1. CHOCO HONEY
Marketing plan : MM-1&2
PGDM 2012-14 IMI-K
Abhishek Kumar Jha
Abhishek Pal
Anand Kumar
Anulika Singh
Nimesh Shukla
Pamela Roy
Prasenjeet Tewari

2. AGENDA
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Market Overview
PEST Analysis: Chocolate Industry
Company overview: Dabur
Product summary
Porter’s five forces
Competitors analysis
SWOT analysis
Market research & Product definition
Segmentation
Targeting
Positioning
Marketing mix
Showcasing : Product

3. MARKET OVERVIEW
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The chocolate market in India is pegged at ₹ 2,000 crore and is growing at a rate of 18-20 per
cent per annum.
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Increasing consumer demand has led to more and more players entering the market.
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The industry is extremely fragmented in terms of range of products.
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The two giants Cadbury with 70 per cent and Nestle around 20-25 per cent have been
instrumental in building up the chocolate market in India.
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The chocolate is worth ₹ 3,200 crore in India of which Cadbury Kraft Foods has a 70% share,
20% is held by Nestle and the others operate in the remaining 10%, which forms around ₹ 310320 crore.
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Some of the foreign players are Mars, Guylian, Lindt, Hershey’s and other Swiss chocolates.

4. MARKET OVERVIEW
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The size of the market for chocolates in India was estimated at 38,000 tonnes in 2012.
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Bars of moulded chocolates like amul, milk chocolate, dairy milk, truffle, nestle premium, and
nestle milky bar comprise the largest segment, accounting for 37% of the total market in terms
of volume.
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The chocolate market in India has a production volume of 39,400tonnes.
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The chocolate segment is characterized by high volumes, huge expenses on advertising, low
margins, and price sensitivity.
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The chocolate market today is primarily dominated by Cadbury and Nestle, together
accounting for 90% of the market.

5. ENVIRONMENTAL ANALYSIS
PEST/OT
P
E
O
Stable democracy
Favorable government policies.
T
Coalition govt.
Fast Emerging economy with a population of over 1.25 billion.
Recession Proof product market, Early product life life cycle.
.
FDI – 100%
₹25000 crore of Market, growing@ 20%.
T
L
Obesity
Other health disorders
Availability of skilled man power.
National Dairy Research Institute.
Perishable product-storage &
transportation.
Heavy dependency on import
for cocoa.
FSS Act, 2005
S
Rising Consumer Disposable Income among high and middle
income growth
Change in consumer preferences from sweet to chocolate.
Change in Lifestyle trend and food habits
High compliance

6. COMPANY OVERVIEW : DABUR
One of the largest FMCG Company of India
Consolidated Turnover of ₹ 5283 Crore (about $1 billion) FY 2012.
Differentiated Product
Strong herbal and natural profile
More than 100 years of exp. in Ayurveda
Wide distribution network
Covering over 3.4 million retail outlets all over India
High penetration in urban and rural area
Brand strength
Strong brand in diverse categories
Mother brand DABUR trusted for natural and herbal health care
₹12 billion brand value
Strategic Positioning
Honey as food product, leading to market leadership (over 75%) in
branded honey market

7. Chocolate Industry : India
Rs 2000 Cr
2012
2030
2050

8. PRODUCT SUMMARY
Product Name: Choco Honey
Product: Close to new line of business
Product Tagline: Swad Se Sehat Ki ore
Strategic positioning of Honey as food product, leading to
market leadership (over 75%) in branded honey market of
Dabur.

9. Porter’s five forces
Foreign Players&
Domestic Big Players
Threat of new
Entrant
Cocoa
Suppliers
Bargaining
power of
suppliers
Cadbury
Nestle
Threat of
substitutes
Sweet shop,
cookies, cakes,
Gifts
Bargaining
power of Buyers
Consumers

10. Competitor Analysis: Cadbury
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Cadbury is a confectionary company owned by Kraft Foods and is the industry's secondlargest globally after Mars, Incorporated.
With its headquarters in Uxbridge, London, England, the company operates in more than 50
countries worldwide.
Cadbury was incorporated in India on 19 July 1948.
Cadbury Kraft Foods has been a market leader in the chocolate category since the last 64
years in India.
It is the market leader in the Indian chocolate confectionery business with a market share of
over 70%.

11. Competitor Analysis: Nestle
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Nestlé’s first sales agents in India began work in Chennai and Kolkata in 1912.
Today, the company directly employs 6,000 people in India and more than half a million
indirectly.
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Its products are sold in more than 3.5 million outlets across the country
.

12. COMPETITOR ANALYSIS: PRICING
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Price is same all over India.
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Competitive pricing.
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Due to price hike in raw material and labour cost company had not increased the cost
of product but reduced the weight of product.
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Eg. ₹5 pack was of 13gm but now it is 10.5gm

13. SWOT ANALYSIS (DABUR)
Type of Factor
Location of
Factor
FAVOURABLE
UNFAVOURABLE
Strength
EXTERNAL
Brand Name
Strong distribution system
Deep penetration
Requires suppliers for cocoa and milk
Inadequate storage facilities
Opportunity
INTERNAL
Weakness
Threat
Open to try new brand
Only few honey flavors exist
Increasing demand
Import Policies
Rising raw material cost
Industries stretching their operations
Duopolistic market

14. Market Research : Understanding the consumer
Buyer motives

15. Market Research : Understanding the consumer
1. Why do you purchase chocolates ?

16. Market Research : Understanding the consumer
2. Which is your most preferred brand for chocolates ?

17. Market Research : Understanding the consumer
3. Why do you prefer this brand (chosen by you) ?

18. Market Research : Understanding the consumer
Buyer Habits

19. Market Research : Understanding the consumer
4. How often do you buy chocolates ?

20. Market Research : Understanding the consumer
Psychological process underlying buying decisions

21. Market Research : Understanding the consumer
5. What do you focus while buying a chocolate ?

22. Market Research : Understanding the consumer
6. Do you perceive chocolate as a health product ?

23. Market Research : Understanding the consumer
Participants and roles

24. Market Research : Understanding the consumer
7. You buy chocolates for :

25. MARKET RESEARCH
1. Which flavour of chocolate would you prefer ?

26. Market Research : Understanding the consumer
2. How do you perceive honey ?

27. Market Research : Understanding the consumer
4. In which form (shape and size) would you prefer chocolate ?

28. Market Research : Understanding the consumer
6. Are you ready to try out a new brand of chocolate ?

29. DEFINING PRODUCT
Name : CHOCO HONEY
Attributes :
Sweet in taste
Ingredients: Honey, Tulsi, Chocolate.
Price range : ₹5-50
Flavours : Just honey (5-20 category),Rich Almond and Nut(20-50 category).
Value : Taste and health

30. SEGMENTATION
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Demographic : Consumers within the age group of 5-40
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Geographic : In and around Kolkata
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Based on our extensive Market research one third of our consumer preferred chocolate
in the price range of ₹20-50, while more than10% preferred for price segment more than
₹ 100.
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That indicates people from middle class and educated middle class are significant part of
our consumer base.

31. TARGETING
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Based upon our Online Market Research we shall Target following segment of
population:
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For Kolkata region and surrounding urban
sector
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People from SEC A1, A2, B1, B2
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For Rural region:People from R1 & R2 shall be targeted.
Process for targeting:
Sweet loving consumers
Consumers who consider sweets as gifts

32. POSITIONING
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Combines the taste of chocolate with the delicious taste of honey.
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It will compete against products like Dairy Milk by Cadbury and Milky-bar by Nestle.
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Differentiator : The combination of chocolate with honey.
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Focus on health.

33. MARKETING MIX
Product
• Honey and Tulsi combo based
Chocolate.
10.5gm, 22gm, 95gm
Price
• ₹ 5-20 (Bar)
• ₹ 20-50 (Cartoon shaped)
Place
• Schools, college canteens, offices.
• Mom & Pop stores.
• Dabur’s retail network and dealers.
Promotion
•Television commercials
•Celebrity endorsement
•Posters and billboards
•Print media
•E-marketing

34. Market Research : Understanding the consumer
3. How much are you ready to spend on a chocolate ?

35. SHOWCASING : PRODUCT
Category (₹5 - ₹20)
Chocolate coating
Honey +Tulsi

36. SHOWCASING : PRODUCT
Category (₹20 - ₹50)
Cashew nut
Almond

37. So far we have done…… (MM-I)
WHAT WE DID IN MM-1?
MARKET ANALYSIS
SWOT ANALYSIS
COMPETITORS
STRATEGIES
TARGET MARKET

38. MM-II FOCUS
• The firms obtain competitive advantage and synergy
through integrated programs between the marketing
mix variables (product, price, communication, and
marketing channels) and the consumer behaviour
aspects.
• Marketing Objective is to create and deliver value,
this time we are here to deliver Choco Honey to our
target customer to capture value in return.

39. INBOUND LOGISTICS
Warehouse
Manufacturing
Plant
Dabur ltd.

40. OUTBOUND LOGISTICS
Manufacturing
Plant
Retail Store
Warehouse
Hyper market

41. Marketing Strategy and Distribution
Channel Design
CHOCO-HONEY’S DISTRIBUTION CHANNEL STRATEGY
POSITIONING
TARGET
GOALS
COMPETITIVE
ADVANTAGE
SYNERGY

42. DISTRIBUTION OBJECTIVE
• A conduit between manufacturer and customer.
• Not possible to reach out to potential target
customer in a cost effective way.
• Choco-honey, being a convenience good, requires
extensive distribution.
• To deliver value to the customers through the best
possible channel.
• Cost effective – Distribution sales force

43. STRATEGIC DISTRIBUTION DECISIONS
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Multichannel distribution system.
Push strategy.
Nearby location(customers).
Intensive distribution.

44. CHANNEL INTERMEDIARIES
PRODUCER
Supermarkets
Hypermarkets
Wholesaler
Highway
Retailing
Departmental
store
Convenience
store

45. CHANNEL MANAGEMENT
• Channel Management
• Channel Power
• Relying on core competency of strong
distribution channel of Our company.

46. PRICING STRATEGY
Nature of Chocolate Industry :
 High volumes
 Huge expenses on advertising
 Low margins
 Price sensitivity
We will prefer Market-penetration pricing
Reaching out to maximum number of consumers and acquiring market share
is of prime importance at this stage of our product life-cycle.

47. MANUFACTURING COSTS AND OVERHEADS
Budget Allocated for this project : ₹20 crores
1.
Cost of raw materials (cocoa beans, milk, sugar, honey, tulsi, cocoa
powder, nuts) = ₹2 crore
2.
Cost of transportation of raw materials = ₹20 lakh
(@ ₹1505.20 per tonne freight charge from Kerala to Asansol, carriage
charges from manufacturing plant at Asansol to warehouse in Kolkata,
transportation of milk from Jharkhand to Asansol, carriage charges to
retailers, distributors)
3.
Cost of setting up factory, warehouse and equipment = ₹5 crores

48. SELLING AND DISTRIBUTION COSTS
Budget Allocated for this project : ₹20 crores
Total marketing budget out of this (@25% of the project budget)
= ₹5 crores
 Start-up marketing activities : 60% of allocated marketing budget
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Brand Building Cost (@20% of allocated budget) = ₹1 crore
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Promotional Activities (@40% of allocated budget) = ₹2 crores
 Run-rate marketing activities : 40% of allocated marketing budget
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Margins to downstream distribution channel network (@10% of allocated
budget) = ₹50 lakhs
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Price adjustment strategies – discount and allowance pricing (@5% of
allocated budget) = ₹25 lakhs
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Commissions, Bonuses, Incentives to sales agents (@25% of allocated
budget) = ₹1.25 crores

49. BREAK EVEN ANALYSIS AND TARGET PROFIT
1 crore
20 cr
5 cr
1 cr

50. VALUE BASED PRICING BASED ON SURVEY
Based upon our Online
Market Research we
find that consumers are
ready to pay in the range
of ₹5 - ₹50.

51. VALUE BASED PRICING (₹5-₹20 RANGE)
Name : CHOCO HONEY
Attributes :
Sweet in taste
Ingredients: Honey, Tulsi, Chocolate.
Price range : ₹5-₹20
Flavours : Just honey
Value : Taste and health

52. VALUE BASED PRICING (₹21-₹50 RANGE)
Name : CHOCO HONEY
Attributes :
Sweet in taste
Ingredients: Honey, Tulsi, Chocolate.
Price range : ₹21-₹50
Flavours : Rich Almond and Nut
Value : Taste and health

53. PROMOTION
Five promotion mix tools for communicating customer value :
• Advertising
• Personal selling
• Sales promotion
• Public relations
• Direct marketing

54. PROMOTION
Outline the communications process and the steps in
developing effective marketing communications
• Identify the target audience
• Define the communication objectives
• Find highly credible sources to deliver messages
• Collect feedback.

55. Ways to promote
Promoting in small packs or candy style.
• Children’s park
• Substitute gifts for petty cash
• Complementary gift
• Separate display designs
• Encouraging customers
• Doctors’ desk
• Blood donation camps

56. ADVERTISING
• Basing objectives on Target Market, positioning and
marketing mix
• Communicating Customer Value
• Informative Advertising
• Persuasive advertising as competition increases

57. INFORMATIVE ADVERTISING
• Will communicate customer value
• Build Choco honey’s image under the brand umbrella
of Dabur.
• Explain how the product works
• Suggest new uses n attributes
• Inform the market of price charges
• Correct false impressions if at all

58. AD-WORDS
• Setting advertising objectives
• Setting the ad budget
• Developing an advertising strategyAdvertising messages
Advertising Media

59. PUBLIC RELATIONS
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Press relations or press agency
Product publicity via publicizing
Managing Public affairs actively
Lobbying with legislators and government officials to
influence decisions
• Investor relations
• Development of PR with donors and NGOs

60. CHOCO HONEY
THANK YOU

61. Choco honey
Swad se sehat ki ore

62. THANK YOU