I. Product and Competitor:
a) Product Overview:
Mondelez India Foods Limited (formerly known as Cadbury) is a part of the Mondelez International group of companies, a global food company which is the world’s largest chocolatier and a spin-off from Kraft Foods. Mondelez India Foods was ranked 3rd amongst India’s most admired companies by Fortune India in 2013. Its flagship product, Cadbury Dairy Milk is considered to be the chocolate taste preference of the Indian consumer. The other popular products include Cadbury Choclairs, Cadbury Bournvita, Perk, Bournville, Celebrations, 5-Star and Gems. The popular chocolate, Toblerone is also now available in the Indian market.
b) Competitors:
Competitors in Chocolate Market: Turnover of Rs. 4500 crore; there are three major market players:-
Cadbury with 70% of the market share
Nestle having 21% of market share
Ferrero having a niche market of 6% and remaining 3% with other players.
II. Analysis of the category:
1. Aggregate market factors
a) Market size and Market share:
Size of overall chocolate market: Rs. 4500 crore
Likely size of the Chocolate market by 2021: Rs. 8000 crore
Share of premium chocolate in overall market: 27%
Expected growth rate of overall chocolate market: 20-25%
Expected growth rate of premium chocolate market: 30-35%
[1]Source: (Mar 30, 2014) Unwrapped. Business Today]
Source: (Mar 30, 2014) Unwrapped. Business Today]
b) Growth:
Following are the key drivers for the rapid growth of the Indian Chocolate industry:
Shift in consumer preference (from traditional sweets to chocolates)
Increase in health awareness - demand for sugar-free, low sugar and diet chocolates.
Rising income levels and improvement in standard of living has led to increase in demand of premium chocolates.
Rapid development in rural markets
Tradition of gifting sweets for various occasions
Growth Rate:
The chocolate industry has
References: 1. Shashidhar, Ajita. (Mar 30, 2014) Unwrapped. Business Today Retrieved from http://businesstoday.intoday.in/story/confectionary-firm-ferrero-in-india-premium-chocolate-market/1/204086.html 4. Mukherjee, Writankar and Bhushan, Ratna (Aug 1,2013) India is the fastest growing market for adult consumption of chocolates and candies. The Economic Times. 7. Joseph Wilkes, [Sep 5, 2013], Cadbury owner Mondelez $3 billion supply chain saving, Digital Supply Chain, retrieved from www.supplychaindigital.com http://www.supplychaindigital.com/procurement/2183/Cadbury-owner-Mondelez-3-billion-supply-chain-saving