan
$he company should test the product before it goes national 2"? metros with
million D population4. $his is so becauseB
=. &t would reduce the risk of failure in the market where it goes national,
by )alidating the marketing mi0.
". 7acilitate )alidation of positioning.
?. *llow correcti)e action through incorporation of consumer feedback.
7or test marketing the chocolates, the plan may be as followsB
=. $est -b1ecti)esB $o )alidate the brand names, new outlets, etc and to
measure the sales )olume, pricing and promotion policy. Competitor
reaction can also be analysed.
". $he product may be launched in /ombay 2 as a soft2test4 launch4. $his
selection was based on B
/ombay is uniformally represented by the target segment
Competitor acti)ity is high. *lso, 5estle was able to wrest a significant
market share from Cadbury's when it was launched.
/ombay is representati)e of the target segment.
IM!"EMENTATION
* well designed marketing plan counts for nothing, if not implemented
properly. 9uccess in the market place depends upon the way the plan is
implemented. $he launch is recommended to be before winters(say
9eptember or -ctober, since C
$hat period would facilitate high 3iwali sales, and
3uring winters there would not be much need for refrigeration. +ence
company would get )aluable time its infra in place.
$he success of the brand would largely depend on the followingB
9ales 3istribution 5etwork

60
Tuality standards
Research and 3e)elopment(continuous inno)ati)e products
$echnology support
CONC"USION
$he growth and e0pansion of the &ndian chocolate market in the past has
been hampered, due to stiff e0cise duties on chocolates 2at =# percent C
while other agro based products are being charged as low as #< and a few,
e)en !< e0cise4 and non(a)ailability of 6uality cocoa in the country.
*lso, import of chocolates has been put in the -8E category, with duties
being reduced 2in a phased manner4. $he industry has made
recommendations to the &ndian go)ernment to go back to the 9pecial item list
category, in order to safeguard the domestic industry.
+owe)er, continuous marketing focus by the players in the market has
resulted in the industry looking up like ne)er before. $hese
companies@brands ha)e become much more market sa))y. $he &ndian
chocolate market is transforming and new players 29ara Eee is planning to
set up base in &ndia4 are entering the market. +ence, considering the low per
capita consumption of chocolates, the future of the industry seems to upbeat.


61
A!!ENDIJ

62
2UESTIONNAIRE
=. 3o you consume chocolatesJ OI9 @ 5-
". &f yes, what all brands do you normally buyJ

?. +ow often do you buy chocolatesJ
25o.4 chocolates per day @ week @ month 2please tick4
A. What brands of chocolates are you aware ofJ
. >lease rank the following attributes in a chocolate on a scale of =(M
according to their importance to youJ 2=(most important, M(least
important4
$aste
Tuality
>ackaging
>rice

63
7la)our
*dd(ons 2Wafers, nuts, etc.4
/rand &mage
. Rank the following brands of chocolates on the abo)e mentioned
attributes.2Rank them on a scale of =(M2=(rated best, M(rated worst4
Chocolate $rands
Attri,utes >erk Kit
Kat
Cadbury's
3airy Milk
9tar *mul 7oreign
/rand
2>ls.9pec.4
*ny -ther
/rand
2>ls.9pec.4
$aste
Tuality
>ackaging
>rice
7la)our
*dd(ons
2Wafers,etc.4

/rand &mage
M. & often pick up a chocolate while & make other purchases. OI9 @ 5-
#. What influenced you to buy the abo)e stated brand2s4J
*d)ertising
Word of mouth
*ttracti)e >ackaging
3ealer
9hop 3isplay
7amily@7riend@Relati)es

64
*ny -ther 2>ls. 9pecify4
;. +ow do you rate the idea of chocolates being made a)ailable at the
following outletsJ 2>lease rate on a scale of =(, where = is most
preferred and is least preferred4.
>an 9hops
9weet 9hops
8ift 9hops
9tationary 9hops
&ce(cream >arlors
7ast 7ood Koints
Milk /ooths
Restaurants
I0clusi)e Chocolate >arlors
Road(side Kiosks
=!. &f a particular brand is not a)ailable with the retailer, you will (
3rop the idea of buying a chocolate
8o to another retail outlet
$ry another 2competitor's4 brand
==. 9tate the ad)ertisements of chocolates that you can recollect. &n order
l of likeability.
=.
".
?.
A.
=". Oou like the ad)ertisements because ofB
$rendy set(up

65
8ood theme, models, music
9eems nearer to life & mood ele)ator
*ny other 2>lease specify4
=?. Oour purchase 2of a chocolate4 isB
-ccasion(led 2say on a /irthday, etc.4
*s a gift
Casual purchase
Inergy snack
*ny other 2>lease 9pecify4
=A. &f you buy chocolates, as a gift, it is forB
9pouse 7riends >arents
Children Relati)es *ny others 2>lease 9pecify4
=. What according to you is the suitable price for a A! gm. chocolate
which is of good 6uality and fla)our2which will be a)ailable for the first
time4.
/elow Rs. =!@( /etween Rs. =!@( to =A@(
Rs. =A@( to Rs. "!@( More than Rs. "!@(
=6. &f your fa)ourite brand is a few Rs. e0pensi)e than it is, you would still
go for it.
OI9 @ 5-
=M. * sale promotion scheme like Rs. "@( off, =! gms e0tra, a candy free,
e etc. would affect your purchase decision.
OI9 @ 5-
=#. &f you want to buy a 9a+er chocolate, say KitKat and if it is not
a)ailable y you would settle for a $arFMoulded chocolate, say 9tar or
Cadbury's 3 3airy Milk.
OI9 @ 5-

66
=;. *n ideal chocolate would taste as followsB(
/itter Wafer enrobed
Caramels, 5uts inside
+igh on 9weet content
*ny others 2>lease specify4
"!. -n an occasion & would like to gift a chocolate to a lo)ed one.
OI9 @ 5-
"=. Most of my chocolate purchases are pre(planned. OI9 @ 5-
"". What si%e of a chocolate do you normally buyJ
= gms. " gms.@?!gms. #! gms.
9uper 9a)er >acks 2=! gms.4 "!! gms.
"?. *re you happy with the kind of chocolate brands a)ailable in &ndia, t
d todayJ
OI9 @ 5-
"A. &f 5o, then Why notJ


". $he price of your fa)ourite brand or preferred brand of chocolate isB
+igh & I0pensi)eMM
Reasonably -K
Cheap
"6. &f the price of your fa)ourite brand is reduced, you will buy more of itJ
OI9 @ 5-

67
$I$"IO#RA!HY
Kotler >hillip, Marketing Management, Millennium edition. 2>rentice hall of
&ndia4.
/usiness today
/usiness World,
/usiness &ndia,
*&M, /rand I6uity,
Iconomic $imes
CM&I reports
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