Rajagiri college of management and applied

sciences

PERSONALITY DEVELOPMENT AND MANAGEMENT SKILLS

A Study on Social Media Marketing adopted in Chocolate industry with

respect to Cadbury.

Submitted by

FATHIMA MINA

191265

Under the Guidance of

Ms. ANILA VARGHESE

In partial fulfillment of the requirements for the award of the Degree of

Bachelor of Business Administration

Mahatma Gandhi University, Kottayam

2019-2022
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CERTIFICATE

This is to certify that the mini project titled "A Study on Social Media Marketing in
Chocolate Industry with respect to Cadbury” submitted to Mahatma Gandhi University
in partial fulfillment of the requirements for the award of the Degree of the Bachelor
of Business Administration is a record of the original work done by (name) under my
supervision and guidance and that this project work has not formed the basis for the
award of any Degree/ Diploma/ Fellowship or similar title to any candidate of this or
any other University.

Ms. ANILA VARGHESE Ms. ANILA VARGHESE

Project Guide Head of Department

Viva Voce Examination held on ……………………. ………..

Internal Examiner External Examiner

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 DECLARATION

I hereby declare that the Mini Project entitled " A Study on Social Media
Marketing adopted in Chocolate Industry with respect to Cadbury" submitted
in partial fulfillment of the requirements for the award of the Bachelor Degree of
Business Administration is a record of original research work done by me under
the supervision & guidance of Ms. Anila Varghese and the Industrial Project has
not formed the basis for the award of any Degree/Diploma/ Associate ship /
Fellowship or similar title to any candidate of this or any other University.

Place : Kakkanad

Date :

(name)
 ACKNOWLEDGEMENT

I thank The Almighty for showering his choicest blessings on me for the successful
completion of the project work undertaken by me.

I express my sincere thanks and gratitude to _______________ Principal, for his

constant encouragement, profound advice and supervision of this research project.

I also express my sincere thanks Ms Anila Varghese, Head of Department of

Management and my Guide for her esteemed guidance, expert observations and
timely advice on the mode of organization and presentation of the research and also
I express my sincere thanks Ms. Megha Mohan, Class Coordinator.

I thank my beloved parents, siblings and friends whose love and encouragement
has helped me in completing this project.
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EXECUTIVE SUMMARY

The study is conducted -----------------------------

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 INDEX

SL. CONTENTS PAGE

NO. NO.

1 COMPANY PROFILE 9

1.1 Brief History of the Organization, 10

Current Board of Directors

12
1.2 Mission/Vision Statement
/Quality policy followed

1.3 Business Process of the Organization- 14

Product Profile
1.4 Customers of the Organization – Levels of 15
Operations (Global/National/Regional)

1.5 Competitors of the Company 16

22
1.6 Strategies
Business Strategy , Pricing Strategy ,
Management Strategy

1.7 CSR Activities 25

1.8 Export / Import 27

1.9 Collaborations and Expansion Plans 28

1.10 SWOT Analysis of the Company 29

1.11 Organization chart 31

2 AN OVERVIEW OF THE INDUSTRY 32

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 2.1 Brief History of the Industry

34
2.2 Business Process of the Industry

35
2.3 Market Demand and Supply – Contribution
to GDP – Revenue Generation

38
2.4 Level and Type of Competition – Firms
operating in the Industry

40
2.5 Pricing Strategies in the Industry

41
2.6 Industrial Performance
(Global/National/Regional)

48
2.7 Prospects and Challenges in the Industry

3 DISCUSSION

3.1 Objective Asessment – Observations

by the candidate

3.2 Specific Learning Outcome

3.3 Contributions by the student group

4 FINDINGS

BIBLIOGRAPHY
CHAPTER I

COMPANY

PROFILE
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CADBURY

Cadbury, formerly Cadbury's and Cadbury Schweppes, is a British multinational

confectionery company wholly owned by Mondelez International since 2010. It is
the second largest confectionery brand in the world after Mars. Cadbury is
internationally headquartered in Uxbridge, west London, and operates in more than
50 countries worldwide.

BRIEF HISTORY

Cadbury chocolate has been an integral part of Birmingham’s heritage, dating all the
way back to the very first store in 182In 1824 John Cadbury opened his first store at
93 Bull Street in Birmingham city centre, selling tea, coffee, cocoa and drinking
chocolate. Drinking chocolate was seen as a healthier alternative to alcohol, which
was deemed a negative influence on society by fellow Quakers. In 1931, John
purchased a four-storey factory on Crooked Lane. By 1842, John was selling almost
30 varieties of drinking chocolates and cocoa.

As John’s trade continued to grow, he asked his brother Benjamin for a helping
hand and Cadbury became known as Cadbury Brothers. The Cadbury brothers’
business continued to perform admirably, and in 1947 they moved to a larger
factory on Bridge Street which had access to all major ports in Britain through a
private canal port. Due to ill health, John Cadbury retired in 1861 and passed the
company on to his other brother, George and Richard.

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Following the firm’s first major breakthrough with Cadburys’ Cocoa Essence, and
developments in 1875 saw the first Cadbury Easter egg. By 1897, the brothers had
also manufactured their first milk chocolate bar. George developed the Bournville
estate, a model village designed to give the company's workers improved living
conditions. Dairy Milk chocolate, introduced in 1905, used a higher proportion of
milk within the recipe compared with rival products. By 1914, the chocolate was the
company's best-selling product. Cadbury, alongside Rowntree's and Fry's, were the
big three British confectionery manufacturers throughout much of the 19th and
20th centuries. Though Cadbury is now owned by American confectionary giant
Mondelez International, the suburb of Bournville will always be at the heart of the
company.

NOTABLE MILESTONES OF CADBURY DURING ITS EARLY TIMES

 1854 : Cadbury was granted its first royal warrant from queen Victoria.
 1905 : Cadbury first produced Diary Milk ,its most popular product of all time.
 1906 : production of Bournville cocoa.
 1908 : production of Bournville chocolate.
 1915 : production of milk tray.
 1920 : production of flake.
 1955 : Cadbury aired its first television advertisement of Diary Milk. Cadburys
television advertisements are among the highly regarded advertisements in the
history.

BOARD OF DIRECTORS

Chairman and CEO of Mondelez International : Dirk Van De Put

Board members of Cadbury India :

Designation Name
Managing Director and CEO Anand Kripalu
Non-executive director Radhakrishnan Menon

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Executive director Atul Bhatia
Executive director Rajesh Garg
Executive director Rajesh Ramanathan
Executive Director Narayan Sundararaman

MISSION AND VISION OF CADBURY

Vision : “Working together to create brands people love”

A vision statement reveals the ideal image of the organization in the future. Vision is
an important point in corporate strategic plan and is bound to be on time. It
communicates both the value and purpose of organization. Vision is intended to give
directions to employees about how they should behave and inspires them to give
their best. A vision when shared with customers can help shape a customer’s
understanding of why they should work with the organization.

Mission : “Says simply, ‘Cadbury means quality’; this is our promise. Our reputation is
to built upon quality; our commitment to continuous improvement will ensure that
our promise”

Mission statement defines an organizations primary objectives and its key purpose.
Its prime function is internal – to define the key measure or measures of the
organization’s success – and its prime listeners are the leadership team and
stockholders. Mission statements are the starting points of an organization’s strategic
planning and goal setting process. They try to assure and focus the attention on both
the external and internal stakeholders to understand and know what organization is
trying to accomplish.

QUALITY POLICY

 In a competitive business environment it is the quality of customer service that

will enable an organization to achieve commercial success.

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 Cadbury adopted the quality assurance for the products which are introduced to
the customers by maintaining a “right first time” culture that constantly ensures
the quality and food safety, where every employee understands the responsibility
given to them and they are made accountable for their activity.
 Quality management system is audited periodically to improve the process to
deliver their policy and standards.
 In 1888, the Cadbury brothers revolutionized the whole of the British cocoa
business, because they were not satisfied with quality of cocoa beans. Until that
time English cocoa had been heavily adulterated with starch substances like potato
flour or sago to mask the excess cocoa butter. The cocoa drink, was described as a
“comforting gruel” by George Cadbury himself. The quality of the chocolates made
by the company following the introduction of the cocoa press was such that in the
1870s, Cadbury broke the monopoly which French producers had previously
enjoyed in the British Market. Cadbury was really good at adding value in the
production process in order to maintain their competitive advantage.
 Cadbury follows a quality system which helps them to provide the quality product
to the customers. Cadbury cleans and roasts its cocoa beans with extra care before
it is used for further manufacture of its products.
 Product quality : each of the Cadbury diary milk contains half pound glass and a
half full of fresh liquid milk. It is free from the artificial colour, salt and soya.
 Cadbury also provides for their customers the products nutrition on the website
and on the product package. These features have encouraged the customers to buy
the Cadbury dairy milk chocolate as everybody want to enjoy eat a quality
chocolate.
 The employees which are given responsible for the activities in the organisation,
are made responsible for the corrective measures. This has made it is easy for the
employees to understand their mistakes and helps them to understand the actions
required to follow while doing the activities.
 In Cadbury quality system is given equal importance because the products are

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ultimately made for the customers in the market. The quality system is checked
and updated continuously so as to make sure that they are not left behind in the
market. The quality in the product is ensured before it goes to the market to the
customer.

PRODUCT PROFILE OF CADBURY

Cadbury offers a wide range of products and has a strong depth and width of the product
mix. There are different products that Cadbury offers in different countries and the
decision to sell which product in what country is based on the Demographic factors .On a
broader level, the product mix of Cadbury consists of Chocolates, Biscuits, and
Beverages.

1) Chocolate bars :

The different kinds chocolate bars provided by Cadbury are : 5 star, Perks, Flakes,
Diarymilk, Diarymilk silk, Bournville, Diarymilk crackle , Marvellous, Diarymilk Oreo,
Diarymilk silk, Diary milk Oreo silk, diarymilk silk bubbly, Diarymilk tropical mango,
Diarymilk butterscotch crunch, Temptations, Cadbury chocobix etc…

2) Chocolate bags and boxes :

Nutties, Celebrations, Celebrations Almond Magic, Celebrations Favourites, Celebrations

Mini, Celebrations Raisin Magic, Celebrations Rich Dry Fruit, Choclairs, Choclairs Gold,
Choclairs Rich Brownie, Dairy Milk Home Treats, Gems, Glow, Monster Gems, Perk Home
Treats, 5 Star Home Treats, Dairy Milk Shots, Dairy Milk Shots with Friends, Silk
Pralines, Silk Miniatures Gift Box, Shots

3) Beverages :

A beverage is any drink other than water. Cadbury offers a wide variety of powders for
making chocolate beverages. Some of them are Bournville cocoa, Choc shake, Freddo
drinking chocolate, Oreo hot chocolate, Wispa hot chocolate, Highlights Bournville,

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Highlights fudge,Bournvita women, Bournvita lil champs, Highlights milk chocolate, Hot
chocolate in an instant etc…

4) Biscuits :

Cream Pie, Oreo Original, Oreo Choco Crème, Oreo Orange Crème, Oreo Strawberry
Crème, Oreo Lemon Crème, Oreo Golden, Bourn Vita Chocolate Cookies, Oreo Cadbury
Dipped etc.. are some of the biscuits provided by Cadbury.

CUSTOMERS OF THE ORGANIZATION - LEVEL OF OPERATIONS

Customers of Cadbury are from all segments & people from all age group consume
chocolates, biscuits & beverages but it is the growing middle income group as well as the
youngsters who form the major consumer segment.

GLOBAL LEVEL OF OPERATIONS

Setting strategy at a global level and then executing locally has always been the business
model at Cadbury, ever since the British confectionery company sent its first recipe and
ingredients on a boat to Australia in 1900. Cadbury’s Global brand director Ben Wicks
described their global community as a “commonwealth of the willing”, drawing on the
company’s heritage as a 194-year-old ethical business with roots across the British
Commonwealth. One of the most interesting quirks about Cadbury is that if we go to
Australia we feel like it’s Australian. And now if we go to New Zealand it’s the same.
South Africa, the same,” .“People feel like they own it. Because it’s chocolate, it’s
emotional. People feel like they have a personal relationship with it.” This is the
limelight of Cadbury. Cadbury has high brand awareness and is embedded into the
contemporary culture of markets like the UK, Australia and New Zealand. But there is
still a job to be done to create the same level of saliency and affection in developing
markets. The strategy in areas of South East Asia and the Middle East is to connect with
consumers in a meaningful and purpose-led way, which focuses on the taste of the
chocolate. This taste element is crucial in markets where Cadbury represents an

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expensive option compared to the local alternatives. To justify the price, Cadbury
focuses on the quality of the ingredients and the fact that Dairy Milk, it’s “gold standard”
product, contains a glass and a half of milk. Wicks explains that while the ‘glass and a
half of milk’ symbol is highly memorable, over the past couple of years its meaning has
become latent.

NATIONAL LEVEL OF OPERATIONS

Cadbury India began its operations in 1948 by importing chocolates. It was incorporated
on 19 July 1948. It is the market leader in the chocolate confectionery business with a
lion’s share of over 70%.The corporate head office is presently situated at Pedder road,
Mumbai, under the name of "Cadbury House". This monumental structure at Pedder
Road has been a landmark for the citizens of Mumbai since its creation. Since 1965
Cadbury has pioneered the development of cocoa cultivation in India. For over two
decades, Cadbury has worked with the Kerala Agricultural University  to undertake
cocoa research.[ It now has manufacturing facilities
in Thane,Pune, Malanpur, Hyderabad, Bangalore and Baddi and sales offices in New
Delhi, Mumbai, Kolkata and Chennai. Currently, Cadbury India operates in five
categories – Chocolate confectionery, Beverages, Biscuits, Gum and Candy. Its products
include Cadbury Dairy Milk, DairyMilk Silk, Bournville, 5-Star,Temptations,
Perk, Eclairs, Bournvita, Celebrations, Gems, Bubbaloo, Cadbury Dairy Milk Shots,
Toblerone, Halls, Bilkul, Tang, and Oreo.

REGIONAL LEVEL OF OPERATIONS

 Cadbury’s products are widely available in all the parts of Kerala.

 It is available from all mini-shops to mega supermarkets in the state and is highly
popular among all the categories of people.
 Cadbury is casually used as a snack , to quench the sweet desire, as a gift and is
also used widely among people during various festive occasions and parties.

COMPETITORS OF CADBURY

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Cadbury is among the most iconic confectionery manufacturers in the world. The firm,
identified for its Dairy Milk Bar, is now part of Mondelez International. They acquired
Cadbury for $18.9 billion in 2010, Mondelez International enjoys sturdy market share
positions around the globe. The firm faces sturdy competitors from many corporations in
North America and around the globe. To sum upCadbury has a long list of competitors but
the high opponents from whom Cadbury faces tight competition are Mars, Hershey’s and
Nestle.

1) Mars

Due to the enormous product brand and their quality Mars is considered as one of the top
Cadbury competitors. Mars is considered as a top manufacturer of confectionary products,
it was founded in the year 1911 and headquartered in the United States. Apart from
confectionery products, it is also into production of pet food and other products related to
food. Mars confectionary products include Mars bars, M&M’s, Skittles, Snickers, Milky Way
bars and Twix. Mars food is devoted to providing better food quality for the buyers. Their
production concentrates on quality, taste and at affordable rates. Mars production runs
across 12 manufacturing sites and has about 2,000 employees. Mars produces about 13
food brands that are available in more than 30 countries.

In 2018, Mars had a market share of 30% in the United States for the chocolate market.
Mars was the sixth-largest private company in America in 2019, with sales of $37 billion.

Along with competing against Mars for the chocolate market share, Cadbury now competes
against the giant for share in the global gum market thanks to Mars' acquisition of
Wrigley's in 2008. Mars $23 billion acquisition gave it control of brands such as Extra, Orbit
and Eclipse.

2) Hershey’s

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Hershey’s is a popular American chocolate company that has been into the market since
1894. It is headquartered in Pennsylvania and considered as one of the largest
manufacturing company in chocolate. Hershey’s chocolate is available across the United
States. Hershey’s production of chocolate mainly focuses on four main flavors which are
milk, white, dark and gold.Hershey’s chocolate productions are span across eight factories
across the United States. They have a huge number of products like dark cocoa, spread
snacksters, Licorice candy, dark chocolate peanut butter cups, cookie layer crunch bar,
raspberry mints, and many more. Hershey’s chocolates are manufactured using 100%
farm fresh milk which makes the milk chocolate so well. Due to their huge products and
their taste, Hershey’s is considered as one of the top Cadbury competitors.

In 2018, Hershey's had a market share of 44% in the U.S. for the chocolate industry. The
company has many well-known brands including Hershey's, Reese's, Jolly Rancher and
Twizzlers. Hershey's still gets more than 80% of its annual revenue from the North
America market. Hershey's is in a unique position, as it is both a competitor and a
distributor of Cadbury products. The long-time rights deal led many to believe that
Cadbury and Hershey's would eventually merge, but that has not been the case. Nestle
and Cadbury did at one time attempt a joint bid for Hershey's, but it ultimately fell
through.

Hershey's caused an uproar when it sued several importers of Cadbury products from the
U.S. Hershey's, which uses a different recipe than the British chocolatier, and many former
British residents want the authentic version. Cadbury's chocolate in the United Kingdom
lists milk as the number one ingredient, while the American version made by Hershey’s
has sugar as the number one ingredient.

The case of Hershey's and Cadbury being rivals took a big turn due to a licensing
agreement set back in 1988. In 1988, Hershey’s paid $300 million for the rights to

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Cadbury’s U.S. operations. Cadbury agreed; at that time, it saw no chance to compete
against Hershey's and Mars, which controlled a combined 70% of the market.

3) Nestle

Nestle is among the largest food companies in the world,

operating in 189 countries across the globe. It is headquartered in Switzerland. Nestle
have around 2000 brands and their main products include medical food, baby food,
bottled water, breakfast cereals, confectionery products, coffee, tea and many more.
Nestle milk chocolate , is a chocolate bar that is produced by Nestle. Nest milk chocolate is
being sold in many countries. It mainly focuses on increasing the quality of their food
products which can contribute to a healthier life.

Due to their wide reach and focus on quality for their food products, it is considered as
one of the top Cadbury competitors.

Nestle's confectionery segment was its sixth-largest in 2019. With a sales of $7.9 billion
globally, Nestle held the number three market share position. Sales of the company's
chocolate products totaled nearly $6 billion, including $2.5 billion from the
Americas.Similar to its deal with Cadbury, Hershey's also licenses several brands from
Nestle for U.S. distribution rights. This includes KitKat and Rolo, two Nestle brands.The
company's chocolate market is one of its smallest, but it was good enough for a 10%
market share in the U.S. Nestle has grown through many acquisitions that have given it
control of brands that include KitKat, Smarties and Gerber baby food.

Company swot analysis of cadbury and nestle

CADBURY NESTLE

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STRENGTHS  The largest  Globally recognized as

globalconfectionery one of the largest and
supplier, with9.9% of powerful food producer,
global marketshare. covering almost every
 High financial strength country.
 Strong manufacturing  Quality is a vital element
competence, established regarding.
brand name and leader  Strong internal growth
ininnovation. and emphasis on
 Advantage is that it is innovation internally.
totally focused on  Powerful brand
chocolate,candy, chewing positioning in the
gum,unique consumers’ mind.
understanding  The decentralized culture
ofconsumer in these in the organization
segment. encourages employees.
 Successfully grown
through its acquisition
strategy

WEAKNESS  The company is  The immense

dependant on the
confectionery and
beverage market.
 Other competitors have 
greater international
diversification portfolio of
the firm makes it
impossible to run every
division smoothly.
Retailers do not get to set
high margin to increase

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experience.
OPPURTUNITIES   Invest in snacks that
Expand into new markets.
 Increase share through
targeted acquisitions.
 Key to survival within the
FMCG market is
increasing efficiency and
reducing costs.
Innovation is key driver.
THREATS The increase in costs
particularly for energy,
transport, packaging and
sugar.
 Competitive pressure
from other branded
suppliers.
 Social changes.
sales.
 Transportation as well as
storage is a problem.
would further diversify
its product.
Provide incentives to the
retailers toincrease sales
volume.
 Middle class share in
most of the economies are
growing .
 Open a cafe that would
exclusively provide Nestle
products.
 Pollution during
manufacturing should be
regarded strictly.
 The company has no close
history with the FDA.
 Tough market with a
tougher competitor
forgaining market share.
 Market is quite mature
and the competitors
specialize on a certain
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product that may hit hard
on Nestle.

Other competitors of Cadbury are :

 Kraft foods
 Lindt
 Ferrero
 Dove
 Godiva
 Kinder
 Milka
 Ghiradelli

BUSINESS STRATEGIES
1) To increase the width of chocolate consumption, through low price point packs and
distribution focus.
2) Increase depth of consumption, targeting regular chocolate consumers through
generating impulse and a dominant presence at point of sale.
3) Maintain image leadership through a superior marketing mix.
4) Be a significant player in the gifting segment, through occasion linked gift packs.
5) Build critical mass in the sugar business by introducing value added sugar
confectionery products.

PRICING STRATEGIES

Cadbury believes that great quality comes with a price. The different pricing strategies
used by Cadbury are mentioned below

 SKIMMING PRICE : in this , the prices will be set very high to take advantage of some
peoples desire for a new product or design at any price. Skimming is very effective if

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the demand is inelastic. E.g. oreobiscuts, Cadbury silk, bournvile are some products
which are being sold in the market effectively with this strategy.

 ECONOMY PRICE : Cadbury comes out with different variants of their main products
to reach out to a large audience base. Cadbury dairy milk is offered in different sizes
and is priced accordingly just so as to cater to different customer segments.Products
like Perk, Five Star, and Eclairs are also priced economically.

 BUNDLE PRICING: With bundle pricing, Cadbury sells multiple products at a lower
rate that consumers would get if they purchased each item individually. For e.g.
during festive times, Cadbury offers different products bundled together at a
discounted price.

 COST PLUS PRICING : Pricing methods which are based on the cost structure of
Cadbury that are favored by accountants because they are supposedly more accurate
and reliable is known as cost plus pricing. Cadbury is trying to maximize it profits.
This method works successfully because all costs need to be accurately accounted.

 POSITION PRICE : Cadbury uses this method to position prices that are set which
reflect the consumers view of the chocolate bean.

 COMPETITIVE PRICING : In this method Cadbury sets a price roughly in line with
their competitors. This will depend on the type of competition that exists for the
chocolate bean. It is particularly the number of seller and the number of buyers.This
process works reasonably well if the cost structures of the companies are roughly
similar.

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MARKETING STRATEGIES

1) Growing with the Emerging Markets : Cadbury continuously modifies their products
to fulfill the requirements of all segments of consumers. This strategy has lead them
to a growth of above 20% annually for the past three years.Revenue of the company
grows with the emerging markets.
2) Growing with the market : To attract the broader range of consumers is the main
target the Cadbury. They created a base range of their acceptable chocolate brands at
more reasonable and affordable price. They also introduced the gift range products
for the customers segments with high-income group.
3) Functional advantages : Cadbury Bournvita was launched in India in 1948 and it
always required providing nutrition that helps in the development and growth. Today
the natural goodness of milk, chocolate and malt is prepared with vitamins A, B1, B3,
B6, B12 and C, plus protein, iron, calcium, manganese, zinc, and folic acid. It is also
known as “a cup of confidence”.
4) Affordable luxury : Cadbury has increased their presence in the candy in the form of
halls and Cadbury dairy milk Eclairs. Eclairs became more popular in the markets
with a hotter climate. The consumers find the delicious taste of chocolate in the
middle that easily melts in the mouth and not in the hot climate. It is also an
affordable chocolate for everyone. The new Eclairs Crunch is with more crispy
caramel shell for hot climatic conditions.

 The market place includes different segments of customers having different needs
and wants. In order to cater to the needs of each of these segments more desirably
and attractively , Cadbury has divided its market into different segments :

 Geographic Segmentation: It is to divide the market on the basis of its location,

regions, towns, city or country.

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 Demographic Segmentation: It is most common basis of market segmentation.
This factor is directly related to the demand of the product and it is easy to
measure. It can be classified as age group of consumers, gender, Life style, income
of family etc.
 Psycho graphic Segmentation: it divides the consumer on the basis of social class,
lifestyle of consumers or personality. This helps the company to examine the
quality that how a person thinks, feels, and behaves.
 Behavioral Segmentation: It divides consumers on the basis of their attitudes,
knowledge, response or uses to a product.

 Considering all the above factors, Cadbury has targeted different segments within the
market as:
1) Break segment – some products are consumed during short breaks with coffee and tea,
for example snack range and Perk.
2) Desire segment – under this segment products are purchased on desire, for example
Cadbury’s Dairy Milk, temptation etc.
3) Take home segment – this segment expresses the products that are purchased from
supermarkets and taken home for consumption, for example Bournvita.

CSR ACTIVITIES OF CADBURY

Cadbury is one of the global companies that successfully combine ethics and economy,
which is a contemporary need to ensure business continuity. Cadbury’s CSR proves that
adherence to corporate responsibility have positive impact on the economy of the
business. The company reflects the use of ethics in economy as strategically meditated.
In turn, Cadbury’s reputation becomes stronger and its financial performance, better.
Cadbury adheres to corporate social responsibility by addressing issues that impacts
business operations. The company exercise keen commitment to the business’ impact on
society and the environment by the implementation of voluntary codes of conduct and
internal performance standard.

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MIGRATORY BIRDS STOP OVER AT BANGALORE

As a part of Cadbury India’s continuous efforts to increase water conservation , their

Bangalore factory has constructed a check dam to store water. This dam acts as a major
ground water replenishing source for the bore wells in the factory and surrounding
community. It is a major stop over location for some of the migratory birds also.

PIONEERING COCOA CULTIVATION IN INDIA

Cadbury’s efforts in cocoa pioneering have increased cocoa productivity and touched the
lives of thousands of farmers. Since 1974 Cadbury has pioneered the development of
cocoa cultivation in India. they have worked with the Kerala university to undertake
cocoa research and release hybrids that improve the cocoa yield.

INSTALLATION OF SOLAR POWERED STREETLIGHTS

Rising energy costs and three hundred sunny days per year inspired the Bangalore
factory to install 28 solar powered street lights. This has helped in reducing annual
carbon dioxide emission by ten ton annually, playing a part in the effort to reduce global
warming. The Karnataka state pollution control board has honored the Bangalore
factory with the “Parisara Premi” award, to appreciate their efforts.

SETTING UP OF A NON FORMAL SCHOOL IN BADDI

Cadbury has setup a non-formal school as a part of Cadbury’s commitment to create

prosperous and healthy communities. With the efforts of the Baddi factory team
members , over 50 children of the migrant workers , living in and around Baddi were
given daily access to education. This was the first phase of the SAHYOG project in
partnership with NGO RUCHI. The project reaches out to over 400 poor and
marginalized families in Sandholi village near the Baddi factory , they provided services
apart from education also.

GURIKHA PROJECT

In 1999, the WE community initiated a program under the banner “nutrition” , at the
Malanpur factory. WE focused on the healthcare and nutrition in the nearby villages of

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Gurikha. A nursery school was started and key improvements were made in the primary
school.

DEARCADBURY.COM

Cadbury launched a car website called dearcadbury.com which  aims to inform and
engage the consumers about ethical sourcing, responsible consumption and the
environment. The site features Cadbury's 2007/08 corporate responsibility and
sustainability report, which highlights the sustainable activities that the confectionery
giant has integrated within its mainstream business.

The site revealed that the company has reduced carbon dioxide emissions by almost 4%
up to date and that they are aiming to reduce emission by 10% by 2010.The company
committed to 50% absolute reduction in carbon emissions by 2020.

EXPORTS AND IMPORTS

 The major ports for Cadbury Chocolate export from India are ICD LONI (3.9387
USD Million)and Nhava Sheva sea (2.4936 USD Million).
 There are about 7 top exporting ports in India which trade Cadbury Chocolate
from India, Nhava Sheva Sea exports the majority of Cadbury Chocolate
shipments with a share of 62.0% , followed by ICD Loni with 16.0%. Moving to
top importing ports for Cadbury Chocolate from India, the male port solely
imports 40 shipments of Cadbury
 Chocolate from India and holds the largest share of 47.0%. The top importing
ports for Cadbury from India are Hong Kong , Jebel Ali and Dubai.

Ports for exports from India

ICD Loni
Nhava Sheva
Sea

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COLLABORATIONS

1) RITZ AND LU

These new innovations were Cadbury’s biggest launch of 2014

and brought two new flavour combinations to the category. it
brought together LU sweet biscuits and Ritz savoury crackers
with Cadbury Dairy Milk milk chocolate. it was launched with a
two week communications campaigning worth £7.5 million. it
was a seven-week campaign driving awareness and
understanding of the new snacking products. The idea behind
the campaign was to bring people "moments of joy”.

2) OREO

Cadbury collaborated with Oreo in 2012. The Cadbury Dairy Milk with Oreo chocolate
was available in the markets from 8 October , it contains a creamy filling with chunky
pieces of the cookie-based snack. It was being backed by a digital campaign which
targeted the 1.3 million social media fans of Cadbury Dairy Milk and the 1.5 million for
Oreo as well as spanning the chocolate maker’s long-term communications platform
Joyville. Combining these two extremely popular brands resulted in an exciting
opportunity for retailers to help boost sales and capitalize on the phenomenal reputation
of each brand individually. Their aim was to boost sales over the festive period with the
launch. It cites its chocolate business, which accounts for 27 per cent of the company’s
sales, as key to delivering growth during its first year of trading.

3) DAIM

Cadbury Dairy Milk with Daim came on the back of significant success of Cadbury Diary
Milk with Oreo which generated over £10m of sales within a short span after its launch .
it was a blends of Cadbury Dairy Milk with crunchy almond caramel pieces. the two

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brands collaborated in 2013. Cadbury Dairy Milk with Daim aimed to build on this
success and was worth £4 million after just 12 weeks in the market, and both have
successfully attracted a younger generation of consumers to Cadbury tablets.

EXPANSION PLANS

 Planning to increase franchise :

Cadbury expects strong growth in India in future ,it is planning to increase the
franchise of its existing brands and also to continue to explore new product
opportunities. It is also looking for more opportunities in the region.
 To increase the volume of premium products :
Cadbury is planning to bring in a larger portfolio of premium products to boost its
prospects in the urban centre. The main motive behind this is to lure the health
conscious customers, who prefer lower intake of sugar.
 To expand rural operations :
Cadbury has chalked out a strategy to expand its rural operations as chocolate
penetration in the country doubles with rising consumption. They have identified
twenty thousand villages in nine states where it will deploy its distribution
machinery to market its products.

SWOT ANALYSIS

1)STRENGTH
 World’s leader in chocolates
 Wide distribution channel
 Best manufacturing
 Has many strong brands
 High quality products
 Blessed with a fantastic brand loyalty
 Strong branding
 Positioning as gift

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 Promotions
 Indian connect
 Placement and distributions

2)WEAKNESS
 A few controversies regarding worms, advertising etc.. made international
news.
 A few instances of product recall hampered Cadburys brand image

3)OPPORTUNITIES
 To increase its reach and penetration in untapped markets.
 To increase its reach in rural markets.
 To acquire healthy competition can boost market dominance.
 Diversification of product range into related food segments.
4)THREATS
 Health consciousness among people can reduce intake of chocolates
 Increase in cost of raw materials.
 Inflation can cause reduction in sales
 Higher competition from international and local chocolate brands can affect
Cadbury’s market share.

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ORGANIZATION CHART OF CADBURY

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CEO

Chairman

Board of
directors

Legal
Chief financial Human Sales and Science and
department
officer resources distribution technology
and secretary

Branch
manager

Area sales
manager

Sales engineer

Area sales
interim

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CHAPTER – 2
INDUSTRY PROFILE

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HISTORY
The history of chocolate began in Mesoamerica which dates back to 450 BC. Cultivation,
consumption, and cultural use of cacao were extensive in Mesoamerica. The word
chocolate emerged from the Spanish word “Xocolatl”. The cocoa beans had so much
value and were used as a form of currency. The Aztecs believed that cocoa beans were
the gift of God of wisdom. Through out much of history, chocolate was revered as bitter
beverage , not a sweet edible treat. It was served as bitter liquid mixed with spices or
corn puree.

After its arrival to Europe in the 16th century , sugar was added to it and it became
popular throughout the society, first among the ruling classes and then among the
common people.

In the 20th century , chocolate was considered essential in the rations of United States
soldiers during war.

Chocolate is prepared from the fruit of the Theobroma cacao, a tropical tree whose name
means "food of the gods” in Greek, these tress were native to Central and South America.
The fruits are called pods and each pod contains around 40 cacao beans. The beans are
dried and roasted to create cocoa beans. It’s unclear exactly when cacao came on the
scene or who invented it. The history of chocolate can be traced to the ancient Mayans,
and even earlier to the ancient Olmecs of southern Mexico. It’s thought the Olmecs used
cacao to create a ceremonial drink. However, since they kept no written history,
opinions differ on if they used cacao beans in their concoctions or just the pulp of the
cacao pod.

When chocolate first came on the scene in Europe, it was a luxury only the rich could
enjoy. But in 1828, Dutch chemist Coenraad Johannes Van Houten discovered a way to
treat cacao beans with alkaline salts to make a powdered chocolate that was easier to mix
with water. The process became known as “Dutch processing” and the chocolate
produced was called cacao powder or “Dutch cocoa.” Dutch processing and the chocolate

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press helped make chocolate affordable for everyone. It also opened the door for
chocolate to be mass-produced.

Chocolate arrived in Florida on a Spanish ship in 1641. The first American chocolate
house was opened in Boston in 1682. By 1773, cocoa beans were a major American
colony import and chocolate was enjoyed by people of all classes. During the
revolutionary war, chocolate was provided to the military as rations and sometimes given
to soldiers as payment instead of money.

BUSINESS PROCESS – PRODUCT PROFILE

1) DARK CHOCOLATE : Dark chocolate is a form of chocolate containing cocoa solids,

cocoa butter, without the milk or butter found in milk chocolate. D ark chocolates hold a
healthy reputation compared to other kinds of chocolates.Dark chocolate has been around
for over 3,000 years.

PROVEN HEALTH BENEFITS OF DARK CHOCOLATE

1. Very Nutritious
2. Powerful Source of Antioxidants
3. May Improve Blood Flow and Lower Blood Pressure
4. Raises HDL and Protects LDL From Oxidation
5. May Reduce Heart Disease Risk
6. May Protect Your Skin From the Sun
7. Could Improve Brain Function

NUTRITION CONTENT OF DARK CHOCOLATE

Calories – 604, Protein – 7.87, Fat – 43.06g, Carbohydrates – 43.36g , Dietary fibre –
11g, Sugar – 24.23g , Iron – 12.02mg, Magnesium – 230.00mg, Zinc – 3.34mg.

2) MILK CHOCOLATE : It is a solid chocolate made with milk added in the form of
powdered milk, liquid milk, or condensed milk.

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3) WHITE CHOCOLATE : it is a chocolate confection made from cocoa butter, sugar and
milk solids. White chocolate does not contain cocoa solids, which are found in other
types of chocolate. It is characterized by a pale ivory color.

4) RUBY CHOCOLATE : it is a type of chocolate created by Barry Callebaut.. The variety
was in development from 2004, and was released to the public in 2017. The chocolate
type is made from the Ruby cocoa bean, resulting in a distinct red colour and a different
flavor, described as "sweet yet sour".

5) RAW CHOCOLATE : it is a chocolate that has not been processed, heated, or mixed
with other ingredients. It is sold in chocolate-growing countries, and to a much lesser
extent in other countries, often promoted as healthy.

6) COMPOUND CHOCOLATE : is the name for a confection combining cocoa with

other vegetable fat, usually tropical fats or hydrogenated fats, as a replacement for cocoa
butter. It is often used for candy bar coatings. In many countries it may not legally be
called "chocolate".

7) MODELING CHOCOLATE : it is a chocolate paste made by melting chocolate and

combining it with corn syrup, glucose syrup, or golden syrup. It is primarily used by cake
makers  to add decoration to cakes and pastries.

DEMAND AND SUPPLY

The global demand for chocolate has risen by double digits since the recession in 2008
and is forecasted to continue to grow, with a CAGR of 3% by 2021. A significant portion
of this demand increase is the outcome of developing taste of global consumers for dark
chocolate, particularly in light of its potential positive health benefits. But the demand
for dark chocolate has a dual impact: It increases the demand for chocolate products
and for cocoa since dark chocolate requires more cocoa beans per ounce than milk
chocolate. North America have always been big consumers of chocolate products but
other regions, such as the Asian-Pacific region are also adding to the demand as their
interest in chocolate increases.

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 It is reported that cocoa and chocolate market size is to hit USD67.22 billion till 2025;
which will result in a tremendous increase in demand for chocolates.
 In India chocolate market is growing witnessing a CAGR 12.8% over the forecast
period.
 Cocoa output is dominated by ivory coast , which accounts for more than 30% of total
output, while Ghana and Indonesia combined account for a further 35%.
 In the recent times there has been an increasing demand for organic and sugar free
chocolates duet increasing awareness about the negative effects of synthetic
products on one’s health. The emerging trend of clean-label and organic product to
maintain the overall health and wellnes has increased the demand for dark and
sugar free chocolates .
 The single origin cocoa trend continues to propel innovations and new product
developments in the industry . this has contributed to the greater demand for high
quality cocoa powder , cocoa liquor , and cocoa butter.
 The rapid escalation in demand for premium or speciality chocolates especially in
developed markets such as the US , France ,Belgium , and Germany has been
observed in recent yearend an upward trend is expected in the coming years.The
increasing awareness regarding labor welfare is further expected to fuel the
demand for fair traded cocoa in the foreseeable years.
 Cocoa price volatility is not novel, as commodity prices are often fluid. However, the
current rise in demand coupled with any disruption to or inadequate supply of
cocoa will seriously impact the price of chocolate. Large chocolate producers will try
to hedge he price fluctuations related to commodity prices with forwarding
contracts that establish a price they are willing to pay in the future, but in the long
run, sustained commodity price increases will result in higher chocolate prices as
companies pass along these higher supply costs to chocolate lovers everywhere.

With a decrease in supply and no change in demand, the market for chocolate bars
would look like this: (a decrease in supply will cause the equilibrium price to
increase and the equilibrium quantity to decrease)

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When supply increases, the curve shifts right, the equilibrium price decreases, and

the quantity increases. When supply decreases, the curve shifts to the left, the
equilibrium price increases, and the quantity decreases.

increase in supply decrease supply

supply curve shift right left

equilibrium price decrease increase

equilibrium quantity increase decrease

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REVENUE GENERATION AND CONTRIBUTION TO GDP

According to a research conducted in 2016 :India consumed 2,28,000 tons of chocolate

during the year , meanwhile the chocolate sales in other nations were stagnated. It was
stated in the research that over two in five consumers (44%) found sweet snacks like
chocolate and cakes to be healthy.

Chocolate is the largest part of the $34.5 billion US confectionery industry. According to
the National Confectioners Association , chocolate sales, account for a whopping $21.1
billion of the confectionery industry over 60%.That revenue of $21.1 billion in 2014 was
a 2.9% increase over 2013. The greatest growth was in premium products, which
expanded 11%, and in dark chocolate products, which grew 8%. Sales were expected to
grow another 6% by 2017 to $22.4 billion. Seasonal candy is a major driver of the
confectionary industry, and in 2014 accounted for over 21% of sales – over $7 billion.
This includes holiday specific packaging, shapes, colors and even flavors tailored to
occassion : religious, cultural and holidays. Year over year growth in this seasonal
category was a healthy 8%.

COMPETITON AND FIRMS OPERATING IN THE INDUSTRY

Global chocolate market is highly competitive, with the presence of numerous leading
players accounting for the major share. Mars Incorporated, Ferrero, Hershey’s, Modelez
International, Nestle, are few among thsoe  prominent players companies in the global
chocolate market. Nestle and Mars, Incorporated are the most active companies in terms
of product launches. New Product launch is the most preferred strategy in the global
market. The development of products to enhance the portfolio and to capture the
untapped markets has driven the growth of the chocolate market. Owing to the changing
tastes and preferences of consumers, there have been considerable developments of
products by various market players. The leading players in the chocolate market enjoy
a dominant presence worldwide. Brand loyalty among the consumers gives these
companies an upper edge.

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NET SALES 2019 (US$ millions)

Nestle

Hershey's

Meiji
NET SALES 2019 (US$
millions)
Mondelez

Ferrero

Mars

0 00 00 00 00 00 00 00 00 00 00
20 40 60 80 10
0
12
0
14
0
16
0
18
0
20
0

THE MAJOR PLAYERS IN THE CHOCOLATE INDUSTRY ARE

 NESTLE : it is a Swiss multinational food and drink processing company,

headquartered in  Switzerland. It is the largest food company in the world,
measured by revenues and other metrics, since 20 Their tagline is "Good food. Good
life." Nestle ranked no.64 on the Fortune Global in 2017 and no.33 on the 2016
edition of the Forbes Global 2000 list of largest public companies.[9] Nestlé's
products include baby food, medical food, bottled water, breakfast cereals, coffee
and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks.
 HERSHEY’S : it is an American multinational  company and one of the
largest chocolate  manufacturers in the world. It also manufactures baked products,
such as cookies, cakes, milk shakes, drinks and many more that are produced
globally. Its headquarters are in Hershey, Pennsylvania, which is also home
to Hershey park land Hershey's Chocolate World. It was founded by Milton S.
Hershey in 1894.

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 MEIJI DIARIES : it is a Japanese food company. It was a major dairy industry company
established in 1917. Apart from dairy products like milk, ice cream, and cheese, their
lineup includes sports drinks, pizza, chocolate bars and food supplements like
"Toromeiku", described as a "food viscosity preparation". It has a joint venture in
Thailand with Charoen Pokphand to market dairy.
 MONDELEZ INTERNATIONAL : It is an American multinational confectionery. The
Mondelez International company manufactures chocolate, cookies, biscuits, gum,
confectionery, and powdered beverages..
 FERRERO ROCHER  : It is a chocolate and hazelnut confectionery  produced by the
Italian chocolatier Ferrero. The Ferrero Rocher was introduced in 1982 in Europe.
The chocolate consists of a whole roasted hazelnut  encased in a thin wafer  shell
filled with hazelnut chocolate and covered in milk chocolate and chopped hazelnuts.[
 MARS : Mars, Incorporated is an American multinational manufacturer
of confectionery, pet food, and other food products. It is headquartered
in McLean, Virginia, United States . Mars is known for the confectionery items it
creates, such as Mars bars,  Milky Way bars, M&M's,  Skittles,  Snickers, and Twix.

PRICING STRATEGIES IN THE INDUSTRY :

VALUE BASED PRICING : it is a price-setting strategy where prices are set primarily on a
consumer's perceived value of the product or service. Using value based pricing assures
that you are evaluating the full value of a product or service and not leaving money on
the table or asking for more than what the product is worth.

ECONOMY PRICING : Economy pricing is a volume-based pricing strategy wherein you

price goods low and gain revenue based on the number of customers who purchase your
product. It's typically used for commodity goods, like generic-brand groceries or
medications, that don't have the marketing and advertising costs of their name-brand
counterparts.

PSYCHOLOGICAL PRICING : Psychological pricing is the business practices of setting

prices lower than a whole number. The idea behind psychological pricing is that

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customers will read the slightly lowered price and treat it lower than the price actually
is. An example of psychological pricing is an item that is priced $3.99 but conveyed by
the consumer as 3 dollars and not 4 dollars, treating $3.99 as a lower price than $4.00.
some kinds of psychological pricing strategies are ; artificial time constraints , charm
pricing , innumeracy , price appearance.

PRICING STRATEGIES OF PRODUCT LINE : Products line pricing is defined as pricing a

single product or service and pricing a range of products. example if you buy a pack of
chips and chocolate separately you end up paying a separate price for each product;
however of you buy a combo pack of the two you end up paying comparatively less price
for both and if you buy a combo of both in a higher quantity you end up paying even
lesser.

PROMOTIONAL PRICING : These promotion offers can include, discount offers, gift or
money coupons or vouchers, buy one and get one free, etc. to promote new and even
existing products companies do adopt such strategies where they roll out these offers to
promote their products. An old strategy yet it is one of the most successful pricing
strategies till date. Reason of its success is that the consumer considers buying the
product and service for the offer that the consumer receives.

PREMIUM PRICE : Premium pricing is charged for products and services such as
precious jewelry, precious stones, luxurious services, business air travel, etc. The higher
the cost the more will be the value of the product amongst that class of audience.
Premium products are priced higher due to their unique branding approach. A high
price for premium products is an extensive competitive advantage to the manufacturer
as the high price for these products assures them that they are safe in the market due to
their relatively high price.

INDUSTRIAL PERFORMANCE

GLOBAL PERFORMANCE :

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Chocolate is the most widely-consumed sweet treat in the world. The World Cocoa
Foundation states that cocoa beans have a consumption value of over 3 million tons
every year. One of the reasons that make chocolate a constant favorite among customers
is that it not only makes people feel good, it is evidently beneficial for the human heart
and brain.

The Global chocolate market is projected to grow at a CAGR of 4.5% during the forecast
period. Global chocolate market is highly competitive, because of the prsesence of
numerous leading players accounting for the major share. The increasing demand and
growing popularity of dark and organic chocolates are fuelling the market’s growth.

 THE COUNTRIES WITH HIGHEST CHOCOLATE PRODUCTION :

 UNITED STATES
The U.S. is one of the top producers of high-quality chocolates, with U.S. chocolate
manufacturers bringing in over $20 billion annually in retail sales. The United States
occupies almost 30% among the 35% of chocolate production takes place in Europe.
Hershey's is the largest chocolate producer in the US. Switzerland started making
chocolate in the 17th century and the Swiss are the largest consumers of chocolate per
capita. Belgium is one of the largest producers and much of the chocolate is still made
largely by hand. Two-thirds of the cocoa used in making chocolate is from West Africa.
Most corporations engaged in the manufacture of chocolate in the U.S. and elsewhere
purchase their cocoa beans from the Ivory Coast in Western Africa.

 GERMANY
German chocolate manufacturers represent nearly a $10 billion per year industry.
Cologne is the chocolate capital of Germany. Chocolate shops in the U.S. often import
chocolates from the city to sell alongside U.S. chocolate brands. Stollwerck Chocolates
Company is one of the most famous chocolate manufacturers in the country; it also has
production plants in Belgium and Switzerland. Other famous chocolate brands in
Germany include La Maison du Chocolat, Tortchen, and Leonidas Chocolates.

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 SWITZERLAND
Switzerland is well-known for its chocolates and principal chocolate manufacturers.
The production of chocolate is an important source of wealth for the country. Zurich
is the foundation for the country’s chocolate production. World-renowned chocolate
brands that originated in Switzerland include Nestle, Toblerone, Lindt, and Sprungli.
Chocolate production in Switzerland dates as far back as the 17th century. From the
19th century forward, until the end of World War II, the Swiss chocolate industry was
heavily export-oriented. Today, the Swiss are the largest consumers of the chocolate
produced within their own country. In 2000, approximately 54% of the country's
chocolate was consumed by the Swiss. Switzerland also has the highest per capita
rate of chocolate consumption in the world, which is nearly 30 pounds every year.
Total annual revenue from chocolate sales is estimated to be $14 billion.

 BELGIUM
Belgium is also world-renowned for its chocolates, and it is a major chocolate
manufacturing center. There are approximately 15 chocolate factories and more than
2,000 chocolate shops in Belgium. Godiva is the most famous Belgian chocolate brand.
Belgian chocolate industry generates an annual sales of approximately $12 billion.

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Cocoa bean grinding by region and country in % of the world's total, 2017-
18

12
8
13 12.7
4 9.6 9 10.6 6.8 8.4
5.2 6.1 5 5.7
3.2 2.6 2
0

WORLDS BIGGEST CHOCOLATE CONSUMERS :

Per capita chocolate consumption (2017)

China
Japan
Brazil
France
US
Per capita chocolate
Russia consumption (2017)
Belgium
Sweden
UK
Germany
Austria
Switzerland
0 1 2 3 4 5 6 7 8 9 10

NATIONAL PERFORMANCE

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 The Indian industrial chocolate market is projected to grow at the rate of 12.8 by
2023
 The Indian consumers were found to consume an estimated 228 thousand metric
ton of chocolate confectionaries in 2016. This clearly shows their willingness
towards spending on premium confectionery.
 The market is driven by the increase in demand for chocolate in several industries
such as bakeries, confectionaries, beverages and frozen desserts among others.
 The inflationary pressure on prices of cocoa and the continuous demand for product
innovations are hampering the market’s growth.
 However, the increasing community awareness programs and rising interest of
multinational giants in the country's cocoa business are likely to offer a significant
potential for cocoa cultivation, over the forecast period.
 the rising disposable income of the middle class population in the country has
affected the demand for overall chocolate consumption in India.
 The consumption is not limited to being a luxurious option , but has also become
a part of casual snacking, gifting on occasions and so on.
 Unexpected aberrations in rainfall have made cocoa more dependant on drip
irrigation and more susceptible to water logging, in Kerala and Tamil Nadu.
 Warmer maximum temperatures have reduced the area suitablility for
cultivating cocoa, in the plains of Tamil Nadu.
 Per capita consumption of chocolates in India is 20gms in India as compared to
around 5-8 kg and 8-10 kg respectively in most European countries.
 The launch of lower-priced, smaller bars of chocolate in the last two years and
positioning of chocolate as a substitute to traditional sweets during festivals, have
boosted the consumption in the country
 In the middle and higher income groups, 70 per cent of children, 43 per cent of
young adults and 16 per cent of adults consume chocolate.

REGIONAL PERFORMANCE

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 The market for chocolates, including that of domestic brands, is booming silently in
Kerala.
 The volume of sales and consumption are growing every year and the total
production of chocolate factories across the State is also on the rise.
 At present, there are a dozen factories in Kerala that manufacture several variants
and flavors of this delectable dark brown confection using imported chocolate-
making machines with higher production capacity.
 Most of the main cities in the State have dedicated chocolate outlets that sell
several variants and flavors.
 The climate is favorable for chocolate-making in hill stations such as Munnar
which has several retail outlets that sell non-branded homemade chocolates. Top
chocolate brands in the State are gearing up to double their production to meet the
growing demand.
 The most popular brands available in the local market are Pristine Chocolates,
Cocoacraft Chocolate Factory, Cacobean Chocolatier, and Liso. 
 Among multi-national companies, the chocolate market in India is dominated by the
British candy and confectionery company Cadbury, which holds about 62 per cent of
the market share.
 Swiss transnational food and beverage company Nestle, which offers a wide range of
chocolate and confectionary products such as KitKat, is in the second position with a
market share of 18 per cent while Mars accounts for 6 per cent.
 Amul and Ferrero share 3 per cent of market share. About 8 per cent of the market
share is divided among other international and domestic brands.
 The remaining three per cent is the market share held by the Kerala-based companies
that continue to witness steady growth.

PROSPECTS AND CHALLENGES IN THE INDUSTRY:

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 Chocolate still remains as one of the most exciting consumer goods in the world.
While many products become stale and settle into a pattern of steady
growth, chocolate continues to innovate.
 The increase in the disposable income of the people is the major factor which lies
behind the increase in demand for chocolates.
 The presence regional brands has stirred the sales of chocolates over the last
couple of years in countries such as South Korea, Japan , India, China etc…
 Multinational brands such as Ghirardelli, Mars, Ferrero, and Hershey’s also gained
popularity in these countries due to the changing taste preferences and increasing
brand loyalty.
 There is a peak in demand for chocolate during seasonal and festive occasions.
 There is a rise in the popularity of dark due to the fact that it helps in preventing
cardiac diseases, in addition to other benefits.
 The expanding applications of chocolate has a positive impact on the growth of the
global chocolate market.
 the political instability in cocoa producing countries are likely to restrain the growth
of the market over the next couple of years.
 the fluctuating prices of raw materials, especially cocoa and the instability of its
supply may also hinder the growth in the market.
 Besides, the rise in health issues like diabetes is a major threat to the growth of the
global confectionery market. Some of the manufacturers have come up with low-
calorie, sugar-free chocolates to handle this problem, but still it is not sufficient.
 The negative health connotations of chocolate may continue to undermine sales,
mainly in Western Europe and North America.
 The introduction of a wide variety of healthier alternatives to chocolate in the
market such as energy bars, nuts, and meat snacks may make it difficult for the
chocolate industry to grow unless it can tap into local health trends.
 These alternatives have managed to attract people looking for healthier alternatives.
 There is also a far broader umbrella of what can be considered snacks. Not only are
products such as snack bars and meat snacks rising in prominence, but products

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that have not traditionally been associated with snacking – such as cereals and
yoghurt products – are now being transformed into products which can be
consumed on the go.
 Another drawback is that the chocolate have only a limited audience in the Middle
East and Asia.
 Relatively , chocolate is beyond the price range of many in markets such as India,
China and the Middle East and there are no chances of this changing any time soon.
 Chocolate in China is mostly popular with middle and upper class audience because of
a standard bar of chocolate roughly equates to 19 minutes of work with the average
worker’s hourly wage.
 Players with a small presence will need to target second- and third-tier cities, where
newly-formed middle classes have developed, in order to gain market share.
 Manufacturers will also need to counteract this problem by setting up local
manufacturing facilities and lowering unit price of their products.
 Chocolate confectionery manufacturers and retailers continue to face multiple
challenges. Due to the increase in the price of raw materials, and from frequent
encounters from widespread government regulations and competitive pressures.
 The prices of imported raw materials such as cocoa butter , sugar , almonds and
vanilla may increase by unfavorable weather conditions in producer countries,
combined with a surge in global demand for chocolate.
 In the UK, the weakening of the pound also created obstacles for many chocolate
manufacturers.
 Overall, sales of chocolate are predominantly from Western markets, particularly
Western Europe and North America.
 The rises in average GDP per capita is likely to be a major contributor in China,
Mexico, Indonesia, Turkey and India. They are expected to be some of the fastest
volume growth markets in chocolate over the next five years.

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 Given the relative lack of affordability of chocolate in many of these markets, the
product’s volume growth is likely to come from new and emerging middle-class
groups.
 Companies are slowly dealing with the challenges they face, but can expect a low
growth environment for some time to come.
 The greater competition from new snacks and the growth of being consumer
conscious. These both will provide an existential threat to chocolate in the West.

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