IMC STRATEGY OF AMUL CHOCOLATES

IMC STRATEGY OF AMUL CHOCHOLATES

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

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).

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.

AMUL PHILOSOPHY

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

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

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%

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.

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

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

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%

1990s AMUL ADVERTISEMENTIntroduced newer varities of chocolates, like ‘Bindas’, ‘Nuts About You’ and others, targeting teenagers

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

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.

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 %

SURVEY ANALYSIS1) Do you like chocholates?• Yes 97 %• No 3 %2) Who in your family uses chocholates?

Kids33%

Teenagers21%

Youths44%

Old 2%

Kids

Teenagers

Youths

Old

3) What kind of chocolates do you prefer?• Branded• Non Branded

Branded95%

Unbranded5%

Branded

Unbranded

4)What type of chocolates do you prefer?• Wafers• Bars• Small chocolates• Other

Wafers12%

Bars40%

Small chocholaes

45%

Other3%

Wafers

Bars

Small chocholaes

Other

c

5) Which type of television channel do you prefer watching the most?• News• Cartoon• Zee/Star (Entertainment) • Other

news12%

cartoon13%

zee/star38%

other37% news

cartoon

zee/star

other

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

Morning 12%

Afternoon18%

5-8 pm10%8-11 pm

38%

Late Night22%

Morning

Afternoon

5-8 pm

8-11 pm

Late Night

7) Media where the last time you saw a chocolate advertisement was • Television• Hoardings• Radio• Newspaper• Magazine• Other

Television62%

Hoardings20%

Radio5%

Others1%Magazine

3%

Newspaper9%

Television

Hoardings

Radio

Newspaper

Magazine

Others

8) According to you which of the following makes a television advertisement more memorable?

• Jingles• Brand Ambassador• Emotion• Humour• Product display• Others

Jingles35%

B Ambasador40%

Emotion5%

Humour8%

P Display10%

Others2%

Jingles

B Ambasador

Emotion

Humour

P Display

Others

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

Yes88%

No12%

Yes

No

10) Can you recall any of the Amul chocolates Advertisement/ Hoarding?

• Yes• No

Yes20%

No80%

Yes

No

11) Which chocolates do you like the most?

• Amul• Nestle• Cabury• Others

Amul10%

Nestle26%

Cadbury55%

Others9%

12) When do you usually purchase a chocolate?• Festivals• Gifting• Snacks• Just like that

Festivals20%

Gifting21%

Snacks25%

Just like that34%

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

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.

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

Perceptual Map

RECOMMENDATIONS

Modified Positioning

• Something to have just like that.• Gifting

TARGET AUDIENCE

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

Modified Marketing Mix

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

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

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

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.

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.

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.

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.

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.

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

CONTESTSAmul 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 conte

st

• Winners of "Amulya Fly to Bangkok Contest"

BIBLIOGRAPHY

www.rediff.com www.indiainfoline.com www.amul.com www.amuldairy.com www.google.com http://cities.expressindia.com/fullstory.php?newsid=108439

http://www.moneycontrol.com/india/news/business/amul-chocolates-to-getface-lift/20/12/157450

http://www.rediff.com/money/2003/oct/15cadbury.htm

http://www.blonnet.com/2003/06/07/stories/2003060700410500.htm

http://classicindianads.blogspot.com/2008/11/amul-chocolate.html

http://www.fnbnews.com/article/detarchive.asp?articleid=16547&sectionid=11

www.India-stats.com www.Agencyfaqs.com www.indiantelevision.com www.thehindubusinessline.com