This document provides a market analysis and summary of the chocolate market in the UAE. It includes information on the population distribution by age and ethnicity. It also discusses the economic analysis of the country including per capita GDP and expenditure on food. The document analyzes the chocolate market size and growth, consumer preferences around forms and flavors of chocolate, and health trends in the country. It also provides brand analyses of Ferrero Rocher and Lindt chocolate brands, including their positioning, recommendations to improve marketing and sales. Finally, it compares the pricing and display of these brands in hypermarkets and supermarkets.

1. Marketing Audit Report
Rijo Ealias

2. Population Distribution
Total Population of U.A.E. : 4,815,950
Age-wise segmentation:
0 -14 years : 25%
15 - 64 years : 74.60%
> 65 years : 0.9%
* Note: The above information are as of 2010 statistics
Inferences:
• Highest population segment: 15 - 64 yrs very critical for sales and market share
• Premium chocolate brand positioning: ‘Premium chocolate brands used as the perfect gift’ – A premium
brand chocolate gift pack would make more sense to age groups of over 18 yrs.
- allocation of marketing budgets targeting >18 years age group category
• High population of children 15> yrs – 25%; so may market inexpensive products targeting this age group

3. Ethnic Distribution
Inferences:
• Premium Brand - so target market: Middle Class and the Upper Class
- important to understand % of each ethnic group falling in middle class and upper class category
• Different marketing strategy and campaign for different groups considering differences in culture, language,
lifestyle etc.
• Allocation of marketing budgets according to volume of target market in each group

4. Economic Analysis of the country
Per Capita GDP: US$ 38,150
Expenditure on food consumption per head: US$ 9,381 (approx.)
Birth rate: 2.3 children per women
Inferences:
• Average expenditure that each person has to make on food – approximately one fourth of total income; trend of
GDP rising every year, correspondingly Per Capita GDP and also population - so expenditure on food increases
• 10% Increment in the number of people preferring chocolates compared to last year

5. Market summary

6. Market summary
Health related facts
• Obesity rate in GCC region has more than trebled since 1980; adult obesity rate in U.A.E., as measured by
the Body Mass Index stood at 33.7% of total population
• Places U.A.E. at the 10th position globally in obesity rate
• 70% of women in the U.A.E. are obese or overweight
• Around 13% of total population in U.A.E. suffers from diabetes – among the top 5 countries with regards to
the prevalence of the disease
• Consequently, people becoming more health conscious and turning towards healthy and diet foods.
• Demand for healthy products is expected to increase as public awareness about healthier eating habits
grows

7. Market summary
CHOCOLATES
• Consumption of chocolates and biscuits in the country has increased considerably over the last few years
• AC Nielson’s Retail Audit estimate UAE chocolate market at AED 546 million with growth of 27% by value
and 14% by volume (2009)
• 10% annual growth in the consumption of chocolates in
past few years
• Chocolates and biscuits considered as best snack commodity
by more than 25% people as compared to 2.5% about 15 years
back
• More than 98% of people in the country have increased
consumption of chocolates
Choice segmentation
• A study conducted on a group of consumers in UAE based on Brands,
flavors (almond/nuts, fruit and nuts, bitter, orange twist etc.) and
forms (straight-line, count-line, tablets etc.) proved that:
 Consumers prefer a wide choice of brands but prefer to stick to
the same flavor and forms
 Loyalty by flavor and forms stronger in UAE
 Loyalty to brands less stronger – consumers prefer to try out
different brands of chocolates

8. Market summary
• Impact of ‘form’ on consumer choice
 Countline chocolates most popular - 60% of consumers in UAE
 Consumption of tablets - 40%
 Overlap between both forms - 16%
 Gifting chocolates - over 10%
• Reasons for popularity of Countline chocolates:
 Delicious taste
 Does not stick to teeth
 Wafers in the chocolate
 Love the advertising
• Reason for popularity of tablet chocolates:
 Delicious taste
 Excellent lingering taste
 Like the way it melts in the mouth
• Another interesting fact studies was that, the taste and opinion
about chocolates are fairly similar across people of different regions
in the Middle East

9. Marketing Analysis
Chocolate Brands

10. Marketing Analysis
Biscuit Brands

11. Brand Analysis
Tagline
‘Share Something Special’
Unique Selling Proposition (USP)
‘Whole roasted hazelnut encased in a thin wafer shell filled with hazelnut cream and covered in milk
chocolate and chopped hazelnuts wrapped in golden wrapper’
Segmentation, Targeting & Positioning
Geographic: Mainly found in developed and developing countries – found in Hypermarkets, Supermarkets
and Department Stores but not in convenient stores or groceries
Demographic: The brand is generally segmented on the basis of age. The targeted age range of people is
from ages 12 to 40.
(Studies have proven that from the ages of 12 onwards, kids experiment with different brands, and generally get hooked onto a particular
brand past their 20’s and 30’s and then gradually slows consumption in the 40’s due to health complications.)
Psychographics: People who relate to personalities and have strong preferences to socioeconomic status
in life and their lifestyle backed by strong buying power. Ferrero Rocher has entered segments where it can
offer superior value
Ferrero Rocher positions itself with regards to its superior quality, medium-upper income class appeal and
wrapping to give it a high perceived quality and status and as personalized gifts.

12. Brand Analysis
Findings
Ferrero Rocher (FR)
• Confused Pricing strategy against brand positioning: Ferrero Rocher positions itself with regards to its superior
quality and associates with high profile lifestyle and strong socioeconomic status in life; yet, the brand is available
in most small supermarkets and convenient stores starting from AED 3.50 for a small T-3 pack. It seems like the
brand has confused pricing strategy that does not match its superior positioning. It is neither high priced for the
elite segment nor low priced for the mass market – it is stuck in the middle.
• Inappropriate TV commercials: FR’s most popular TV commercials:-
 ‘Ambassador's Reception’ - the brand associated with diplomacy, as that served in high profile elite
gathering, occasions and receptions alongside the finest expensive Champaign; well! I hope the ambassador
realizes that his guests are being served 1 Dh chocolates.
 ‘Food of the Gods’ - again the brand associated itself as the food of the Gods - highest superiority and
crafted with perfection (misinterpretation of the brand positioning)
 ‘Cerith Flinn Ferrero Rocher commercial (2011)’ - an average middle class couple driving a 1995 Volkswagen
Golf gifting a box of FR chocolates to a senior couple and another to an old man. What happened to its elite
brand positioning?
• Little focus on Asian and middle eastern market: Asian and middle east are booming economies while Europe and
America are in recession. Despite the huge potential, very little focus is given to these markets. No TV promotions,
print media or no products specifically targeting the local market. Brand prevalent only because of its overseas
popularity and brand name passed on to local culture.
• Sensible strategy on different brands targeting different segments: Sensible strategy of parent company to
introduce different brands for different segments (eg. Kinder – targeting kids)

13. Brand Analysis
Recommendations
• Define brand identity – Must clearly define a brand identity and positioning and be clear on target market
• Expand product range – Range of products targeting middle class consumers and another range targeting the elite
upper class consumers.
• Rework Pricing Strategy to live up to its brand name and identity – low priced products for the middle class and
expensive products for the upper class
• Rework display strategies -
 Remove premium product range from supermarkets and convenient stores and display only in boutiques with
variety of shapes and sizes
 Sell product to middle class at hypermarkets, selective supermarkets and convenient stores
• Packaging – As observed about shabby packaging and display in hypermarkets, must focus on better packaging and
box design quality
• Advertisement campaigns – Localize advertisements (TV and radio commercials), print media.
• Pyramid shape and gifts - The brand is greatly popular for its pyramid shaped display style; and it positions itself
as the perfect gift. Relating the two,
 promote pyramid shaped (and others) gift boxes with higher prices

14. Brand Analysis
Recommendations
• Use of Social Networking Sites for marketing – Use of Social networking sites like Facebook, Twitter etc. for most
effective and fastest means of marketing
• Local events sponsorships – Improve brand visibility by sponsoring local events and occasions
• Development of new products – FR has not been investing in new products for a long time, thereby limiting its
scope of sales. More new premium products must be introduced to compete in the ever changing and dynamic
market.
• More responsive to local events and festivals
 Target private events and occasions to promote brand – eg. FR pyramid stands, chocolate bouquets etc. for
weddings, birthdays, anniversaries, engagements etc.

15. Brand Analysis
Recommendations
 Target festivals in the region – eg. Christmas, Easter, Ramadan, Eid, Muslim New Year, Diwali etc.

16. Brand Analysis
Tagline
‘Share Something Special’
Unique Selling Proposition (USP)
‘Finest cocoa used for preparing finest chocolates ’
Segmentation, Targeting & Positioning
Geographic: Mainly found in developed and developing countries – found in Hypermarkets, Supermarkets
and Department Stores but not in convenient stores or groceries. The main countries of focus are those in
the Europe and the Americas, and gradually expanding its reach to the Middle East, Australia and other Asian
countries. U.A.E. showed leading sale in the tablet segment.
Chocolate forms: The brand segments its market based on different forms of chocolate: straight-line,
count-line, tablets, assorted etc. The adopt different strategy for different forms.
Demographic: The brand is generally segmented on the basis of age. The targeted age range of people is
from ages 20 to 50.
Psychographics: People who relate to personalities and have strong preferences to socioeconomic status
in life and their lifestyle backed by strong buying power. Lindt has entered segments where it can offer
superior value

17. Brand Analysis
Findings
Lindt
• Excellent brand positioning: Lindt positions itself as master chocolatiers since 1845, and their TV commercials
prove them to be convincing. Also, advertisements for products for special occasions like the Gold bunny, the
Christmas special product etc.
• Wide Product Range: Wide range of products (flavors, types, sizes etc.) targeting both middle class and upper class
segments. Wider target market segment- prospect of selling more products, increasing sales.
• Sensible investment on development of new products: Investment in new products and flavors – new flavors.
• Little focus on Asian and middle eastern market: Asian and middle east are booming economies while Europe and
America are in recession. Despite the huge potential, very little focus is given to these markets. Little attention
given to promotion of products in the local market.
• Poor Brand awareness in the region: Unlike Ferrero Rocher, Lindt was unable to create a strong awareness in the
market about the brand. Few people know the brand and even fewer would recommend the brand to another.
Here, premium quality and taste would not help unless effective communication and awareness of products.
• Good brand visibility in stores: Good visibility of products in stores (and well arranged), however few people buy
the brand unless they create brand awareness campaigns to market the product.
• Limited locations promoting Lindt premium product range: Several Lindt boutiques and cafés in different parts of
Europe and America, however, none in the U.A.E., hence limited sales of premium product range.
• Aggressive promotions for occasional product range: Extensive in-store promotions and displays of occasional
product range (eg. Lindt Golden Bunny Gondola displays in major hypermarkets promoting Easter products and
likewise for Christmas seasonal products)

18. Brand Analysis
Recommendations
• Aggressive marketing targeting local market – Must enhance brand awareness through marketing campaigns-
billboards and hoardings, print media, radio ads etc. (eg. London Dairy hoarding opp. Danata)
• Aggressive campaigns of gift packs – Aggressive campaigns promoting gifting and premium products range
• Aggressive campaigns during occasion and festivals – Brand specific to occasions and festivals available (like The
Lindt Golden Bunny etc.) but minimum awareness and knowledge of these exclusive products. Gondola displays at
hypermarkets not primarily efficiency for product marketing – must exploit other means of marketing also and use
gondola displays as support marketing strategy.
• Take advantage of strong experience in industry – The brand must highlight and take advantage of its 150 years of
presence in the industry in its marketing campaigns and commercials.
• Strategic availability of products in different locations – Must very carefully assess strategic locations for
availability of different products at different locations.

19. Brand Analysis
Recommendations
• Take advantage of strong experience in industry – The brand must highlight and take advantage of its 150 years of
presence in the industry in its marketing campaigns and commercials.
• Strategic availability of products in different locations – Must very carefully assess strategic locations for
availability of different products at different locations.
• Premium Brand visibility – Boutiques and exclusive Lindt cafes in major shopping malls and outlets for improved
brand visibility

20. Brand Analysis
Recommendations
• Sample testing at major hypermarkets and supermarkets – Enhance brand awareness and its quality through
sample testing kiosks at major hypermarkets and supermarkets targeting mass middle class shoppers.
• Brand Ambassador and event sponsorship – Must use brand ambassador more effectively in its campaigns and
advertisements – eg. ‘Roger Federer’- Sponsorship for tennis tournaments in the region and use Roger Federer to
market the product among media, tennis enthusiasts and Federer fans.

21. Brand Analysis
Recommendations
• Alliances with other brands – Eg. Ferrero Rocher cakes at Baskin Robins, Caesar's Confectionary
• Promotion of brand at Duty Free/Travel Retail – With increased tourism and rising number of passengers every
years into the country, must target promotion campaigns at Duty Free/Travel Retail stores; exclusive boutiques and
cafes at airport shopping areas.
• Loyalty programs on website – May launch brand loyalty programs and fan clubs for strengthening of existing
brand loyal consumers
• Social Networking Sites – Make the most of today’s world of Social Networking sites such as Facebook, Twitter etc.
for promotion brand

22. Brand Comparison
Pricing Structure & Display
HYPERMARKET: Lulu Hypermarket, Al Qusais
• 35gm - AED 3.75
• T-3x16 3’s, 600gm - AED 59.95
• 100gm - AED 8.50 ~ AED 10.00
• T-3 3’s, 37.5gm - AED 3.75
• 150gm - AED 17.50
Findings: • 500gm shorts - AED 55.00
• Limited Product range • 200gm shorts - AED 27.50
• Poor visibility: Products were lost in the shelf; has to • 350gm Swiss naps - AED 42.00
search for it
Findings:
• Poor packaging: Shabby packaging design
• Wide Product range: Several range of products to choose
• Position on shelf: Above line-of-sight; not catchy to from (different flavors, sizes of packages, chocolate forms –
the eye tablets, straight-lines etc.)
• Attractive packaging: Nice and elegant packing and neatly
arranged on shelf – appropriate to the brand positioning
• Position on shelf: Occupies large area of shelf, along and
above line-of-sight. One cannot miss the product
• Strategic Product range availability: Only products targeting
middle class shoppers available, premium range not available
– protect the high quality and expensive brand perception

23. Brand Comparison
Pricing Structure & Display
SUPERMARKET: Talal Supermarket, Al Qusais
• T-24, 300gm - • 35gm -
• T-16, 200gm - • 100gm -
• T-3, 37.5gm - • 150gm -
• 500gm shorts -
Findings:
• 200gm shorts -
• Visibility: Good visibility on shelf , easily noticeable.
• 350gm Swiss naps -
• Good packaging: Good packaging and display of
products Findings:
• Position on shelf: Closer to the entrance; at the start • Exclusive shelf for Lindt: Nice shelf exclusively for Lindt
products, visible from entrance of supermarket
of the chocolate section on shelf, along line-of-sight
• Attractive packaging: Nice and elegant packing and neatly
arranged on shelf – appropriate to the brand positioning
• Limited Product range: Several new products not available
(eg. new chili flavor, cranberry, madagascar etc.). Only fast
moving and popular products targeting middle class shoppers
available, premium range not available – protect the high
quality and expensive brand perception

24. Brand Comparison
Pricing Structure & Display
CONVENIENCE STORE: Zoom, ENOC - Al Khail Road
Emirat, Emirat - Al Nahda
• T-24, 300gm - AED 39.25 • Not available
• T-16, 200gm - AED 26.00
• T-3, 37.5gm - AED 5.00
Findings:
• Visibility: Good visibility at Zoom – products
displayed on top 2 racks of shelf. However, poor
visibility and location at Emirat store – products
displayed in the corner of the store at the bottom
most rack of shelf, almost hidden. Have to ask for
product
• Good packaging: Good packaging and display of
products
• Position on shelf: At Zoom – closer to the entrance,
easily located in store; At Emirat – at the corner of
the store farthest among all chocolate brands almost
hidden

25. Market summary
BISCUITS
• Food industry one of the leading manufacturing sectors in the U.A.E. with an investment of around AED 32
billion in 2008 making up 42% of total investment in manufacturing
• 9% of the total number of manufacturing units make up food establishments in the country
• Bakery industry, mainly constituting biscuits and wafers have an investment of US$82 million and consists of
around 73 operating units in U.A.E.
• Biscuits, cookies and wafer consumption in U.A.E. is approximately 30,000 tones annually, that is 6kg per
person and its contribution is 20% by value and 17% of total volume of biscuit sales in GCC.
• 17% annual growth in the consumption of biscuits in past
few years
Volume of biscuits consumed in GCC
20%
UAE
80% Other countries
• Major brands are Americana, Good day, Oreo, Tiffany, Parle etc.
• U.A.E.’s biscuit market is worth over Dhs 500 million a year

26. Brand Analysis
Parent Company
Bahlsen GmbH & Co. KG
Tagline
‘Quality since 1891’
Findings
Leibniz
• Little focus on Asian and middle eastern market: Asian and middle east are booming economies while Europe and
America are in recession. Despite the huge potential, very little focus is given to these markets.
• Poor Brand awareness in the region: Leibniz was unable to create a strong awareness in the market about the
brand. Few people know the brand and even fewer would recommend the brand to another. 8 out of 11 subjects
in a survey have not heard of the brand or purchased any of its products
• Lack of communication of brand positioning: Market unaware of brand value and positioning
• Limited Product range: Very limited product range available in market
• Displays in stores: Limited visibility of products in stores
• Unaware of market needs and demands: Seems like lack of knowledge and awareness of market needs and
demands

27. Structure of Market Share

28. Brand Analysis
Recommendations
Leibniz
• Re-define brand identity - Brand needs to clearly re-define an identity on brand value against brand positioning
and be clear on what market segment to target
• Expand product range – Leibniz must take efforts in developing new products
• Development of new products – has not been investing in new products for a long time, thereby limiting its scope
of sales. More new products targeting wider market must be introduced to compete in market
• Rework display strategies – The brand must rework their display strategies in stores.
 Occupy larger space in the shelf for greater product visibility
 Relocation of position towards the entrance of section of stores rather than at the end where product almost
unnoticed
 Choose location at line-of-sight on shelf again for better visibility of products; if targeting kids segment, must
place lower to be able to be viewed by kids
• Alliances with other brands – May have alliances with tea brands for combined marketing campaigns of its tea
biscuits
• Greater focus on sales at convenient stores – Biscuits being considered as a popular snack that one grabs on the
go, the brand must extend its focus of sales to convenient stores
• Conduct market research on local needs and demands – Conduct marketing survey or research to identify the
needs of the local market and introduce new products accordingly

29. Brand Analysis
Recommendations
Leibniz
• Improve popularity among kids – Games/puzzles with each pack for encouraging sales among kids segment. Over
25% of total population comprises of age group below 14 years. Greater sale in this segment directly impact
overall sales numbers.
• Sample testing at major hypermarkets and supermarkets – Enhance brand awareness through sample testing
kiosks at major hypermarkets and supermarkets targeting all types of shoppers
• Combo pack offers – Combo pack offers at competitive prices to attract price sensitive shoppers

30. Brand Analysis
Parent Company
Walkers Shortbread Ltd.
Tagline
‘To make the world’s finest shortbread’
Findings
Walkers
• Quality assurance: Quality assurance by limiting production as the website states “the founder’s personal
guarantee is still carried on every pack, to confirm that Walker’s products are made only with the finest ingredients
obtainable using its Scottish classic recipe.
• Production from home factory in Scotland: Yet another measure to guarantee quality is by keeping its factory at
Scotland and not expanding to other places.
• Significance to quality and not market share: Mission to focus on quality of products and not quantity of sale and
market share
• Classy packaging and design: The shortbreads are well clad in neat and classy packaging that is appealing to the
eye.
• Limited availability of products: Availability of products limited to shopping malls and hypermarkets – premium
brand positioning
• Poor marketing of brand: Little focus on brand marketing and quality of products
• Little focus on GCC market: Sales focus in European market; limited focus on Arab market

31. Structure of Market Share

32. Brand Analysis
Recommendations
Walkers
• Glocalized marketing strategies – Design marketing strategies localized to the GCC region while maintaining its
original classic Scottish brand positioning and quality.
• Focus on display strategies - Relocation of position towards the entrance of section of stores rather than at the
end where product almost unnoticed
• Alliances with other brands – Form alliances and be included in premium gift packs
• Rework brand positioning – Brand positioning as premium quality for gift products
• Communicate health aspects of product – Market health related aspects of product highlighting use of fresh
flour, pure creamery butter, sugar and salt and guaranteed to contain no artificial flavoring, coloring or additives.
Importance to healthy diet and demand for healthy products on the rise due to increasing health concerns among
local population
• Discount voucher for Walkers products – Improve brand and product awareness in local market by giving away
discount vouchers for Walkers gift packs
• Availability of products – Biscuits, shortbreads, cookies etc. being considered as a popular snack that one grabs on
the go, the brand must extend its focus of sales to convenient stores
• Advertisement campaigns – Must enhance brand awareness through marketing campaigns like print media, TV
and radio ads etc.
• Use of Social Networking Sites for marketing – Use of Social networking sites like Facebook, Twitter etc. for most
effective and fastest means of word-of-mouth marketing
• Sample testing at major hypermarkets and supermarkets – Enhance brand awareness and its quality through
sample testing kiosks at major hypermarkets and supermarkets targeting mass middle class shoppers.

33. Brand Comparison
Pricing Structure & Display
HYPERMARKET: Lulu Hypermarket, Al Qusais
• Ass Shortbread, 160gm - AED 20.40
• 100gm - AED 4.00
• Chocolate chips s/b, 125gm - AED 15.60
• 100gm mini - AED 4.70
• Choco chunk, 150gm - AED 12.20
• 100gm zoo - AED 4.75
• Strawberry & cream150gm - AED 12.20
Findings: • Choco chips mini, 200gm - AED 24.50
• Limited Product range
Findings:
• Poor visibility: Products were lost in the shelf; has to
• Wide Product range: Several range of products to choose
search for it
from
• Display location: located at the end of the
• Neat display: Nice and elegant packing and neatly arranged
section, have to search for the brand
on shelf
• Position in shelf: Above line-of-sight; not catchy to
• Position in shelf: Well positioned in shelf. Occupies large
the eye. If target market- kids, then poor position as
area of shelf, along and above line-of-sight.
may not be visible to the kids (passive buyers)
• Display location: Ineffective location in section, located at the
extreme end of the section-more effective if place at entrance
end.

34. Brand Comparison
Pricing Structure & Display
SUPERMARKET: Talal Supermarket, Al Qusais
• Not available
• 100gm - AED 4.00
• 100gm mini - AED 4.70
• 100gm zoo - AED 2.00
Findings:
• Limited Product range
• Poor visibility: Products were lost in the shelf; has to
search for it
• Display location: located at the end of the section,
have to search for the brand
• Position in shelf: Above line-of-sight; not catchy to
the eye. If target market- kids, then poor position as
may not be visible to the kids (passive buyers)