1. IMC STRATEGY OF AMUL
CHOCOLATES
IMC STRATEGY OF AMUL
CHOCHOLATES
2. 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.
3. 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.
4. 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.
5. RESEARCH INSTRUMENTS
• Primary Research
– Questionnaire
• Secondary Research
– Internet
– E-Journals
– Newspaper Articles
– Research papers
6. SAMPLING
1. Sampling Technique : Non probability sampling
2. Sample Unit : People who buy chocolates available
in retail outlets, superstores, etc ( Convenience
sampling)
3. Sample size : 100 respondents (Age ranging
between 8 yrs to 65 yrs)
4. Method : Questionnaire (including email).
5. Data analysis method : Graphical method.
6. Area of survey : All over India( email questionnaire).
7. Company Profile
• First milk union KAIRA DISTRICT CO-
OPERATIVE MILK PRODUCERS’ UNION
Started in 1945.
• Selected Brand name AMUL in 1955.
• Amul means “Priceless” in sanskrit.
• Entered in chocholates segment in 1970
• Sales Turnover Rs 52554 million 2007-08.
14. 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 1.9 kilograms in developed markets such as the United
Kingdom
• Over 70 per cent of the consumption takes place in the urban markets.
• The chocolate wafer market (Ulta Perk etc) is around 35 % of the total
chocolate market and has been growing at around 13% annually.
• As per Euromonitor study, Indian candy market is currently valued at
around USD 664 million, with about 70%, or USD 461 million, in sugar
confectionery and the remaining 30%, or USD 203 million, in chocolate
confectionery.
• Entire Celebrations range marketshare is 6.5%
15. COMPETITION SCENARIO
• The chocolate market in India has only three big players,
Cadbury(79%), Nestle(14%) and Amul (5%)
• New brands such as Sweet World, Candico and
Chocolatiers are present in several malls.
• The largest target segment for Cadbury is youth.
• Delhi-based Chocolatiers, started with a small shop in
south Delhi’s Chittaranjan Park and has now ventured
into malls and multiplexes in NCR, Mumbai and
Bangalore, with focus on high-end or designer
chocolates, a niche market of their own.
• Candico India is aiming for 400 locations across malls
and multiplexes in the country by 2010.
16. CONSUMER TREND
• Mithai- is getting substituted by chocolates - Convenient packaging and
better shelf life.
• Sudden spurt in advertisement between July & Sep in festival seasons.
• The range and variety of chocolates available in malls seems to be
growing day by day, which leads to lot of impulse sales for chocolate
companies.
• Chocolates which used to be unaffordable, is now considered mid-priced.
• Designer chocolates have become status symbols.
• Consumers can choose from wide range of chocolates. so many SKUs
with almonds, raisins and all sort of nuts. Latest 5 star crunchy and Ulta
Perk.
• In past, consumers had negligible inclination for dark chocolates. But now
we have seen a change in the Indian palate, which is increasing the base of
this sub-segment
17. ADVERTISEMENT TRENDS
• Chocolate advertising rose by 30 per cent.
• Maximum chocolate advertising was during Raksha Bandhan.
• 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, followed by Hindi movie with 13% share.
• 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
22. 2003....
• Increase in sales due to cadbury worm
controversy.(20 % increase in sales)
• To boost sales, Amul launched three new
chocolates in under the brands Fundoo, Bindaas
and Almond Bar.
• 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, AMUL's festival season pack "Rejoice"
came with six chocolates, up from three during the
festive season before
23. 2004-Repositioning
• Launch of ‘Chocozoo’ - chocolates in shapes of motorcycles, aeroplanes, animals
and comic charaters .
• Targeted Kids.
• Introduced economic variants of chocolates priced at Re 1, Rs 3 and Rs 5.’’
• A tub of ‘Chocozoo’ chocolates were priced at Rs 138 for 46 units of chocolates,
but retailers can sell the chocolates loose, at Rs 3 each. This, was done to attract
kids.
• Trendy Look – Removed the cute little butter girl and cheese boy from its wrappers.
New wrappers, designed by a US firm, trendy and colourful.
• A new tag line: Amul Chocolate — For Someone You Love.
• Not merely gifts, but make a more emotional pitch with emphasis on Amul
Chocolates for love on all occasions.
24.
25. 2007 – Strategy Rework
• Reworked its strategy in the chocolate category to push its chocolate
product sales.
• A new product portfolio.
• Strategy was to identify the market gaps and try and fill them as done in
the past with their sugar free and Choco Zoo, both of which have been
appreciated by the consumers.
• Placed its chocolate products at lesser price points compared with its
competitors.
• Concentrating on the niche segment such as health chocholates
• Launched Trix, a wafer biscuit coated with rich milk chocolate.Cadbury's
Perk and Munch from Nestle are other two major players in the wafer
chocolate segment. Priced at Rs 5, available in strawberry and
chocolate flavours.
• Introduced father son advertisement, Rose day advertisement.
• Corporate Image advertisement.
• Market share increased to 10 %
26. SURVEY ANALYSIS
1) Do you like chocholates?
• Yes 97 %
• No 3 %
2) Who in your family uses chocholates?
Kids
33%
Teenagers
21%
Youths
44%
Old
2%
Kids
Teenagers
Youths
Old
27. 3) What kind of chocolates do you prefer?
• Branded
• Non Branded
Branded
95%
Unbranded
5%
Branded
Unbranded
28. 4)What type of chocolates do you prefer?
• Wafers
• Bars
• Small chocolates
• Other
Wafers
12%
Bars
40%
Small
chocholaes
45%
Other
3%
Wafers
Bars
Small chocholaes
Other
c
29. 5) Which type of television channel do you prefer watching the most?
• News
• Cartoon
• Zee/Star (Entertainment)
• Other
news
12%
cartoon
13%
zee/star
38%
other
37% news
cartoon
zee/star
other
30. 6) Which time slot do you prefer for watching television?
• Morning
• Afternoon
• 5-8 pm
• 8-11 pm
• Late Night
Morning
12%
Afternoon
18%
5-8 pm
10%
8-11 pm
38%
Late Night
22%
Morning
Afternoon
5-8 pm
8-11 pm
Late Night
31. 7) Media where the last time you saw a chocolate advertisement was
• Television
• Hoardings
• Radio
• Newspaper
• Magazine
• Other
Television
62%
Hoardings
20%
Radio
5%
Others
1%
Magazine
3%
Newspaper
9%
Television
Hoardings
Radio
Newspaper
Magazine
Others
32. 8) According to you which of the following makes a television advertisement
more memorable?
• Jingles
• Brand Ambassador
• Emotion
• Humour
• Product display
• Others
Jingles
35%
B Ambasador
40%
Emotion
5%
Humour
8%
P Display
10%
Others
2%
Jingles
B Ambasador
Emotion
Humour
P Display
Others
33. 9) Have you heard of Amul Chocolates?
• Yes
• No
Yes
88%
No
12%
Yes
No
34. 10) Can you recall any of the Amul chocolates
Advertisement/ Hoarding?
• Yes
• No
Yes
20%
No
80%
Yes
No
35. 11) Which chocolates do you like the most?
• Amul
• Nestle
• Cabury
• Others
Amul
10%
Nestle
26%
Cadbury
55%
Others
9%
36. 12) When do you usually purchase a chocolate?
• Festivals
• Gifting
• Snacks
• Just like that
Festivals
20%
Gifting
21%
Snacks
25%
Just like that
34%
37. AMUL SWOT ANALYSIS
• Strengths-
– Parent support
– Strong distribution network
• Weakness
– Raw material supply – volatile prices
– Chocolates - comparatively small business unit
• Opportunities
– Low penetration, consumption;
– Scope of launching new variants and extensions.
• Threats
– Foreign multinationals
38. CADBURY
• Chocolate sales of Rs 514.03 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, complete category coverage
• Distinctive taste, captured sensitive price points
• Eclairs Rs 1, Chocky Rs. 2, 5 Star Rs. 5 and Rs. 10,
• Dairy Milk Rs. 5,10,15, 25 and 100
• Fruit and Nut Rs 20
• Dry Fruit Range Rs 25- 50
• Celebration Rs 50 and 100
• Rich Chocolates Rs 100, 250, 450.
39. Nestle
• Chocolate sales – 346.51 Rs. Crore
• 14% market share
• Chocolates 13-15% of total revenue
• Product range includes Classic, kit Kat,
Munch, Choco stik, Bar one
46. Product
Introduction of new range of chocolates to
suit different targeted segments
• Variety
• Design – Plain bars, filled, chocolate
covered wafers,
• Sizes and Packages – wide range to suit
key price points and occasions
47. Price
• Pricing – In line with
Cadbury’s offerings
• Incentive schemes – eg.
Nestle’s Maha munch give
more value for the same
price
• Priced at key price points
like Rs.5
48. Promotion
• Must choose a Brand ambassador-
e.g.Rani Mukherjee for munch ( targeting
youth), Cadbury is planning to rope in
Genelia D’Souza of JTYJN fame.
• ADVERTISING
– Increase in frequency, At prime time.
– Must increase advertising expense from the
current 1% of the revenue to 5-6% as done by
other competitors
49. Place
• Make use of its strong
distribution structure.
• Urban as well as
rural.
• New Regional Sales
Offices to increase
width and penetration
and focus in rural
areas.
50. RECOMMENDATIONS
• Must introduce Festival Gift boxes like cadbury
Celebration.
• Must offer low-priced packs for the masses and launch
new products to target different age groups.
• Must focus on the availability and affordability of its
products.
• Should increase R&D spending to improve the quality &
taste.
• Must introduce at price points such as Rs 1, Rs 2, Rs 5
(13gms), Rs 10 (26gms), Rs 15 (43gms), Rs 50 and
even at Rs 100
• Visibility at retails points. To increase the visibility of its
products, target areas near bus stops, colleges,
schools, cafes and places of entertainment like
theaters and amusement parks.
51. 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.
• Rejuvenate and strengthen the existing brands
• Extend its reach to semi-urban and rural markets.
• Sell its products through 'non-traditional' outlets like music stores
(such as MusicWorld), malls, renowned bookstores and popular
apparel outlets (such as Pantaloons and Wills Sport boutiques).
• To put chocolate carts (similar to traditional bicycle ice-cream
carts) in malls and near college campuses to increase its reach.
• Increase frequency of advertisement.
• Company should introduce sales promotion schemes like free
weight, pranky, tattoo, contest, free gifts etc.
• Advertisement can be done with the help of animations that attracts
children and teenagers because chocolates are consumed largely
in this segment.
52. AMUL PARLOURS
• Amul has recently entered into direct
retailing through "Amul Utterly Delicious"
parlours created in major cities Ahmedabad,
Bangalore, Baroda, Delhi, Mumbai,
Hyderabad and Surat.
• 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. Local advertisement must
mention the exclusive Amul shops of the city.
53. CHOCOLATE BOUTIQUES AND SHELVES
• Amul must come up
with its own chocolate
boutiques.
• Form its own shelves
in retail shops and
take ownership of
maintaining them.
54. 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.
55. 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.
56. TV SHOWS
• Chhote Ustad
•Amul Voice of India
•Amul Surbhi
• Chocholate advertisement
in between the shows
•Free Chocholate Gift
Hamper to winners
57. CONTESTS
Amul can start some contest for chocolates as it is
doing for some of its other products.e.g.
• Amul Chef of the Year, 2009 contest
• Amul Maharani Contest, 2008-09
• Amul Food Festival Contest
• Winners of Slogan likho Disneyland dekho contest
• Winners of "Amulya Fly to Bangkok Contest"
Mithai- the traditional Indian sweats is getting substituted by chocolates
Instead of buying sweets on Raksha Bandhan, sisters prefer offering chocolates to their brothers.
This is the reason for sudden spurt in advertisement between July & Sep by most of the companies
The range and variety of chocolates available in malls seems to be growing day by day, which leads to lot of impulse sales for chocolate companies
Chocolates which use to be unaffordable, is now considered mid-priced.
Convenience over Mithai in terms of packaging and shelf life in making both middle class and rich Indians opt for chocolates
Designer chocolates have become status symbols.
Cadbury initial communication for Celebrations was concentrated on occasions like Diwali and Rakshabandhan. Over the last seven to eight years, the brand emerged as a good gift proposition for occasions and enabled people to come closer.
Consumers can choose from wide range of chocolates, which initially was limited to Milk chocolates like DairyMilk and MilkyBar. In past few years we have seen so many SKUs with almonds, raisins and all sort of nuts. And how can we forget latest 5 star crunchy and Ulta Perk, which has opened new windows for consumers
In past, consumers had negligible inclination for dark chocolates. But now we have seen a change in the Indian palate, which is increasing the base of this sub-segment
