Description
focuses on amul chocolates sales effectiveness with its market share, Cadburys competition, history of amul, strategy, pricing, consumer survey, reasons for success / failure, 4ps (Product, place, price, promotion)
Failure of...
AMUL CHOCOLATES
SITUATION
• Amul chocholate’s Market share decreased to 4% much less than market leader(72%) • The awareness level of AMUL CHOCOLATE is very low. • Very low visibility today
COMPETITION SCENARIO
• The chocolate market in India has only three big players, Cadbury(72%), Nestle(17%) and Amul (4%) • Relatively New brands such as Ferrero, Lindt, Mars, Sweet World, Candico and Chocolatiers are present in several malls. • The largest target segment for Cadbury is youth.
A classic 1970 - 80 Advertisement
JOURNEY – AMUL
• 1970s – Market Leader (More than 70% Market Share)
JOURNEY – AMUL
• 1970s – Market Leader (More than 70% Market Share) • 1990s:
– Shifted focus in 1990’s towards other milk products. – Competition from multinationals – Market share down to 5%
2007 – Strategy Rework
• Reworked its strategy in the chocolate category to push its chocolate product sales. • A new product portfolio (Dark Chocolate). • Placed its chocolate products at lesser price points compared with its competitors. • Market share increased to 10 %
Current Pricing
Bindaaz Wafer Chocolate Almond Bar Dark Chocolate
Milk Chocolate
Rs 5
Rs15
18g
26g
Rs15
Rs15
35g
30g
Fundoo
Fruit n Nut
Rs 15
Rs15
30g
30g
Current Market Share
Survey regarding Amul chocolates
? 88 respondents ? Conducted on the web
Some findings
• All most all the people who like eating chocolates have tasted Amul chocolate • But still, the brand is a failure
Even though they are fairly priced…
Are Amul Chocolates fairly priced? No 15%
Yes 85%
Even though they are tasty…
Do you like the taste of Amul Chocolate?
21%
No Yes
79%
Even though people still relate to it…
What comes to your mind when you think of Amul Chocolates? 7% 45% Fun 10%
Nostalgia
Nothing 38% The taste
The brand failed
Which brand is most visible to you when you go to purchase a chocolate?
80 70 60 50 40
78
30
20 10 0 Cadbury Neslte Amul
4
0
failed
Which brand is most visible to you when you go to purchase a chocolate?
Amul
Neslte
Cadbury
0 10 20 30 40 50 60 70 80
failed
Do you notice Amul chocolates kept at the counter?
50 45 40 35 30 25 20 15 10 5 0
No Yes
So, People like other brands
Which chocolate do you like most?
80 60 40 20 0
Amul
Cadbury
Nestle
Suggestions:
What do you want the most in your chocolate: Health 16% Do you think your favorite chocolate gives you the above attribute?
No 14%
Yes 86%
Taste 84%
Place
• Most important is to increase its visibility • Develop better relationship with retailers • Offer Discounts to retailers along with buybacks to convince them to store the Amul Chocolates • Amul has strong distribution, use it to improve penetration
Promotion
• Must choose a Brand ambassador- e.g.Rani Mukherjee for Munch ( targeting youth), Cadbury has roped in Genelia etc. • ADVERTISING
– Increase in frequency, At prime time. – Must increase advertising expense from the current 1% of the revenue to 5-6%
Product
• Introduce Particular line and Promotion for Festive Season. • Create Lines which people can associate with celebration, special occasions and luxury.
References
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://classicindianads.blogspot.com/2008/11/amul-chocolate.html http://www.fnbnews.com/article/detarchive.asp?articleid=16547§ionid=11 www.India-stats.com www.Agencyfaqs.com
www.indiantelevision.com
www.thehindubusinessline.com
doc_509230286.pptx
focuses on amul chocolates sales effectiveness with its market share, Cadburys competition, history of amul, strategy, pricing, consumer survey, reasons for success / failure, 4ps (Product, place, price, promotion)
Failure of...
AMUL CHOCOLATES
SITUATION
• Amul chocholate’s Market share decreased to 4% much less than market leader(72%) • The awareness level of AMUL CHOCOLATE is very low. • Very low visibility today
COMPETITION SCENARIO
• The chocolate market in India has only three big players, Cadbury(72%), Nestle(17%) and Amul (4%) • Relatively New brands such as Ferrero, Lindt, Mars, Sweet World, Candico and Chocolatiers are present in several malls. • The largest target segment for Cadbury is youth.
A classic 1970 - 80 Advertisement
JOURNEY – AMUL
• 1970s – Market Leader (More than 70% Market Share)
JOURNEY – AMUL
• 1970s – Market Leader (More than 70% Market Share) • 1990s:
– Shifted focus in 1990’s towards other milk products. – Competition from multinationals – Market share down to 5%
2007 – Strategy Rework
• Reworked its strategy in the chocolate category to push its chocolate product sales. • A new product portfolio (Dark Chocolate). • Placed its chocolate products at lesser price points compared with its competitors. • Market share increased to 10 %
Current Pricing
Bindaaz Wafer Chocolate Almond Bar Dark Chocolate
Milk Chocolate
Rs 5
Rs15
18g
26g
Rs15
Rs15
35g
30g
Fundoo
Fruit n Nut
Rs 15
Rs15
30g
30g
Current Market Share
Survey regarding Amul chocolates
? 88 respondents ? Conducted on the web
Some findings
• All most all the people who like eating chocolates have tasted Amul chocolate • But still, the brand is a failure
Even though they are fairly priced…
Are Amul Chocolates fairly priced? No 15%
Yes 85%
Even though they are tasty…
Do you like the taste of Amul Chocolate?
21%
No Yes
79%
Even though people still relate to it…
What comes to your mind when you think of Amul Chocolates? 7% 45% Fun 10%
Nostalgia
Nothing 38% The taste
The brand failed
Which brand is most visible to you when you go to purchase a chocolate?
80 70 60 50 40
78
30
20 10 0 Cadbury Neslte Amul
4
0
failed
Which brand is most visible to you when you go to purchase a chocolate?
Amul
Neslte
Cadbury
0 10 20 30 40 50 60 70 80
failed
Do you notice Amul chocolates kept at the counter?
50 45 40 35 30 25 20 15 10 5 0
No Yes
So, People like other brands
Which chocolate do you like most?
80 60 40 20 0
Amul
Cadbury
Nestle
Suggestions:
What do you want the most in your chocolate: Health 16% Do you think your favorite chocolate gives you the above attribute?
No 14%
Yes 86%
Taste 84%
Place
• Most important is to increase its visibility • Develop better relationship with retailers • Offer Discounts to retailers along with buybacks to convince them to store the Amul Chocolates • Amul has strong distribution, use it to improve penetration
Promotion
• Must choose a Brand ambassador- e.g.Rani Mukherjee for Munch ( targeting youth), Cadbury has roped in Genelia etc. • ADVERTISING
– Increase in frequency, At prime time. – Must increase advertising expense from the current 1% of the revenue to 5-6%
Product
• Introduce Particular line and Promotion for Festive Season. • Create Lines which people can associate with celebration, special occasions and luxury.
References
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://classicindianads.blogspot.com/2008/11/amul-chocolate.html http://www.fnbnews.com/article/detarchive.asp?articleid=16547§ionid=11 www.India-stats.com www.Agencyfaqs.com
www.indiantelevision.com
www.thehindubusinessline.com
doc_509230286.pptx