EXECUTIVE SUMMERY

GOALS

#1 #2
Improve the Market share of Identify new products in Milk
Amul Chocolates to 10% by 2022 Chocolates to attract more and new
customers

#3 #4
Improve Promotion budget and Improve Distribution to Reach More
ideas for awareness Customers in india
Marketing Mix of Amul CHOCOLATE
PRODUCT
Amul has 43 Variants of Chocolates and 45 including Frozen Bars Chocolates,
 Amul Milk Chocolates
 Amul White Chocolates
 Amul Dark Chocolates
 Amul Chocozoo
 Amul Filled Bars
 Amul Syrups
 Amul Wafer Chocolates
 Amul Choco Chips
Amul chocolate as a product is declining from the last many years is because of not meeting
the demands of the consumers. Cadbury & Nestle who are doing well in the chocolate market
have continuously launches new products and have been successful. Every product has a life
and it gets over one day. No product can live forever. Innovation is the key to survive in
modern day. Companies need to modify and improve their product time to time. Innovation
also led consumers to think that the company cares about their needs and changes time to time
to meet their demands.
For example, When Nestle launched Kit Kat in India it was a big hit. People just loved the taste
of the chocolate & its packaging. However, after a few years it started losing its share then
Nestle introduced couple of flavors Orange and Mint which increased the market share. Amul
also needs to introduce new varieties of chocolates and improve its existing ones. Amul should
introduce milk chocolates like Nestlé’s Milky Bar, Chocolates with fruits and nuts like Cadbury
has its Fruit and Nuts, Mint chocolates like Nestlé’s After Eight etc. Introduction of power bars
& low-calorie chocolates will also be a decent step to increase the variety of products. Also, the
packaging is a crucial factor because majority of the consumers are kids who are easily
attracted by attractive and colorful packages. Amul has the history of unattractive packaging. If
we compare the wrappers and boxes of Amul chocolates to Cadbury & Nestle, the packaging of
the competitors is far superior. Amul has to stop their ancient method of packaging and adopt
modern methods.
Amul must also spend a good amount of money on research and development to identify the
demands of the consumers and strategy of their competitors.
Category Variants SKUs
55% Dark 150g, 40g, 15g, 100g &
75% Dark 150g
90% Dark 150g
Classic Dark Chocolates
99% Dark 125g
Tropical Orange 55% Dark 150g
Fruit N Nut 55% Dark 150g, 40g
Mystic Mocha 55% Dark 150g
Green T 55% Dark 150g
Sugar Free 55% Dark 150g, 35g
Premium Dark Chocolates PERU origin 55% Dark Chocolate 125g
VENZUELA origin 55% Dark Chocolate 125g
TANZANIA origin 55% Dark Chocolate 125g
ECUADOR origin 55% Dark 125g
Chocolate COLOMBIA origin 55% Dark
Chocolate 125g
MADAGASCAR origin 55% Dark Chocolate 125g
Single Origin Dark IVORY COAST origin 55% Dark Chocolate 125g
Chocolates INDIA origin 55% Dark Chocolate 125g
Milk Chocolate 150g, 40g, 20g, 12g,
Belgian Milk Chocolate 125g, 35g
Camel Milk Chocolate 150g
Hazelnut Chocolate 150g
Raisin N Almond 150g
Exotic Milk Variants
Choco Cracker 150g
INDIA origin Milk Chocolate 125g
Super Fruit 150g
Exclusive White
White Limon 150g
Chocolates
Happy Birthday 150g
Best Wishes 150g
Emotion Packs
LOVE YOU 150g
Amul Wafer Chocolates Dark Passion Bindaaz 15g & 300g tub 15g
Chocomini 250g 250g
Amul Chocozoo
Chocozoo 250g 250g
Amul Filled Bars Amul Almond Bar Energy Bar Chocolate Syrup 35g 40g 650g, 250g, 30g sachet
Syrups Rejoice assorted gift pack 229g
Almondo 200g
Dark Emerald 280g
Amul Assorted / Gift Packs Dark Chocolate DCH-47 500g
Milk Chocolate MCH-23 500g
White Chocolate WCH-28 500g
Dark Compound DCO-18 500g
Amul Institutional Milk Compound MCO-II 500g
Chocolates White Compound WCO-20 500g
Choco Chips Packet 5Kg and 500g pack
PRICE
PLACE
 MARKET SEGMENTATION
Amul must divide its market using 2 bases of segmentation.

1. Demographic Segmentation

2. Geographic Segmentation
Demographic Segmentation: Demographic segmentation is segmentation of market
on the bases of factors such as age, gender, income, occupation etc

AMUL MUST DIVIDE ITS TARGET MARKET ON AGE

FACTOR.
Age 2 to 15 Children up to 15 years old, Amul should produce chocolates like plain bars filled with
chocolate in other words high on energy and sweet. The product should be rich in
chocolate, nuts and milk. For children they must have a lot of variety because children
have the tendency to try different chocolates. This is the most important target group
for Amul considering the product. Hence, major focus should be on the products
targeted to this market. The packaging should be more attractive and specially Milk
chocolates are the trend in this age group.

Age 16 to 35 For the market in the age group of 16 to 35, Amul should produce chocolates which
are low on calories and less fattening as this market segment is diet conscious. Before
taste they think about calories and putting on weight. Youngsters who work out and
are fitness conscious consume lot of such items to keep them full and away from high
calorie food products. Dark and sugar free chocolates are also trending in this age
group now a days for those Fitness and health conscious peoples.

Age 35 & For This segment mostly Health conscious are there so Sugar Free and Dark healthy
above Chocolate can be used. Also, Amul should also introduce protein bars which have
become a trend these days for some Fitness conscious peoples And sugar free
chocolates because at this age many people in India are diabetic or have been asked to
consume less sugar.

GEO-DEMOGRAPHIC SEGMENTATION
Geo-demographic segmentation is a segmentation technique that classifies people
according to where they live. The concept is based on the presumptions that people
who live within a particular area exhibit common purchasing behavior.

AMUL SHOULD DIVIDE ITS MARKET IN TO 2 SEGMENTS

URBAN In developed cities such as Mumbai, Bangalore and Delhi, people live with h
Metro purchasing power compared to other places in India. In these cities, the literacy r
Cities like is high, people have access to various means of advertising, and infrastructure
Mumbai, built. With no compromise on price, Amul should produce and supply high-qua
Bangalore, products in these cities. Nevertheless, they must bear in mind that their rivals
Pune, already enjoying a significant amount of market share in such areas. Due to
Kolkata and standard of products, availability and incredibly powerful brand name, Cadb
Delhi enjoys a monopoly in such cities to some degree. To excel in the market, Am
must match Cadbury 's quality.

RURAL States like Uttar Pradesh and Bihar are not developed like Mumbai and Bangal
AREA With bad infrastructure, the literacy rate is less than 50 per cent. Some individu
states like do not even have access to electricity. Poor farmers make up most of them. Am
Bihar, Uttar has an advantage here because it is not easier for their rivals like Nestle to re
Pradesh, those areas. Because of its ace products such as butter, cheese and milk that
Jharkhand available across the country, Amul has a strong network. Amul should lau
etc. cheaper but high-energy chocolates in these areas.

Chocolate Market Share INDIA 2019

5%
3% Cadbury
4%
3% Nestle
Amul
Mars
15%
Hershey’s
Others

69%
 PROMOTI
ON
Promotion refers to exchange of information between an organization and the consumer of its
products. Consumers here include Customers, shareholders, employees, government and other
parties related to the products like trade union and media. The aim of promotion is to inform the
consumers, differentiate from other products and to persuade them to buy. There are many
techniques of promotion like Advertising, Sales promotions, Direct Marketing & Personal selling.
Amul has been criticized for lack of promotion. Amul advertising spend is only 35 Crore compared
to the net income of 6,966 crores in 2019 which is Less than even 1% which is nothing compared to
Cadbury also It’s total Amul spending so only for Chocolate is negligible on the other hand
Mondelez International’s Advertising expense was 12,756 Crores in 2019 on the net income of 18
lakh 3,843 Crores which is more than 7%
The major reason for Amul’s absence in hardcore advertising is that Amul does not want to give
away margins in advertising its products. As per Amul, their maximum budget for advertising is
less than 1% of the turnover. Above and beyond that will directly affect the cost of the product. And
the major reason for Amul’s strong presence in the market is its excellent quality combined with the
affordable price. Thus, overall promotions will always be low for Amul except for the outdoor
advertising of Amul butter.
Amul has a strong brand name because of its dairy product leadership. Amul must advertise its
chocolates using media like newspaper, television and internet to inform the public about the quality
& the price of its product. Consumers have a short memory and it’s important for companies to
remind them about the products. Amul has totally shifted its focus from chocolates towards milk
and other milk products and have totally ignored chocolates. Using the mediums like Television and
newspaper the company needs to remind the public that they are back with improved products at an
affordable price.
In order to survive in the competitive market where players like Cadbury & Nestle enjoy the market
share Amul has to be different. They need to give the customers a reason why they should buy their
products. Amul has to use Sales Promotion effectively to announce their comeback. They can give
price discounts, more for less offer & free samples to increase their sales.
Amul must also provide free chocolates to municipal schools where majority of children come from
a low-income family. Free gifts like pencils or Books can also attract their target market kids.
Amul also has to focus on Business to Business customers. They can give special discounts or free
samples to major retailers like Big Bazaar & D-Mart to sell their products.
 2017 2018 2019

SWOT Analysis of Amul Chocolates

STRENGTHS
Distribution: Amul follows a three-tier distribution strategy for all its products where their products are
sourced at three levels from village to district to state and then distributed at three tiers namely company,
wholesaler, and retailer. This ensure availability and maximum coverage for Amul Chocolates.
Marketing: Amul Chocolates because of its association with Amul has benefitted greatly from the
marketing campaigns of the brand including the brand icon, the Amul Girl and its tagline Taste of India
Quality Control: Amul Chocolates has never compromised on quality. The company takes all possible
steps to ensure that there is total compliance with all norms mandated by various health, safety, and
quality regulatory agencies.
Innovation: Amul has drawn inspiration from leading confectionery businesses across the world and
innovated in their chocolates. This has resulted in the new category of dark chocolate and the chocolate
syrup.
Price: The Prices of chocolates of Amul are very economical and competitive in the market. Which
attracts large number of segments.

WEAKNESS
Promotion: The confectionery market is highly competitive and the purchase is focused on impulse
purchase behavior. This means that only advertisements can trigger the purchase. However, the relative
cost of promotion is low and thus the number of advertisements for chocolates in low. Failed to
understand which advertisement medium to use so failed to Create awareness among People.
Lack of importance: Amul has never emphasized enough on its chocolates and the vertical has always
been regarded as a low importance category with the company choosing to focus on Dairy Products like
Milk, butter and cheese. Limited international presence as compared to leading global brands and also
Penetration in rural areas is still limited.
 OPPORTUNITIES
Growth potential in emerging economies: India Industrial Chocolate Market is expected to grow at a
CAGR of 12.89% during the forecast period of 2019 to 2024 by which time market value is expected to
hit US$ 1.8 Billion according to ‘Business Wire’.
Healthy Chocolates: In this 20s the customer is growing more conscious about health and this is creating
a new need for sugar-free and low calories chocolates. Dark chocolate now a days rising in consumer
demand.

THREATS
Competition: The confectionery market is highly competitive the main competitors of Amul are
Mondelez International (Cadbury), Nestle, Mars, Hershey’s in which Mondelez International (Cadbury)
and Nestle taken almost 80% market share.
Low barriers to entry: The confectionery market has low barriers to entry with the result that many new
players are entering into the market. There is also a huge market for homemade chocolates today which is
proving to be a threat from branded chocolates.
Government policies: Government policies for chocolate manufacturing companies can be a major
threat.
1. Stars
The products which are considered as Stars of Amul are Amul Ice cream and Amul
Ghee.  These two products have a high market share and have adequate
possibilities to grow in the near future. Amul Ghee has also been a Star for the
company as the brand has been able to acquire a 30% hike in its sales while the
market share clanged by the product is around 18% along with a yearly turnover of
more than Rs 1,700 Crores.

2. Question Mark
Amul Chocolate is diagnosed as a Question Mark as their capability as a major
derivation of profitability remains quite bleak. Amul Chocolate has been brought
about in the market with the agenda to magnify the market share and give a tough
competition with the other beverages available in the market. The healthy milk
from Amul possesses a huge potential to swell in the future considering the
expansion of interest and demand for healthy products, refreshments, and
beverages.

3. Cash Cows
There are three products under the umbrella of Amul that come under the Cash
Cow category and they are Amul Milk, Amul Butter, and Amul Cheese. The
market share of these products is not likely to undergo colossal gains but their
current spot makes them a high revenue contributor.

4. Dogs
Amul has two products that have not been able to generate sales and revenues as
per the estimation. One of the noteworthy examples in this regard is Amul
Chocolates and Amul Pizza. The competitors make it tough to amplify the market
shares to a notable degree which can turn this product to become an outstanding
source of sustainable revenues. However, if the sales figures do not proceed
towards betterment, a probable measure would be to take the path of divestment of
the above-mentioned brands.
 STARS
QUESTION MARKS
MARKET GROWTH RATE

CASH COWS RELATIVE MARKET DOGS

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