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.

JOURNEY – AMUL • 1970s – Market Leader (More than 70% Market

Share)

A classic 1970 - 80 Advertisement

• 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%

JOURNEY – AMUL

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

Fundoo

Fruit n Nut

Rs 5

Rs15

Rs15

Rs15

Rs 15

Rs15

18g

26g

35g

30g

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…

No15%

Yes85%

Are Amul Chocolates fairly priced?

Even though they are tasty…

21%

79%

Do you like the taste of Amul Chocolate?

No

Yes

Even though people still relate to it…

7%10%

38%

45%

What comes to your mind when you think of Amul Chocolates?

Fun

Nostalgia

Nothing

The taste

The brand

Cadbury Neslte Amul0

10

20

30

40

50

60

70

80

78

4 0

Which brand is most visible to you when you go to purchase a chocolate?

failed

Cadbury

Neslte

Amul

0 10 20 30 40 50 60 70 80

Which brand is most visible to you when you go to purchase a chocolate?

failed

NoYes

05

101520253035404550

Do you notice Amul chocolates kept at the counter?

failed

So, People like other brands

Amul Cadbury Nestle0

1020304050607080

Which chocolate do you like most?

Suggestions:

Health

16%

Taste84%

What do you want the most in your chocolate:

No14%

Yes86%

Do you think your favorite chocolate gives you the above attribute?

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&sectionid=11

www.India-stats.com

www.Agencyfaqs.com

www.indiantelevision.com

www.thehindubusinessline.com

Thank You