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Introduction

The chocolate industry consists of establishments mainly engaged in manufacturing
confectionery, chocolate or cocoa products, with or without sugar. Chocolate is
produced from roasted ground cacao beans that are combined with other ingredients
like milk and sugar. Cocoa is a po wder produced from cocoa seeds that have been
roasted, shelled, and ground.

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  . Chocolate consumption is gaining popular ity in the country due to increasing prosperity coupled with a shift in food habits Indian chocolate demand fuels domestic cocoa increases.$   %&%% c The Indian market is thought to be worth some 15bn rupee and has been hailed as offering great potential for Western chocolate manufacturers as the market is still in its early stages.

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")* Chocolate. has started taking the place of traditional sweets. based on recognition of the country¶s huge growth potential for chocolate products and sweets and relative insulati on from the global recession. according to a Data monitor review of the market. "    . that earlier used to be a delicacy. Confectionery makers are expanding their product ranges in India.

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 &%% Chocolate product variations Product Variation Segment Share (%) Moulded Chocolates 50 Count line bars 33 Sugar panned 13 Choco panned 4 .     % +.

îakery and confectionery segment. The Chocolate market in India is estimated to be around 1500 cro res growing at 18-20% per annum. 2010.upenn.wharton. The chocolate market in India is a niche market penetrated largely in urban areas and per capita consumption is low as compared to those in developed countries of the West. http://mofpi. second is Nestle with a market share of 26% and Amul comprises the rest of the market along with a few other domestic players. a miniscule amount compared with average 11 kg consumption in the developed markets like Europe. Monica îehura. 2010 in India Knowledge@Whartonhttp://knowledge. Sweet Surrender: Can Kraft's Cadbury Acquisition Help It Tap the Indian Market?Published: February 25. (accessed on 14 Nov 2010) INDUSTRY OVERVIEW The chocolate industry is among the fastest growing fmcg industries in India though it occupies a relatively low %age of the total fmcg market.Cadbury¶s is the market leader with 70% of the market share.22AM IST. Ministry of food processing industry MOFPI.EThttp://economictimes.com10 n0v 2010 Although there a few players in the Indian chocolate industry. Sweet Deal: îitter competition among confectionery majors 8 Aug. with Nestlé a distant number two. the focus of this assignment is on Cadbury¶s and Nestle.edu/india/article. The per capita consumption of confectionery in India is just 54 grams. The Indian chocolate and confectionary industry has various players in the market but is pretty much dominated by the multinational companies like Cadbury¶s Indiaand NestleIndia.indiatimes. .nic. The global chocolate market is worth $77 billion. 03. Cadbury is the largest confectioner in the country.in .cfm?articleid =4451 14 Nov 2010 Indian domestic brand Amul is the third in line.

5 Star. The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks. Perk. Kolkota and Chennai). the combined company is the world's second largest food company. Induri (Pune) and Malanpur (Gwalior). Cadbury¶s îourneville 5. Eclairs and malted milk additive îournvita have helped it command some 70% of India's US$425 million chocolate market. and 30% of the US$1 bil lion sugar boiled confectionery category. Cadbury has maintained its undisputed leadership over the years Cadbury has maintained its undisputed leadership over the years.Star and 5 star crunchy . Currently. The corporate office is in Mumbai. confectionery and quick meals.upenn. Sweet Surrender: Can Kraft's Cadbury Acquisition Help It Tap the Indian Market?Published: February 25. Cadbury brands such as Dairy Milk. After 60 years of existence. Cadbury India operates in four categories viz. Cadbury began its operations in 1948 by importing chocolates. • Chocolate Confectionery • Milk Food Drinks • Candy and Gum category In the Chocolate Confectionery business. îangalore and îaddi (Himachal Pradesh) and 4 sales offices (New Delhi. OVERVIEW OF THE COMPANIES CADîURY¶S Cadbury India is a fully owned subsidy of Kraft Foods Inc. The chocolate confectionary segment comprises of following brands: Cadburys dairy milk and variants like roast almond.edu/india/article. Mumbai. Cadburys silk . it today has five company-owned manufacturing facilities at Thane. according to marketing research firm ACNielsen. making delicious products for billions of consumers in more than 160 countries.cfm?articleid =4451. In India. fruit and nut and crackle .wharton.10 Nov 2010. 2010 in India Knowledge@Whartonhttp://knowledge. With annual revenues of approximately $50 billion.

nestle milky bar éclairs. 10 Nov 2010 The chocolate and confectionary brands are Nestle Kit±Kat. Nestle munch. of Switzerland. . Nestle éclairs. 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'. Honey Apricot. It produces various brands namely • Milk products and Nutrition • Cooking and Prepared dishes • îeverages • Chocolates and Confectionary http://www. importing and selling finished products in the Indian market. when it began trading as The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited.in . Nestlé India is a vibrant Company that provides consumers in India with products of global standard s and is committed to long-term sustainable growth and shareholder satisfaction. munch pop. îlack Forest and Old Jamaica Éclairs. Mint Crunch. Kit Kat crunchy. integrity and fairness in all aspects of its business and expects the same in its relationships.Perk Celebrations Temptations with flavour variants like Roast Almond Coffee.nestle. Nestlé¶s relationship with India dates back to 1912.A. Nestle milk chocolate. Nestle bar-one. With seven factories and a large number of co-packers.choc. éclairs crunch Gems NESTLE: Nestlé India is a subsidiary of Nestlé S. The Company insists on honesty.

Pearson Education. Kevin lane Keller. Abraham Koshy.2009. using and disposing of the given market offering including monetary. time. p 117 CPV OF CADBURYS CHOCOLATES Value can different for different consumers . Consumer perceptions of Price. Philip Kotler . functional and psychological benefits customers expect from the market offering because of the products .A. Interactive: Interaction between some subject (consumer) and some object (product) . CUSTOMER PERCEIVED VALUE DEFINITION Perceived value is the consumer¶s overall assessment of the utility of the product on perceptions of what is received and what is given. Inc. V. MithileshwarJha. According to Holbrook¶s definition consumer value is an interactive rel ativistic preference experience. personnel and image involved. Journal of marketing 52(July): 2 -22 Customer perceived value = Total customer benefitsTotal customer cost Total customer benefits: Perceived monetary value of the bundle of economic. services. Source Zeithaml. Value represents a trade -off of the salient give and gets components.A south Asian perspective. 13th edition. Marketing Management. Total customer cost: Perceived bundle of costs customers expect to incur in evaluating.Nestle milky bar wafer. energy and psychological costs. Quality and Value: A means ±End model and synthesis of evidence. 1998.

Relativistic: • comparative (involving preference among objects) • personal(varying across people ) • situational(specific to the context) Preferential:Embodies a preference Experience: Resides in the consumption experience .

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Cadburys is considered to be a gold standard of chocolates in India. The reason can be many some of which are described below: • Taste • Price • îrand image • Advertising • Availability • Range Taste/quality: As understood. chocolate buying is a very emotional decision. A common man has a very strong perception of Cadburys chocolates.îuying is done more on the basis of what a person wants than what the person needs. $  -   In case of Cadbury¶s chocolates the value resides mostly in preference and experience. A person likes to buy a bar of chocolate for its great taste and flavour . Cadbury¶s has a long standing presence in the Indian chocolate market and its name is synonymous with chocolate India. . Chocolate buying decision is uniquely emotional and personal in nature.

Pricing is not a big area of concern in the urban areas but in the rural areas where the market is much wider. where the ³pure taste of Cadbury Dairy Milk defines the chocolate taste for the Indian consumer´ (Cadbury India Ltd. Availability Availability of any product is CUSTOMER VALUE HEIRARCHY MODEL FOR CADBURY¶S CHOCOLATE c c c c c . Taking a closer look Price Value for certain customers is price. 2008). 5-star to lure the rural population as well as the ordinary middle class. Brand image and Advertising A strong brand image also increases the perceived value of Cadbury¶s. with their innovative and creative ad campaign¶s they strengthen their base every time .. If a bar of Cadbury¶s chocolate is sold at a low price compared to others it would have a greater perceived value. Cadbury¶s has always been a very strong brand in the c hocolate segment. low priced chocolate would have a deeper penetration. Advertising plays a pivotal role in defining a customer perceived value. Cadbury¶s has launched a number of low price pa cks of its various brands like Perk. For a common man chocolate is synonymous with Cadbury¶s.Cadbury Dairy Milk is their ³Gold Standard´ for chocolate.

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