V/S

Presented by Group A-6

Priya Anand Anish Bibin & Hemanth

Objectives

To give a brief overview of Nestles market share in the Indian chocolate market.
To analyse the performance of Nestle in comparison to its immediate competitor Cadbury. To suggest measures which can bring Nestles market share at par with Cadbury.

An overview of Indian chocolate market

Valued at Rs 750 crores.

Chocolates still viewed as an indulgence

Cadbury 70%, Nestle 24%, Others 6% .

History
In 1830, German pharmacist Heinrich Nestl arrived in Vevey, Switzerland, to work on a substitute for breast-milk. In 1866 he launched the product onto the market, founding the company in 1867. Nestl is the world's biggest food manufacturer, with around 450 factories spread across the globe, and a portfolio that ranges from baby foods to pet care, from chocolate to mineral water. Manufacturing in India began with the start up of the Moga Factory in 1962. Nestle's first unit at Moga, Punjab

About the company

It has placed health and wellness at the forefront of its agenda, developing the widest possible range of nutritionally balanced products under the overall umbrella "Good Food, Good Life".
Advertising Age estimated global measured advertising expenditure of $2.3bn in 2008, making Nestl the world's #10 advertiser.

Some products of Nestle

Chocolate Brands
So far the biggest brand is Kit Kat.

Kit Kat is also a flagship of Nestl's international confectionery portfolio, sold in around 70 countries.

Chocolate sales 346.51 Rs. Crores

Chocolates 13-15% of total revenue Product range includes Classic, kit Kat, Munch, Bar-one, polo etc.

SWOT analysis
Strengths Parent support Strong distribution network

Weakness Raw material supply volatile prices Chocolates - comparatively small business unit Opportunities Low penetration, consumption; Launch of brands from international portfolio? Threats Foreign imports

History
Cadburys origin can be traced back to 1783 when Jacob Schweppe perfected his process for manufacturing carbonated mineral water in Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoa and chocolate. Cadbury and Schweppe merged in 1969 to form Cadbury Schweppes plc. Started business in 1948 in India. The company was incorporated as Cadbury-Fry (India) Pvt. Ltd.

About the company

Cadbury is one of the worlds leading chocolate makers. Cadbury India Limited (CIL), a part of the Cadbury Schweppes Group, is Indias leading confectionary manufacturer. CIL is estimated to have a 70 percent share of the Indian chocolate market.

Cadbury Indias first manufacturing factory was set up at Thane (Mumbai) in 1966.

Continued
Chocolate sales of Rs 514.03 Crores
Dairy milk alone accounts for 30% of market. Other power brands include Perk, 5 Star, Gems.

Targeting youth and adults through new products.

Success Mantra
Superior Shareholder Value.
Broadening consumer appeal and extending their reach to newer markets.

Sustained growth of the market share through aggressive product development.

Striving for international quality in their products and processes. Focusing on cost competitiveness and productivity in their operations and innovative utilization of their assets.

What can be done to bring a change in the overall market share???

Extensive promotion policies.
Variety in slogans to promote sales. Advertising & Distribution.

Segmentation & Product extension.

Continued
Extensive promotion policies: Nestle must constantly work to generate awareness, stimulate trial and build primary demand for new and unfamiliar products. For e.g. Nestle classic is launched in the market but is not promoted in a desired way in comparison to Dairy milk. It should be primarily concerned with maintaining the loyalty of established customers by adapting to their needs and providing good service with well-trained, wellsupported sales force.

Continued
Variety in slogans: The slogans of advertising are the tools of sales promotion...\Ads\4-[High-VA-Q]-Ghar-Chodne-Se-PahleNew-Cadbury-Shubh-Aarambh-Ad-By-RaviKhanna[www.savevid.com]_WMV V9.wmv Catchy lines associated with the brand is of key importance for its success in the market. It also generates an impression about the product in the individuals mind.

The Real Taste of Life, Khane Walo Ko Khane Ka Bahana Chahiye, Reach for the Stars, Aaj Pahli taareek hai,Shubaarambh etc are the slogans by Cadbury.

Continued
Cadbury has always concentrated on the slogan aspect of its flag ship brand Cadbury Dairy Milk.
Slogans used by Cadbury are beautifully prepared because they can compel the consumer to buy the product to some extent.

The Have a Break..Have a Kit Kat theme appeared briefly in 1939, but has been the on-going Kit Kat slogan, or strap line, since the mid 1950s.

Advertising & Distribution

Advertising plays an extremely important part in the confectionery industry . 80% of the success of a product can be accredited to its advertising.
Nestle should concentrate on innovative advertising strategies which will attract the mass consumers thereby increasing the market share. Nestl should supply as many outlets as possible - both wholesaler and retailer channels. Sales of confectionery depend heavily on its availability.

Segmentation (Demographic)
Like Cadbury , Nestle should target consumers of all age groups. Chocolates have usually been viewed as something meant only for children...\Ads\Cadbury-Dairy-Milk-ShubhAarambh-Jeans[www.savevid.com]_WMV V9.wmv The message that CIL seems to be attempting to put across is this: In every adult, there is a child - let that child express itself, give in to temptation, and satisfy his or her desire to sink teeth into a smooth, creamy, delicious chocolate. Cadburys strategy to attract consumers is somewhat unique in a sense, instead of focusing on the product, it seeks to tap into emotions normally associated with chocolates...\Ads\MilkybarCommercial-Street-Kings-of-India[www.savevid.com]_WMV V9.wmv

Product Extension
In order to increase the satisfaction of the existing customers and to enable them to try on something new Nestle should come up with product extension under its brand name which are already established in the market. Cadburys Temptation in various flavors, Dairy milk fruit and nut are sold under the established brand Cadbury Dairy milk. Nestle should concentrate on timely introduction of new products rather than sticking up with the same brand for too long.

BCG Matrix

Conclusion
As compared to its immediate rival Cadbury in the confectionery market Nestle thrives hard to be at par with respect to Branding, Marketing, Promoting objectives. After all in the end its the customers or the consumers who are solely responsible for the success of any product launched. More than concentrating on the nutritional aspects of chocolate it should explore many new ways of getting their message across to the consumers. Nestle will have to constantly revamp their strategies in order to compete with its rival.

Thank You