IMC STRATEGY OF AMUL CHOCOLATES

IMC STRATEGY OF AMUL CHOCHOLATES

Projected by NILADRI SARKAR

RESEARCH PROBLEM
• Amul chocholate’s Market share decreased to 5% much less than market leader(79%) • The awareness level of AMUL CHOCOLATE is very low. • To find the performance of AMUL CHOCOLATE vis-à-vis other Brands. • To know the consumer psyche and their behaviour towards AMUL CHOCOLATE.

RESEARCH OBJECTIVES
• To gauge the awareness of people towards Amul chocolates. • To find out in which segment chocolates are mostly liked/preferred. • To understand which advertisement medium must AMUL use. • To know the perception of Amul chocolates in comparison to other competitive brands. • To formulate an IMC strategy for Amul Chocolate.

Information requirement
• Information about all the competitors present in the chocolate segment (Reputed & well established brands as well as Local brands e.g. Cadburies,Nestle etc.) • Information about the comparative packs and prices of all the competitors existing in the market. • To trace the market and segment ,which mainly deals with people of various age groups. • Various types of chocolates available in the market • Information if the television advertisement timing is effective or not.

RESEARCH INSTRUMENTS
• Primary Research
– Questionnaire

• Secondary Research
– – – – Internet E-Journals Newspaper Articles Research papers

superstores. 2. Sampling Technique : Non probability sampling Sample Unit : People who buy chocolates available in retail outlets. Data analysis method 6. Method 5. : All over India( email questionnaire). Area of survey : Questionnaire (including email). : Graphical method. . etc ( Convenience sampling) 3. Sample size : 100 respondents (Age ranging between 8 yrs to 65 yrs) 4.SAMPLING 1.

• Entered in chocholates segment in 1970 • Sales Turnover Rs 52554 million 2007-08. • Amul means “Priceless” in sanskrit.Company Profile • First milk union KAIRA DISTRICT COOPERATIVE MILK PRODUCERS’ UNION Started in 1945. • Selected Brand name AMUL in 1955. .

Introducing higher value products. Developing demand. . e-initiative strategy. Umbrella Branding Strategy. Vast & strong supply chain network.AMUL PHILOSOPHY • • • • • • Matching demand and supply.

AMUL PRODUCTS • • • • • • • • • • Amul Butter Amul Milk Powder Amul Ghee Amulspray Amul Cheese Amul Chocolates Amul Shrikhand Amul Ice cream Nutramul Amul Milk .

AMUL PRODUCT RANGE .

AMUL CHOCOLATES .

SALES TURNOVER .

MARKET SHARE .

5% • • • • .CHOCHOLATE MARKET IN INDIA • • • Chocolate market is estimated to be around 1500 crores (ACNielson) growing at 18-20% per annum Cadbury is the market leader with 79% market share The per capita consumption of chocolate in India is 300 gram compared with 1. Indian candy market is currently valued at around USD 664 million. in sugar confectionery and the remaining 30%.9 kilograms in developed markets such as the United Kingdom Over 70 per cent of the consumption takes place in the urban markets. Entire Celebrations range marketshare is 6. The chocolate wafer market (Ulta Perk etc) is around 35 % of the total chocolate market and has been growing at around 13% annually. with about 70%. As per Euromonitor study. in chocolate confectionery. or USD 461 million. or USD 203 million.

Candico and Chocolatiers are present in several malls. Nestle(14%) and Amul (5%) • New brands such as Sweet World.COMPETITION SCENARIO • The chocolate market in India has only three big players. a niche market of their own. • Candico India is aiming for 400 locations across malls and multiplexes in the country by 2010. started with a small shop in south Delhi’s Chittaranjan Park and has now ventured into malls and multiplexes in NCR. Cadbury(79%). with focus on high-end or designer chocolates. • Delhi-based Chocolatiers. . • The largest target segment for Cadbury is youth. Mumbai and Bangalore.

Chocolates which used to be unaffordable. is now considered mid-priced. The range and variety of chocolates available in malls seems to be growing day by day.Convenient packaging and better shelf life. consumers had negligible inclination for dark chocolates. In past. Consumers can choose from wide range of chocolates. which is increasing the base of this sub-segment • • • • .is getting substituted by chocolates . Latest 5 star crunchy and Ulta Perk. so many SKUs with almonds. which leads to lot of impulse sales for chocolate companies.CONSUMER TREND • • • Mithai. Sudden spurt in advertisement between July & Sep in festival seasons. raisins and all sort of nuts. Designer chocolates have become status symbols. But now we have seen a change in the Indian palate.

Maximum chocolate advertising was during Raksha Bandhan. followed by Hindi movie with 13% share.ADVERTISEMENT TRENDS • • • • • • • • Chocolate advertising rose by 30 per cent. Cadbury India Ltd was way ahead of its peers with 66 per cent share followed by Nestle India Ltd and Parle Products Pvt Ltd During January-November 2008 the number of new chocolate brands advertised decreased to seven from 12 during 2007 Nestle Munch Pop Chocolate led the chart of new chocolate brands advertised on television during January-November 2008 . As expected chocolate advertising skewed towards kids channels and regional GEC took the second position Cadbury India Ltd rules chocolate advertising on television Regional GEC took the second place with a 21% share ad volumes of chocolates.

JOURNEY – AMUL • • 1970s – Market Leader A classic 1970 .80 Advertisement .

AMUL AD ON INDRAJAL(1970 80) .

1990s • Shifted focus in 1990’s towards other milk products. • Competition from multinationals • Market share down to 2-3% .

targeting teenagers .1990s AMUL ADVERTISEMENT Introduced newer varities of chocolates. ‘Nuts About You’ and others. like ‘Bindas’.

. up from three during the festive season before . Amul launched three new chocolates in under the brands Fundoo. • Increase in sales due to cadbury worm controversy.2003. • While the first two have been priced at Rs 10 for a 30 gm stick. Almond Bar carries a price tag of Rs 10 for a 35 gm chocolate.. • As a result..(20 % increase in sales) • To boost sales. AMUL's festival season pack "Rejoice" came with six chocolates. Bindaas and Almond Bar.

Trendy Look – Removed the cute little butter girl and cheese boy from its wrappers. Rs 3 and Rs 5. Not merely gifts. This.2004-Repositioning • • • • Launch of ‘Chocozoo’ .chocolates in shapes of motorcycles. trendy and colourful. Introduced economic variants of chocolates priced at Re 1. animals and comic charaters . • • • A new tag line: Amul Chocolate — For Someone You Love. but make a more emotional pitch with emphasis on Amul Chocolates for love on all occasions. was done to attract kids. Targeted Kids. New wrappers.’’ A tub of ‘Chocozoo’ chocolates were priced at Rs 138 for 46 units of chocolates. designed by a US firm. but retailers can sell the chocolates loose. . at Rs 3 each. aeroplanes.

available in strawberry and chocolate flavours. Placed its chocolate products at lesser price points compared with its competitors. Market share increased to 10 % • • • . Concentrating on the niche segment such as health chocholates Launched Trix. Rose day advertisement. both of which have been appreciated by the consumers. Corporate Image advertisement. Strategy was to identify the market gaps and try and fill them as done in the past with their sugar free and Choco Zoo. Priced at Rs 5.Cadbury's Perk and Munch from Nestle are other two major players in the wafer chocolate segment. A new product portfolio.2007 – Strategy Rework • • • • • • Reworked its strategy in the chocolate category to push its chocolate product sales. a wafer biscuit coated with rich milk chocolate. Introduced father son advertisement.

SURVEY ANALYSIS 1) Do you like chocholates? • Yes 97 % • No 3 % 2) Who in your family uses chocholates? O ld 2 % Ks id 3% 3 Yu s o th 4% 4 Ks id Te a es engr Yu s o th O ld Te a es engr 2% 1 .

3) What kind of chocolates do you prefer? • Branded • Non Branded U nbranded 9 % Branded U nbranded Branded 9% 9 .

4)What type of chocolates do you prefer? • Wafers • Bars • Small chocolates • Other O e th r 9 % W fe a rs 9% 9 W fe a rs S a m ll ch ch la s o o e 4% 4 B rs a c B rs a 9% 9 S a ch ch la s m ll o o e O e th r .

5) Which type of television channel do you prefer watching the most? • News • Cartoon • Zee/Star (Entertainment) • Other news 12% other 37% cartoon 13% news cartoon zee/star other zee/star 38% .

pm 9 9% 9 .pm 9 9 pm 9 4% 4 Late Night Afternoon 4% 4 99 .6) Which time slot do you prefer for watching television? • Morning • Afternoon • 5-8 pm • 8-11 pm • Late Night Late Night 9% 9 Morning 9% 9 Morning Afternoon 9 pm 9 99 .

7) Media where the last time you saw a chocolate advertisement was • Television • Hoardings • Radio • Newspaper • Magazine • Other N spaper ew 9 % R adio 9 % O thers 9 % T ision elev H oardings R adio H oardings 4% 4 T ision elev 9% 9 N spaper ew M agazine O thers M agazine 9 % .

8) According to you which of the following makes a television advertisement more memorable? • Jingles • Brand Ambassador • Emotion • Humour • Product display • Others O thers 9 % PD isplay 9% 9 H umour 9 % Emotion 9 % Jingles 9% 9 Jingles B Ambasador Emotion H umour PD isplay Others B Ambasador 9% 9 .

9) Have you heard of Amul Chocolates? • Yes • No No 9% 9 Yes No Yes 9% 9 .

10) Can you recall any of the Amul chocolates Advertisement/ Hoarding? • • Yes No Yes 9% 9 Yes No No 9% 9 .

11) Which chocolates do you like the most? • • • • Amul Nestle Cabury Others O thers 9 % Am ul 9% 9 N estle 9% 9 C adbury 9% 9 .

12) When do you usually purchase a chocolate? • Festivals • Gifting • Snacks • Just like that Festiv als 9% 9 Just like that 9% 9 G ifting 4% 4 Snacks 4% 4 .

consumption. – Scope of launching new variants and extensions.comparatively small business unit • Opportunities – Low penetration. • Threats – Foreign multinationals .AMUL SWOT ANALYSIS • Strengths– Parent support – Strong distribution network • Weakness – Raw material supply – volatile prices – Chocolates .

complete category coverage Distinctive taste. 250.15. 2.50 Celebration Rs 50 and 100 Rich Chocolates Rs 100. 450.03 Crore Market leader by far – 79% share Dairy milk alone accounts for 30% of market Targeting youth and adults through new products Full chocolate range. 5 and Rs.10. Dairy Milk Rs. 25 and 100 Fruit and Nut Rs 20 Dry Fruit Range Rs 25. 10. Chocky Rs. 5 Star Rs. . captured sensitive price points Eclairs Rs 1. 5.CADBURY • • • • • • • • • • • • Chocolate sales of Rs 514.

Choco stik.Nestle • • • • Chocolate sales – 346. kit Kat. Bar one .51 Rs. Crore 14% market share Chocolates 13-15% of total revenue Product range includes Classic. Munch.

Perceptual Map .

RECOMMENDATIONS .

• Gifting .Modified Positioning • Something to have just like that.

TARGET AUDIENCE .

Everyone • Youths. Old. • Different products for different age group . Teenagers. kids.

Modified Marketing Mix .

Product Introduction of new range of chocolates to suit different targeted segments • Variety • Design – Plain bars. • Sizes and Packages – wide range to suit key price points and occasions . filled. chocolate covered wafers.

Nestle’s Maha munch give more value for the same price • Priced at key price points like Rs.Price • Pricing – In line with Cadbury’s offerings • Incentive schemes – eg.5 .

Rani Mukherjee for munch ( targeting youth). • ADVERTISING – Increase in frequency.g. At prime time.Promotion • Must choose a Brand ambassadore. – Must increase advertising expense from the current 1% of the revenue to 5-6% as done by other competitors . Cadbury is planning to rope in Genelia D’Souza of JTYJN fame.

• Urban as well as rural. .Place • Make use of its strong distribution structure. • New Regional Sales Offices to increase width and penetration and focus in rural areas.

• Should increase R&D spending to improve the quality & taste. To increase the visibility of its products. Rs 50 and even at Rs 100 • Visibility at retails points. • Must offer low-priced packs for the masses and launch new products to target different age groups. target areas near bus stops. Rs 2. Rs 10 (26gms). Rs 5 (13gms). colleges. • Must introduce at price points such as Rs 1. Rs 15 (43gms). • Must focus on the availability and affordability of its products. schools. .RECOMMENDATIONS • Must introduce Festival Gift boxes like cadbury Celebration. cafes and places of entertainment like theaters and amusement parks.

pranky. contest. renowned bookstores and popular apparel outlets (such as Pantaloons and Wills Sport boutiques). Rejuvenate and strengthen the existing brands Extend its reach to semi-urban and rural markets. tattoo. free gifts etc. To put chocolate carts (similar to traditional bicycle ice-cream carts) in malls and near college campuses to increase its reach. Company should introduce sales promotion schemes like free weight. Advertisement can be done with the help of animations that attracts children and teenagers because chocolates are consumed largely in this segment. Sell its products through 'non-traditional' outlets like music stores (such as MusicWorld). . malls.RECOMMENDATIONS • • • • • • • • Must enter into marketing alliances with various portals to offer products (on those portals that were developed for festive occasions and celebrations such as Valentines Day and Friendship Day. Increase frequency of advertisement.

Baroda.AMUL PARLOURS • Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlours created in major cities Ahmedabad. Hyderabad and Surat. . Mumbai. Local advertisement must mention the exclusive Amul shops of the city. Bangalore. • Amul has plans to create a large chain of such outlets to be managed by franchisees throughout the country • Amul should give local advertisements apart from the advertisements given at the national level. Delhi.

. • Form its own shelves in retail shops and take ownership of maintaining them.CHOCOLATE BOUTIQUES AND SHELVES • Amul must come up with its own chocolate boutiques.

DIRECT SCHOOL PROGRAM As a part of the customer contact programme . .Amul must do direct school program for Amul chocolates. They can sampling their latest offering among kids.

AMUL CYBERSTORE Amul does e-selling of all its products including chocolates but very few people know about it. AMUL must make use of the hoardings and print ads to communicate this. .

TV SHOWS • Chhote Ustad •Amul Voice of India •Amul Surbhi • Chocholate advertisement in between the shows •Free Chocholate Gift Hamper to winners .

CONTESTS Amul can start some contest for chocolates as it is doing for some of its other products. 2008-09 • Amul Food Festival Contest • Winners of Slogan likho Disneyland dekho contest • Winners of "Amulya Fly to Bangkok Contest" . • Amul Chef of the Year. 2009 contest • Amul Maharani Contest.g.e.

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