Product Analysis : Chocolates

Global Market of Chocolates

Size of USD 110 billion Growth rate of 2.5 %

Nestle is the global market leader followed by Mars

Market getting stagnant in mature western markets Asia, eastern Europe and southern America have greatest growth prospects
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Indian Market
Size of Rs 8 billion in value and around 33,000 tonnes in volume Low per capita consumption of around 160 gm as compared to 8 kg in UK Very low penetration level Growth rate of 11.5%

Market Overview
Demand : Past & Future (in MT)
80 70 60 50 40 30 20 10 0

Demand : Past & Future

20 06 -0 7 20 08 -2 00 9 20 10 -2 01 1 20 12 -2 01 3 20 14 -2 01 5

20 02 -0 3

20 04 -0 5

Market Overview
Confectionery Industry

Mints / Chewing Gums 12% Chocolates 24% Sugar boiled 64%

Sugar boiled Chocolates Mints / Chewing Gums

Market Overview
Region-wise Distribution of Sales

South 20%

North 35%

North East West South

West 33%

East 12%

Market Overview
Age-wise Market Segmentation

Over 55 years 7% 25-54 years 22%

2-8 years 16%

2-8 years 8-25 years 25-54 years over 55 years

8-25 years 55%

Demand Drivers
Evolving demographics of buying population.
Increased penetration through targeting of adults. Low-cost availability in the form of smaller packages. Increased variety for different target segments.

Hindrances to Growth
Chocolates are a foreign food. Traditional substitutes like mithais are easily available. Chocolates are still seen as fun and indulgence products.

Consumer Behaviour
Chocolates are meant for children. Need for special occasions to consume chocolate.

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Cadbury
80s Perfect Expression of Love Early 90s Real Taste of Chocolate

94 Real Taste of Life Free-Child

98 Social contexts Post 2000 Joy of Consuming Chocolate

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Chocolate Variants
Moulded bars such as Dairy Milk, Crunch, Bournville, etc.

Countline bars such as Bar One, Snickers, 5 Star, etc.

Sugar panned such as Gems, Marbles, etc.

Choco panned

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Chocolate Variants
Product Variants Share (%)

Choco panned 4% Sugar panned 13% Countline bars 33% Moulded Chocolates 50%

Moulded Chocolates Countline bars Sugar panned Choco panned

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Market Overview
Leading Player's Share (%)

Amul 8% Nestle 22%

Cadbury's Nestle Amul

Cadbury 70%

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Product Portfolio
Nestl India

15

16

Product Portfolio

Cadbury India

17

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Competitive Strategies

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Cadbury
Product packaging and brand logo Chocolates for everyone

Rich tapestry of human relations

Star celebrities Employee satisfaction

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Nestl
Diversified, not predominantly into chocolates Set up of milk collection centres Long relationship with India Leaders in the Rs 5 segment (Munch) Effective stocking in stores Specific targeting of rural customers
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Future Growth Drivers

Increasing the market depth including rural Indias coverage Better product quality and packaging Launching sugar free product lines for the health conscious To carve niche segments, due to growth in disposable incomes and booming economy New major products to be launched every year
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