College : SNJB’s COE, Chandwad.

Class : MBA 1st year.

Guidance By : Hon. Prof. Mr. U. S. Kasar Sir.

Industry : Chocolate Industry.

Presenters : Gaziyani Md. Hasnain

Rahul O. Bhandari

Khushbu Mutha

Bhagyashree Mankar

Abu Swaleh

Final Presentation

Nature of the Industry

1. The chocolate industry in India works at different levels that include

chocolate giants like Cadbury's , Dairy Milk, etc, small

chocolate manufacturers, chocolate retailers, chocolate importers

and people who make chocolates at home

2. Diversification and innovation is the need of the hour and chocolatiers

are exactly doing that to increase their client-base.

3. The population of India presents multiple avenues for companies to

foray into India. "The regulatory environment, too, has become

conducive for foreign players to operate in the country. There is

immense scope that the country presents to players in terms of hiring

home grown talent to grow business, given the educational boom.

This clearly means that the three main factors like demand for

products, conducive regulations and customized talent are abundant

in India, which makes it inevitable for foreign players to ignore India.

Players in the Industry1. Cadbury's India Limited

2. Nestle India

3. Amul India

4. Gujarat Co-operative Milk Marketing Federation

5. Cocoa Manufactures and Processors Co-operative (CAMPCO)

6. Bars Count Lines Wafer Panned Premium

7. 5-Star, Milk

8. Mars chocolate

9. Krafts Food

10. Ferrero

Market share of top 3 and bottom 3 players

Cadbury Nestle Amul Mars Krafts food Ferrero

70% 24% 3% 1% 1% 1%

Market Share

70%

24%

3%

1%

1%

1%

Market share of top 3 and bottom 3 players

Cadbury Nestle Amul Mars Krafts food Ferrero

Classification Of Players

Market Leader

• Cadbury

Challengers

• Nestle India

• Amul India

Followers

• CAMPCO

• Bar Count

Nichers

• Mars Inc.

• Treat Perk

• Tiffins

Positioning and strategies of Key Players

1 - Dairy milk

• The Cadbury ad campaign designing

Team at Saatchi and Saatchi aimed at first

retaining shoppers and ensure that they do

not move to other brands. The Cadbury Rich

dry fruit collection was projected as the

ultimate gifting solution for festivals like Diwali.

2 - Amul India

The tag line "for someone you love",

again symbolizing it as something very

precious for your loved one creating a niche

image.

3 – Nestle India

•Nestlé India put it, "It is the result of an

experience of 135 years that Nestlé gives us

‘Good Food, Good Life‘.“

Marketing Strategy Of Major Players

PRODUCTA - PRODUCT VARIANTS

B - PRODUCT INNOVATIONS

C - PACKAGING

PRICEA - VOLUME LED GROWTHSTRATEGY

B - HIRES AT KEARNEY TO CURBCOSTS

C - EARNINGS SENSITIVITYFACTORS

PLACEA - PLANT LOCATIONS

B - DISTRIBUTION

C - NATURE OF RETAIL OUTLET

PROMOTIONA - Advertisements

B - Celebrities endorsements

C - From kids to youth

Worldwide Market share of all players of

Chocolate world

Professional Trade bodies

1. Fine Chocolate Industry Association (FCIA)

2. American Association of Candy Technologists (AACT)

3. National Confectioners Association

4. The Associated Chambers of Commerce and Industry of India

Background Of Top 3 Players

1- Cadbury

John Cadbury was born in B’ham to

Richard Cadbury who was from a

wealthy Quaker family in U.K. in

1797.

Establish cause was alcohol.

Tea dealer in 1818 in leeds.

Returning to B’ham in 1824 &

opened a shop at Bull Street.

1831-rented factory for drinking

chocolate & cocoa.Larger factory with his

brother Benjamin and started

selling 16 type of drinking

chocolates - largest till 1960s.

Both brothers became partner in 1848 for 7 years.

Founded factory in bournville in 1861- largest chocolate production in U.K..

Opened an office in London & received a Royal Warrant as a manufacturer

of chocolate and cocoa to Queen Victoria in 1854.

1897- Manufactured 1st milk chocolate. In 1899 factory employed 2,600

people and became corporate.

1950- Cadbury opened its first overseas factory near Hobart, Tasmania.

1969 - Cadbury merged with Schweppes to form Cadbury Schweppes. Schweppes

was a well-known British brand that manufactured carbonated mineral water and soft

drinks.

Today Cadbury Schweppes is the largest confectionery company in the world,

employing more than 70,000 employees.

Cadbury India

In India, Cadbury began its operations in 1948 by importing chocolates. It

today has 5 company-owned manufacturing facilities at Thane, Induri

(Pune), Malanpur (Gwalior), Bangalore & Baddi (Himachal Pradesh) & 5

sales offices in 5 metros. The corporate office is in Mumbai.

It works as teams to convert products into brands.

Cadbury enjoys a value market share of over 70% - the highest Cadbury

brand share in the world! The brand Cadbury Dairy Milk is considered the

"gold standard" for chocolates in India. The pure taste of CDM defines the

chocolate taste for the Indian consumer

Background Of Top 3 Players

2- Nestle

•Nestle was founded in 1867 in Geneva, Switzerland by

Henri Nestle. Nestle's first product was "Farine Lactee

Nestle", an infant cereal.

•In 1905, Nestle acquired the Anglo-Swiss Condensed Milk

Company.

•Nestlé's relationship with India started in 1912.

•It began trading as The Nestlé Anglo-Swiss Condensed

Milk Company (After India's independence in 1947, the

economic policies of the Indian Government emphasised

the need for local production.

•Nestlé responded to India's aspirations by forming a

company in India and set up its first factory in 1961 at

Moga, Punjab.

Henri o nestle

•Nestlé India’s first production facility, set up in 1961 at Moga (Punjab), was followed

soon after by its second plant, set up at Choladi (Tamil Nadu), in 1967. Consequently,

Nestlé India set up factories in Nanjangud (Karnataka), in 1989, and Samalkha

(Haryana), in 1993.

•This was succeeded by the commissioning of two more factories - at Ponda and

Bicholim, Goa, in 1995 and 1997 respectively.

•The seventh factory was set up at Pantnagar, Uttarakhand, in 2006.

The 8th Factory was set up at Tahliwal, Himachal Pradesh, in 2012.

Nestle India

•Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle India manufactures a

variety of food products such as infant food, milk products, beverages, prepared dishes

& cooking aids, and chocolates & confectionary.

• Some of the famous brands of Nestle are NESCAFE, MAGGI, MILKYBAR, MILO, KIT

KAT, BAR-ONE, MILKMAID, NESTEA, NESTLE Milk, NESTLE SLIM Milk, NESTLE

Fresh 'n' Natural Dahi and NESTLE Jeera Raita.

Background Of Top 3 Players

3- Amul

• Formed in 1946, is a dairy cooperative movement in India.

• A brand name managed by Gujarat Co-operative Milk Marketing Federation(GCMMF)

• Jointly owned by 2.79 million milk producers in Gujarat

• Spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world.

• Overseas markets - Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries

• Fresh plans of flooding the markets of Japan & Sri Lanka.

• Dr Verghese Kurien, former chairman of the GCMMF -the man behind the success of Amul.

• Has a 15% market share in the Rs 15,000 crore milk category, and a 37% share in the Rs 900 crore organized ice-cream segment.

Amul Abroad

Background Of Bottom 3 Players

1- Mars-wrigley

• Type : private

• Industry : confectionary

• Founded : 1911 in Tacoma, Washington, USA.

• Founder : Frank C.Mars

• Products : milky way, bounty, mars, snickers.

• Revenue: US$30 billion

Background Of Bottom 3 Players

2- Kraft Foods

• Type : public

• Industry : Food Processing.

• Founded : Englewood, Chicago, USA

• Products : ice cream, cheese, milk.

• Revenue: US$ 40.4 billion

Background Of Bottom 3 Players

3-Fererro

•Type : private

•Industry : Food

•Founded : 1946

•Founder : Pietro Ferrero

•Products : confectionary.

•Revenue : 6.2 billion euros

About CEOs Of Top Players

1 - Irene Rosenfeld(CEO of Mondelez International Inc., owner of Cadbury)

Born May 3, 1953

Married with 2 Daughters

Fortune 500 Rank: 53

Compensation: $26.3 Million

Education:

Ph.D. in Marketing and Statistics

Master of Science in Business

Bachelor of Arts in Psychology from Cornell University

Childhood career ambition: President of the United States

Favorite Kraft product: Kraft macaroni and cheese and Oreo cookies are high up on the list too.

Hobbies: Play the piano and enjoys rollerblading

About CEOs Of Top Players

2 - Paul Bulcke(CEO of Nestle)

•Paul Bulcke (born 1954), is a Belgian businessman who was appointed Chief

executive officer (CEO) of Nestlé on 20 September 2007 and officially started in his new

role in April 2008.

•He graduated as a commercial engineer at the Katholieke Universiteit Leuven and is

an alumnus of the Vlerick Leuven Gent Management School. He also attended the

program for Executive Development at the Swiss leading business school International

Institute for Management Development (IMD) in Lausanne.

•In 1979, aged 25, he started working for the Nestlé group and worked in different

countries, including Switzerland, Spain, Belgium, Peru, Ecuador, Chile, Portugal, Czech

Republic and Germany. Before his appointment as CEO of Nestlé, he was the Head of

America (EVP of Americas divisions).

•Bulcke has described Nestlé under his tenure as 'une force tranquille' (English: 'calm

strength'). He is known for having a reserved, quiet personal manner.

•On 25 May 2012, he received the VMA Award from the Vlerick Leuven Gent

Management School for his "lifelong career, which has been distinguished by sustained

integrity, exceptional management capacity and inspiring leadership“.

Organizational Structures of Chocolate Companies

1 -Cadbury

2 - Nestle

Corporate Social Responsibility

1 - Cadbury

A - Migratory birds stop

over at Bangalore factory

B - Pioneering cocoa cultivation in

India

C - Bangalore factory: the sun

shines at night

D - Non-formal school set up by

Cadbury for children of migrant

workers in Baddi

Corporate Social Responsibility

• Nestle’s education programs have reached 9 million people

•Nestle India supports local schools, themaintenance of public parks and green belts.

•Water Education Programme in India, informed the farmers on the proper use of water.

•Nestle provides rural farmers with technical support via Chilli Farming Project.

2 - Nestle

Continual improvement of the environmental performance along the value chain

Regulatory Bodies

1- ICCO (The International Cocoa Organization)

2- NCA( National Confectioners Association)

3- FSSAI (The Food Safety and Standards Authority of India)

Actions by regulatory bodies

1. China to Establish National Standard for Food Grade Paraffin Wax

2. India to Impose Trans Fats Limits for Packaged Foods

3. India Releases Draft Changes to Labeling Requirements

4. Sugarless Gum Included on Brazil’s Proposed Retaliatory Tariffs List

5. South Korea Proposes Zero Tolerance for Salmonella in Cocoa Products and

Chocolate

Issues Affecting Chocolate Industry

1. Child Labor

2. Deforestation 3. Full sun cocoa

Solutions By Governments

1-Education 2-Shade cacao

Dec ' 09 Dec ' 08 Dec ' 07 Dec ' 06 Dec ' 05

Sources of funds

Owner's fund

Equity share capital 31.07 32.18 33.20 34.36 35.71

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 499.73 432.22 372.94 357.73 398.10

Loan funds

Secured loans 2.28 32.02 1.28 3.26 3.71

Unsecured loans 9.89 9.68 7.48 6.75 4.51

Total 542.96 506.11 414.90 402.10 442.03

Uses of funds

Fixed assets

Gross block 724.75 586.94 544.77 430.21 395.50

Less : revaluation

reserve - - - - -

Less : accumulated

depreciation 372.09 335.55 299.18 265.13 234.88

Net block 352.66 251.39 245.59 165.08 160.62

Capital work-in-progress 152.53 123.86 25.58 82.18 29.55

Investments 18.01 2.92 298.49 253.42 258.21

Net current assets

Current assets, loans &

advances 576.62 581.89 246.03 189.55 184.80

Less : current liabilities &

provisions 556.85 453.96 400.79 301.81 218.50

Total net current assets 19.77 127.93 -154.77 -112.26 -33.70

Miscellaneous expenses

not written - - - 13.68 27.35

Total 542.96 506.11 414.90 402.10 442.03

Financial Statement Of Cadbury

Dec ' 12 Dec ' 11 Dec ' 10 Dec ' 09 Dec ' 13

Sources of funds

Owner's fund

Equity share capital 96.42 96.42 96.42 96.42 96.42

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 2,272.33 1,701.99 1,177.54 759.00 484.85

Loan funds

Secured loans 0.01 0.24 0.84 - -

Unsecured loans 1,189.48 1,049.95 970.03 - -

Total 3,558.24 2,848.60 2,244.82 855.41 581.27

Uses of funds

Fixed assets

Gross block 4,844.28 4,368.68 2,552.21 1,854.70 1,640.79

Less : revaluation

reserve - - - - -

Less : accumulated

depreciation 1,474.97 1,164.41 976.46 841.96 744.59

Net block 3,369.31 3,204.27 1,575.75 1,012.74 896.20

Capital work-in-progress 294.71 344.08 1,418.64 348.91 79.63

Investments 851.08 364.86 134.37 150.68 203.26

Net current assets

Current assets, loans &

advances 1,799.17 1,250.71 1,333.03 1,094.70 903.36

Less : current liabilities &

provisions 2,756.03 2,315.32 2,216.96 1,751.61 1,501.18

Total net current assets -956.86 -1,064.61 -883.93 -656.91 -597.82

Miscellaneous expenses

not written - - - - -

Total 3,558.24 2,848.60 2,244.82 855.41 581.27

Financial Statement Of Nestle

Financial Statement of Mars Inc.

Financial Statement of Kraft's Food

Nestle Ratio Analysis

Nestle Ratio Analysis

Nestle Ratio Analysis

Nestle Ratio Analysis

Nestle Ratio Analysis

Nestle Ratio Analysis

Krafts food Ratio Analysis

Krafts food Ratio Analysis

Krafts food Ratio Analysis

Krafts food Ratio Analysis

Krafts food Ratio Analysis

Mergers and acquisitions

1. 1948 Cadbury launches operations in

India under the name Cadbury-Fry

India

2. 1967 Launches Cadbury 5-Star

3. 1968 Launches Cadbury Gems

4. 1977 The company changes its name

to Cadbury India when it goes public

5. 1982 The company’s name is yet again

changed to Hindustan Cocoa Products

6. 1984 Launch of Cadbury Dairy Milk,

which is now the company’s flagship

product

7. 1989 Hindustan Cocoa Products once

again becomes Cadbury India

8. 2003 Cadbury India delists itself from

the Bombay Stock Exchange

9. 2010 Cadbury India becomes a part of

Kraft Foods with the latter buying

Cadbury’s worldwide operations for $19

billion

1. Cadbury merged with J. S. Fry & Sons in 1919, and Schweppes in 1969. Cadbury was a

constant constituent of the FTSE 100 from the index's 1984 inception until the company

was bought by Kraft Foods in 2010

2. Cadbury merged with drinks company Schweppes to form Cadbury Schweppes in 1969.

3. In 1978 the company acquired Peter Paul, the third largest chocolate manufacturer in the

United States for $58 million

4. In 1986, Cadbury Schweppes sold its Beverages and Foods division to a management

buyout known as Premier Brands for £97 million.

5. In March 2007, it was revealed that Cadbury Schweppes was planning to split its

business into two separate entities: one focusing on its main chocolate and confectionery

market; the other on its US drinks business

6. In 2003, Cadbury dropped the 's' from its name and renamed the brand to Cadbury. The

reason behind this change was because the company found that it was a much more

suited, rounded name than the previous "Cadbury's”

7. On 7 September 2009 Kraft Foods made a £10.2 billion (US$16.2 billion) indicative

takeover bid for Cadbury.

8. On 19 January 2010, it was announced that Cadbury and Kraft Foods had reached a deal

and that Kraft would purchase Cadbury for £8.40 per share, valuing Cadbury at £11.5bn

(US$18.9bn).