CONTENT

SL. TOPIC
1. Abstract
2. Introduction
3. Planning
4. Marketing Management
Features, Product, Price, Place, Promotion
5. Chocolate
6. Reason for Selection
7. Feature of Chocolate Market
8. Advantage
9. Process of Making Chocolate
10. Range
11. Strategy of Business
12. Marketing Mix
13. Competitors
14. Nestle, ferrero rocher, amul, Cadbury, mars
15. packaging
16. channels of distribution
17. types of channels
18. transportation
19. license
20. strength
21. weakness
22. warehousing
23. conclusion
24. reference

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ABSTRACT

Chocolate Industry is currently in for a throttle as people’s consumption

pattern is changing for the best. People are being increasingly aware of the
benefits of healthy eating and chocolate is being established as an effective
and a tasty replacement remedy to keep various diseases at bay. This,
coupled with the undying craze for chocolate by people of all ages, has set
the growth chart of this Industry surging high at a faster pace. This paper
aims at providing a brief approach for the setup and functioning of a
Chocolate Industry, which includes the important steps of Management like
Planning, Organising, Operations, Staffing, assessing our strengths and
weaknesses, marketing strategies and the policies laid out.

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 APPLICATION OF PRINCIPLES OF MANAGEMENT IN
CHOCOLATE MANUFACTURE OF CHOCOLATE
MANUFACTURING COMPANY.

INTRODUCTION

Chocolate Bars…The most irresistible and mouth-watering

confectionery item entices people of all ages, irrespective of their class or
mood. It is not of the modern time, but dates back in history to the Mayan
and the Aztec Civilisation, who drank it as a frothy and a spicy beverage
almost 2500 years ago. They grew cocoa trees whose seeds were harvested,
fermented, roasted and ground to a paste. When the paste was mixed with
cornmeal, water, and several other ingredients, it became a delicious
beverage. And by the 1800’s, more and more people were able to purchase
chocolate, because it was more affordable, mass produced, and made into a
solid chocolate candy. This, coupled with the recent blooming interest in
using chocolates to prevent health ailments has propelled the Chocolate
Industry to soaring heights. The main objective of a chocolate industry is to
provide the ardent fans of chocolates with rich and tasty milk chocolates in
innovative and exiting varieties along with the inclusion of tantalizing and
heavenly flavours.

PLANNING

A. Vision
To spread positivity and goodness by enabling people indulge in divine chocolaty
experiences at affordable prices.

B. Mission
To emerge as the global leader in the Chocolatier Business, spreading joy and
contentment amongst people and constantly innovating our products according to
the changing customer needs.

C. Company description and Ownership

The company’s location, headquarters, number of branches, name of the company
and brand name must be planned. The chocolate industry can be partnership firm
or sole proprietorship. In the case of partnership, there can be different levels of
management. The main target audiences include

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  Kids
 Youngsters
 Lower Class
 Middle Class
 Upper Class

D. Market Survey
The Indian Chocolate Industry is evaluated at around 35,000 tonnes valued at
around Rs.60 billion in 2014. Cadbury is the major player in India accounting for
nearly 70% of the sales. Five Star, Diary Milk, Gems, Celebrations and Perk sell
easily in the market. Other Major contributors are Amul and Nestle. There is a
bright future for Chocolate Industry in the Indian Sub-Continent as the Market is
growing steadily here. The main market for chocolates is the urban market as the
exposure to luxury and standard of living is high. According to a survey, it was
found that 80% of people consume sweets and 45% fall between 10-20 age group
and 33% fall between 20-30 age group and the important aspects people keep in
mind before purchasing are Flavour, Quality, Packing and Taste. And Caramel has
made sure that these aspects are given more importance. Hence this
environment/premise would be ideal for venturing out for business.

E. Competitor Analysis
TABLE 1

CURRENT COMPETITORS IN THE INDIAN MARKET AND THEIR PRODUCTS

Competing Competing Products

Company
Cadbury Dairy Milk ,5 Star, Shots, Gems, Silk
Nestle Bar One, Nutties
Mars Bounty, Snickers, Galaxy, Mars
Ferrero Rocher
Parley Melody, Poppins, Mango-bite

F. Products
In keeping with the changing likes and trends in the markets, and to draw the
customers attention, the industry has to devise recipes to create chocolates that can
match up to the levels of the current competition.

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G. Operational detailed Plan
The product is processed by pre-programed Chocolate Production Line Machines
(CAR100) which includes the process of baking the moulds, depositing, forming
etc. in series. The shapes of the moulds can be changed accordingly. The capacity
of the machine is 200kg/hr. Since the process is fully automated, it eliminates the
need for extra labour requirements and hence reduces the working cost.

H. Production Process
Chocolate manufacturing is highly advanced and fully controlled by electronic
devices with special machinery parts including moulding machines, pressing and
grinding machines like cocoa malinger and cocoa roller etc.

1) Chocolate Production: Seeds after screening and selection are cleaned in a seed
cleaning machine to remove the extraneous dirt materials. The shells are removed
after cracking and the crushed cocoa beans are called nibs.

2) Roasting: The nibs are then sent to a rotary dryer where they are roasted for
about 45 minutes to 3 hours at temperatures more than 3000C until they start
emitting a characteristic flavour.

3) Grinding: The nibs are milled to get liquefied cocoa butter which is dark brown
in colour, with a pleasant odour and flavour and contains about 64% of cocoa
butter. This is called the cocoa mass.

4) Pressing: The cocoa mass is squeezed hydraulically to separate the butter from
the cake. This butter is used to produce chocolate.

5) Blending and Refining: Cocoa mass and butter, flavours, powdered milk are all
mixed in mixers to a paste form with a required consistency. Chocolate refiners

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use a set of rollers to reduce the size and thus produce the flakes. This step
determines the smoothness of the chocolate.

6) Conching: This process is used develop the flavours. Machines such as conches
that are having large paddles are used to sweep back and forth and the flakes spend
few days in the conches. This process is aimed at reducing moisture, removing the
acidic flavours and coating each piece of chocolate with cocoa butter.

7) Tempering and Moulding: The chocolate produced after cinching is then

tempered, cooled and moulded and this results in the formation of small crystals
and is deposited on different moulds. Properly tempered and moulded chocolate
will have a smooth and glossy appearance. 8) Cooling: Once moulded, the pieces
enter the cooling tunnel where they are solidified by spending a certain amount of
time depending on their length and size. They are then sent for packaging and sent
to the retailers.

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MARKETING MANAGEMENT
Marketing management means management of all the activities related to
marketing or in other words, we can say it referes to planning, organizing,
directing and controlling the activities of which result in the exchange of
goods and services.

Marketing Management invoice the following activities

1. Choosing a target market
2. Growing customers in the target market.
3. Creating superior value.

FEATURES
Market Research Market Planning Product Design& Standardization

Development Grading

Packaging Branding Customer Support Pricing of Product

and labelling Services

Promotion

and selling Physical Distribution Transportation Shortage and

Warehousing

 PRODUCT
 PRICE
 PLACE
 PROMOTION

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PRODUCT
Product is an article which a manufacturing desire to sell in the open market.
It is the first element in the marketing mix. The Product includes the
following variables.
1. Product line & range.
2. Style, shape, design, colour quality, and physical features of a product.
3. Packaging and trademark gave to the product.
4. Branding and trademark gave to the product.
5. Product inaction.
6. Product Servicing.

Product is the most powerful competing instrument in the hand of a

marketing manager.

PRICE
Price is one more crucial component of the marketing mix. It is the valuation
of the product mentioned by the seller on the product. The price is very
important as it determines the company’s profit & survival.
Price mix includes the following variables:-
1. Discount and other concession offered for capturing the market.
2. Team of credit sales.
3. Term and delivery
4. Pricing strategy selected & used.

Pricing has an important bearing on the competitive position of the

product.

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PLACE
Physical distribution is the delivery of good at the right and the right place to
consumers. Physical distribution of products is possible through the channel
of distribution, which is many and varied is character.
Place mix includes the following variables-

1. Types of intermediates available for distribution.

2. Distribution marketing channels are available for distribution.
3. Transportation, warehousing, and inventories control for making the
product available to the consumer easily.
For large scale distribution, the service of wholesaler, retailer & consumer
& other market intermediaries required.

PROMOTION
Promotion of products and services includes activities that communicate
availability features, merits, etc. Of a product to the target customer and
pursued them to buy it. Most Marketing organization undertakes various
promotional activity and spend the sustainable amount of money on the
promotion of their goods through using several tools such as advertising
personal selling and sales promotions techniques (like a free discount, free
samples, etc.)

CHOCOLATE
Chocolate is one of the most popular foods in the world, and a vast number
of foodstuffs involving chocolate have been created, particularly desserts,
including cakes, pudding, chocolate chips cookies, etc. It has been traded
internationally for centuries, mostly from the underdeveloped to the
developed world. Chocolate is typical of sweet, usually brown food
preparation of Theobrama cocoa seed, roasted and ground. It is made in the
form of a liquid, paste, or a block or used as flavouring in other food cocoa

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has been cultivated by many cultures for at least three millennia in
Mesoamerica.

REASON FOR SELECTION

I chose chocolate as my product because, in today’s life, form an old person
to a 2-year-old child, every person is in love with the taste of these flavoured
chocolates.

Every prefers chocolates both in winter and summer. It is easy to buy. We

can easily purchase chocolate from our nearly shopping stores. We can also
store it for months. It is available at a reasonable range of prices.

FEATURES OF CHOCOLATE MARKET

 India is primarily a mono-pack market, while the market worldwide is

a multi-pack market.
 While the trade and distribution in western countries is mostly
organized, in india, retail outlets like paan shops and kirana outlet
accounts for the bulk of the sales and organized trade still has only an
insignificant share in overall confectionery sales.
 Functional products and sugar-free confectionery dominate the
worldwide market while this trend is yet to pick up in india.
 As younger children are traditionally the key customer group for
confectionery.

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ADVANTAGE
 It is a common perception that chocolate is a mood elevator.
 Some people, when they are sad a depressed, experience a craving for
chocolate. On eating chocolate, they report that their mood is elevated,
and they feel better.
 This elevation in mood is temporary, through, and when this effect
wears off, they again revert to their previous state of mind.
 Theobramine, found in chocolate, was found to treat coughs better than
codeine.

BRAND
CHOKO-RICH
TAGLINE
Melts in your Mouth Not in Your Hand

USP
UNIQUE SELLING PROPOSITION

Choko-rich bay is a unique combination of dark chocolate and white

chocolate filled with nuts in the center.
It is never before experience. It gives a melting taste of dark chocolate
and milk in the mounth of the consumer. It is premium chocolate and
caters to the rich and affluent reaction of the society.

PROCESS OF MAKING CHOCOLATE

RECEIVING
SPLITING
FERMENTATION
DRYING
ROASTING
WINNOWING
GRINDING
CONCHING

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 TEMPERING
MOLDING
PACKING
CHOCOLATE IS READY

RANGE
1. Choko-rich clamic chocolate bay: (Rs.50)
2. Choko-rich Milk chocolate boy: (Rs.50)
3. Rich in cream brownie milk chocolate acts as a to the brain.
4. Choko-rich Dark chocolate bar:(Rs.80)
Better chocolaty taste for true chocolate lovers. It contains antioxidants
that boost the immune system and make us happy.
5. Choko-rich crunchy nougat: (Rs. 45)
Sweet chocolate rich in nuts and honey. Contain dry Fruits-Good for
health.
6. Salted Caramel bar: (Rs. 10)

STRATEGY OF BUSINESS

 Business- increase the width of chocolate consumption through low

price point packs and distribution focuses.

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  Increase dept of consumption, targeting regular chocolate consumers
through generating impulse and a dominant presence at the point of
sale.
 Maintain leadership through a superior marketing mix.
 Be a significant player in the gifting segement through occasion linked
gift packs.
 Build critical mass in the sugar business by introducing value-added
sugar confectionery products.

MARKETING MIX
Marketing mix is a set of marketing tools that the firm uses to pursue its
marketing objectives in a target market. The variables or elements of the
marketing mix have been classified into four categories, popularly known as
four P’s of marketing viz., Product, Place, and Promotion. These elements ate
combined to create an offer.

COMPETITIORS

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NESTLE
CADBURY
FERRERO ROCHER
MARS
AMUL

NESTLE
“Nestle” is a Swiss-German word which means “Little Nest” which is its
Trademark. Nestle’s relationship with india started 1912. It began trading as
The Nestle Anglo-Swiss Conduced Milk company. Nestle India’s First
production facility, set up in 1961 at Moga (Punjab) was followed soon after
by its second plant set up at Choladi (Tamil Nadu) in 1961. Consequently,
nestle was succeeded by the commissioning of two more factories at Ponda
and Bicholin Goa, in 1995 and 1997, respectively.
Brand Ambassador – Rani Mukherjee
Tagline – Good food, good life
USP – Biggest health and wellness brand

FERRERO ROCHER
Ferrero Rocher is an Itallian food and beverage company founded in 1946,
By Michele Ferrero. The company started its business in india in 2004. It is
famous for its unique taste, defined by its main ingredients. Ferrero India was
the 3rd Biggest chocolate Brand in 2014.
Ingredients Ferrero India was the 3rd biggest chocolate Brand in 2014.
Parent Company – Ferrero
Taglne – Share something special
USP

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AMUL
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat,
India. The co-operative was initially referred to as Anand Milk federation
union limited. Hence the name Amul formed in 1946. and it
Is a brand managed by the cooperative body the Gujarat Co-operative milk
marketing federation ltd, which 3 million milk producers in Gujarat jointly
own today. In this process, Amul became the largest food brand in india and
has ventured into the market overseas.
Parent Company – Amul (GCMMF)
Tagline – Taste of India
USP – A quality of Affordability

CADBURY
Cadbury India Ltd. Began its operation way back in 1948 by importing
chocolates. Today they are the unbeatable leader in the Indian Chocolate
market with some of the famous brands like Cadbury Dairy Milk, 5 Star,
perk, celebrations, gems, halls and éclairs. They have always succeeded in
conveying the right spirit to the audience with their “Always celebrating
brand image, which helped them to acquire 10% of the market share in India.

Brand Ambassador – Amitabh Bachchan

Tagline – Kuch Meeta Ho Jaye.
USP – Biggest Brand name in the world of chocolate.

MARS
Mars, incorporated is a worldwide manufacturer of confectionery, pet food
and other food product with the US 30 billion in annual sales in 2008, and is
ranked as the 5th largest privately held company in the United state forbes.
Headquartered in Mclean, the company is entirely owned by the masrs
family. Mars operates in six business segements in the US.

 Brand Ambassador – Sanam Kapoor

 Tagine – work Rest & Play
 USP- Marks bar has one of the biggest success stories in the confection
industry.

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PACKAGING
Parking plays an important role in determining customers’ attractive to the
product. Sometimes by looking at the packaging, the customer tries to access
the product quality. Good packaging is one of the important factors in the
success of the product.
First of all, my Chocolate will be packed in a plastic wrapper of good quality,
then 10,20, or 100 units of that it remains first fresh and healthy. For
transportation, it is very compulsory to keep our product in a carboard base
so that it remains to save as it is produces.

CHANNELS OF DISTRIBUTION

To make good & service available to customer firm offer take help of a
number of intermediaries like agents, wholesaler, retailer, etc. Called
channels of Distribution channel of Distribution Channel of Distribution are
set of firm and individual that takes the little or assist in transferring little too
particular good or service as it moves producer to customer.
Since my product is customer good, so it advised to choose the record level
of Indirect Channels. There will enable me to cover a large areas of the
maket, which will help me to increase the rules of my product.

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Types of Channels
One level Channel
Manufacturer – Retailer – Customer
Two-level channels
Manufacturer-Wholesaler-Retailer-Cutomer

Three-Level channels
Manufacturer-Agent-Wholesaler-Retailer-Cutomer

TRANSPORTATION
Transporation is important because unless the good is physically made
available. Sales cannot be completed. So, by seeing all the things. I have
decided to transport my product like this.
First of all, my product will be kept in the warehouse. Then it will be sent by
vans to Departmental stores.
Chocolate parlor and different wholesalers in a bulk quantity & then it will
be given to the different retailers to that my product will be easily available
to the consumers, and they will be able to consume the product easily.

LICENSE
We need to obtain several licenses and permits from the federal state, local
government keeping this in mind below is a quick checklist carrying then
different federal state and local licenses and permits we need to acquire price
to opening for business.

 Basic business operation licenses form the city in which business will
operate.
 Zone and land use permits
 Fire Department permit
 Special state issued occupational/professional license.

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STRENGTH
 One chocolate brand in india with lots of varieties like.
 Fruits & Nut and Roast Almond, Eclaris
 Celebrity brand ambassadors
 Excellent advesrtising reach and accessibility
 High Brand loyality.

WEAKNESS
 Rural Distribution penetration is less.
 Quality control needs to be strengthened.

WAREHOUSING
I have found that warehousing is important to create time utility in the
product. It is necessary because those are a different between product and
time product and time it is required for consumption.
I have selected a different location of warehousing which is very near to the
market. So, that less time is taken to store the product to the consumer &
easily available also.

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CONCLUSION

In our paper, we have discussed about planning, organizing, and staffing and
SWOT analysis of Chocolate Industry. Various policies and marketing strategies
are clearly mentioned. With the innovation and marketing strategies it will emerge
as a Global leader in Chocolate Business. The main aim of the company is
spreading happiness and contentment among people.

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REFERENCES

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McGraw Hill Education Private Ltd., 2010.
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market-164.html
[5]. www.slideshare.net/amardeepbardhan/cost-sheet-of-a-chocolate-company-
and-its-analysis
[6]. www.slideshare.net/chandan9211/business-plan-for-starting-a-chocolate-
company
[7]. www.thehersheycompany.com/en_us/food-philosophy.html
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industry-in-india-2014-19/
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business
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[11]. http://managementstudyguide.com

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