IMC strategy of amul
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Amul's market share for chocolates has decreased significantly to 5% compared to the market leader Cadbury which has 79% share. Amul aims to formulate an integrated marketing communications strategy to increase awareness and market share of its chocolates. Based on research, Amul identifies key issues such as low awareness, preference for branded chocolates, and potential advertising mediums. Amul will conduct a survey to understand consumer behavior and gauge awareness of Amul chocolates versus competitors. The recommendations include modifying product range, pricing, promotions, and distribution to target all age groups and increase availability across urban and rural markets.
IMC strategy of amul
- 1. IMC STRATEGY OF AMUL CHOCOLATES IMC STRATEGY OF AMUL CHOCHOLATES
- 2. RESEARCH PROBLEM • Amul chocholate’s Market share decreased to 5% much less than market leader(79%) • The awareness level of AMUL CHOCOLATE is very low. • To find the performance of AMUL CHOCOLATE vis-à-vis other Brands. • To know the consumer psyche and their behaviour towards AMUL CHOCOLATE.
- 3. RESEARCH OBJECTIVES • To gauge the awareness of people towards Amul chocolates. • To find out in which segment chocolates are mostly liked/preferred. • To understand which advertisement medium must AMUL use. • To know the perception of Amul chocolates in comparison to other competitive brands. • To formulate an IMC strategy for Amul Chocolate.
- 4. Information requirement • Information about all the competitors present in the chocolate segment (Reputed & well established brands as well as Local brands e.g. Cadburies,Nestle etc.) • Information about the comparative packs and prices of all the competitors existing in the market. • To trace the market and segment ,which mainly deals with people of various age groups. • Various types of chocolates available in the market • Information if the television advertisement timing is effective or not.
- 5. RESEARCH INSTRUMENTS • Primary Research – Questionnaire • Secondary Research – Internet – E-Journals – Newspaper Articles – Research papers
- 6. SAMPLING 1. Sampling Technique : Non probability sampling 2. Sample Unit : People who buy chocolates available in retail outlets, superstores, etc ( Convenience sampling) 3. Sample size : 100 respondents (Age ranging between 8 yrs to 65 yrs) 4. Method : Questionnaire (including email). 5. Data analysis method : Graphical method. 6. Area of survey : All over India( email questionnaire).
- 7. Company Profile • First milk union KAIRA DISTRICT CO- OPERATIVE MILK PRODUCERS’ UNION Started in 1945. • Selected Brand name AMUL in 1955. • Amul means “Priceless” in sanskrit. • Entered in chocholates segment in 1970 • Sales Turnover Rs 52554 million 2007-08.
- 8. AMUL PHILOSOPHY • Matching demand and supply. • Vast & strong supply chain network. • Developing demand. • Introducing higher value products. • Umbrella Branding Strategy. • e-initiative strategy.
- 9. AMUL PRODUCTS • Amul Butter • Amul Milk Powder • Amul Ghee • Amulspray • Amul Cheese • Amul Chocolates • Amul Shrikhand • Amul Ice cream • Nutramul • Amul Milk
- 11. AMUL CHOCOLATES
- 12. SALES TURNOVER
- 13. MARKET SHARE
- 14. CHOCHOLATE MARKET IN INDIA • Chocolate market is estimated to be around 1500 crores (ACNielson) growing at 18-20% per annum • Cadbury is the market leader with 79% market share • The per capita consumption of chocolate in India is 300 gram compared with 1.9 kilograms in developed markets such as the United Kingdom • Over 70 per cent of the consumption takes place in the urban markets. • The chocolate wafer market (Ulta Perk etc) is around 35 % of the total chocolate market and has been growing at around 13% annually. • As per Euromonitor study, Indian candy market is currently valued at around USD 664 million, with about 70%, or USD 461 million, in sugar confectionery and the remaining 30%, or USD 203 million, in chocolate confectionery. • Entire Celebrations range marketshare is 6.5%
- 15. COMPETITION SCENARIO • The chocolate market in India has only three big players, Cadbury(79%), Nestle(14%) and Amul (5%) • New brands such as Sweet World, Candico and Chocolatiers are present in several malls. • The largest target segment for Cadbury is youth. • Delhi-based Chocolatiers, started with a small shop in south Delhi’s Chittaranjan Park and has now ventured into malls and multiplexes in NCR, Mumbai and Bangalore, with focus on high-end or designer chocolates, a niche market of their own. • Candico India is aiming for 400 locations across malls and multiplexes in the country by 2010.
- 16. CONSUMER TREND • Mithai- is getting substituted by chocolates - Convenient packaging and better shelf life. • Sudden spurt in advertisement between July & Sep in festival seasons. • The range and variety of chocolates available in malls seems to be growing day by day, which leads to lot of impulse sales for chocolate companies. • Chocolates which used to be unaffordable, is now considered mid-priced. • Designer chocolates have become status symbols. • Consumers can choose from wide range of chocolates. so many SKUs with almonds, raisins and all sort of nuts. Latest 5 star crunchy and Ulta Perk. • In past, consumers had negligible inclination for dark chocolates. But now we have seen a change in the Indian palate, which is increasing the base of this sub-segment
- 17. ADVERTISEMENT TRENDS • Chocolate advertising rose by 30 per cent. • Maximum chocolate advertising was during Raksha Bandhan. • As expected chocolate advertising skewed towards kids channels and regional GEC took the second position • Cadbury India Ltd rules chocolate advertising on television • Regional GEC took the second place with a 21% share ad volumes of chocolates, followed by Hindi movie with 13% share. • Cadbury India Ltd was way ahead of its peers with 66 per cent share followed by Nestle India Ltd and Parle Products Pvt Ltd • During January-November 2008 the number of new chocolate brands advertised decreased to seven from 12 during 2007 • Nestle Munch Pop Chocolate led the chart of new chocolate brands advertised on television during January-November 2008
- 18. JOURNEY – AMUL • 1970s – Market Leader • A classic 1970 - 80 Advertisement
- 19. AMUL AD ON INDRAJAL(1970 80)
- 20. 1990s • Shifted focus in 1990’s towards other milk products. • Competition from multinationals • Market share down to 2-3%
- 21. 1990s AMUL ADVERTISEMENT Introduced newer varities of chocolates, like ‘Bindas’, ‘Nuts About You’ and others, targeting teenagers
- 22. 2003.... • Increase in sales due to cadbury worm controversy.(20 % increase in sales) • To boost sales, Amul launched three new chocolates in under the brands Fundoo, Bindaas and Almond Bar. • While the first two have been priced at Rs 10 for a 30 gm stick, Almond Bar carries a price tag of Rs 10 for a 35 gm chocolate. • As a result, AMUL's festival season pack "Rejoice" came with six chocolates, up from three during the festive season before
- 23. 2004-Repositioning • Launch of ‘Chocozoo’ - chocolates in shapes of motorcycles, aeroplanes, animals and comic charaters . • Targeted Kids. • Introduced economic variants of chocolates priced at Re 1, Rs 3 and Rs 5.’’ • A tub of ‘Chocozoo’ chocolates were priced at Rs 138 for 46 units of chocolates, but retailers can sell the chocolates loose, at Rs 3 each. This, was done to attract kids. • Trendy Look – Removed the cute little butter girl and cheese boy from its wrappers. New wrappers, designed by a US firm, trendy and colourful. • A new tag line: Amul Chocolate — For Someone You Love. • Not merely gifts, but make a more emotional pitch with emphasis on Amul Chocolates for love on all occasions.
- 25. 2007 – Strategy Rework • Reworked its strategy in the chocolate category to push its chocolate product sales. • A new product portfolio. • Strategy was to identify the market gaps and try and fill them as done in the past with their sugar free and Choco Zoo, both of which have been appreciated by the consumers. • Placed its chocolate products at lesser price points compared with its competitors. • Concentrating on the niche segment such as health chocholates • Launched Trix, a wafer biscuit coated with rich milk chocolate.Cadbury's Perk and Munch from Nestle are other two major players in the wafer chocolate segment. Priced at Rs 5, available in strawberry and chocolate flavours. • Introduced father son advertisement, Rose day advertisement. • Corporate Image advertisement. • Market share increased to 10 %
- 26. SURVEY ANALYSIS 1) Do you like chocholates? • Yes 97 % • No 3 % 2) Who in your family uses chocholates? Kids 33% Teenagers 21% Youths 44% Old 2% Kids Teenagers Youths Old
- 27. 3) What kind of chocolates do you prefer? • Branded • Non Branded Branded 95% Unbranded 5% Branded Unbranded
- 28. 4)What type of chocolates do you prefer? • Wafers • Bars • Small chocolates • Other Wafers 12% Bars 40% Small chocholaes 45% Other 3% Wafers Bars Small chocholaes Other c
- 29. 5) Which type of television channel do you prefer watching the most? • News • Cartoon • Zee/Star (Entertainment) • Other news 12% cartoon 13% zee/star 38% other 37% news cartoon zee/star other
- 30. 6) Which time slot do you prefer for watching television? • Morning • Afternoon • 5-8 pm • 8-11 pm • Late Night Morning 12% Afternoon 18% 5-8 pm 10% 8-11 pm 38% Late Night 22% Morning Afternoon 5-8 pm 8-11 pm Late Night
- 31. 7) Media where the last time you saw a chocolate advertisement was • Television • Hoardings • Radio • Newspaper • Magazine • Other Television 62% Hoardings 20% Radio 5% Others 1% Magazine 3% Newspaper 9% Television Hoardings Radio Newspaper Magazine Others
- 32. 8) According to you which of the following makes a television advertisement more memorable? • Jingles • Brand Ambassador • Emotion • Humour • Product display • Others Jingles 35% B Ambasador 40% Emotion 5% Humour 8% P Display 10% Others 2% Jingles B Ambasador Emotion Humour P Display Others
- 33. 9) Have you heard of Amul Chocolates? • Yes • No Yes 88% No 12% Yes No
- 34. 10) Can you recall any of the Amul chocolates Advertisement/ Hoarding? • Yes • No Yes 20% No 80% Yes No
- 35. 11) Which chocolates do you like the most? • Amul • Nestle • Cabury • Others Amul 10% Nestle 26% Cadbury 55% Others 9%
- 36. 12) When do you usually purchase a chocolate? • Festivals • Gifting • Snacks • Just like that Festivals 20% Gifting 21% Snacks 25% Just like that 34%
- 37. AMUL SWOT ANALYSIS • Strengths- – Parent support – Strong distribution network • Weakness – Raw material supply – volatile prices – Chocolates - comparatively small business unit • Opportunities – Low penetration, consumption; – Scope of launching new variants and extensions. • Threats – Foreign multinationals
- 38. CADBURY • Chocolate sales of Rs 514.03 Crore • Market leader by far – 79% share • Dairy milk alone accounts for 30% of market • Targeting youth and adults through new products • Full chocolate range, complete category coverage • Distinctive taste, captured sensitive price points • Eclairs Rs 1, Chocky Rs. 2, 5 Star Rs. 5 and Rs. 10, • Dairy Milk Rs. 5,10,15, 25 and 100 • Fruit and Nut Rs 20 • Dry Fruit Range Rs 25- 50 • Celebration Rs 50 and 100 • Rich Chocolates Rs 100, 250, 450.
- 39. Nestle • Chocolate sales – 346.51 Rs. Crore • 14% market share • Chocolates 13-15% of total revenue • Product range includes Classic, kit Kat, Munch, Choco stik, Bar one
- 40. Perceptual Map
- 41. RECOMMENDATIONS
- 42. Modified Positioning • Something to have just like that. • Gifting
- 43. TARGET AUDIENCE
- 44. Everyone • Youths, kids, Teenagers, Old. • Different products for different age group
- 46. Product Introduction of new range of chocolates to suit different targeted segments • Variety • Design – Plain bars, filled, chocolate covered wafers, • Sizes and Packages – wide range to suit key price points and occasions
- 47. Price • Pricing – In line with Cadbury’s offerings • Incentive schemes – eg. Nestle’s Maha munch give more value for the same price • Priced at key price points like Rs.5
- 48. Promotion • Must choose a Brand ambassador- e.g.Rani Mukherjee for munch ( targeting youth), Cadbury is planning to rope in Genelia D’Souza of JTYJN fame. • ADVERTISING – Increase in frequency, At prime time. – Must increase advertising expense from the current 1% of the revenue to 5-6% as done by other competitors
- 49. Place • Make use of its strong distribution structure. • Urban as well as rural. • New Regional Sales Offices to increase width and penetration and focus in rural areas.
- 50. RECOMMENDATIONS • Must introduce Festival Gift boxes like cadbury Celebration. • Must offer low-priced packs for the masses and launch new products to target different age groups. • Must focus on the availability and affordability of its products. • Should increase R&D spending to improve the quality & taste. • Must introduce at price points such as Rs 1, Rs 2, Rs 5 (13gms), Rs 10 (26gms), Rs 15 (43gms), Rs 50 and even at Rs 100 • Visibility at retails points. To increase the visibility of its products, target areas near bus stops, colleges, schools, cafes and places of entertainment like theaters and amusement parks.
- 51. RECOMMENDATIONS • Must enter into marketing alliances with various portals to offer products (on those portals that were developed for festive occasions and celebrations such as Valentines Day and Friendship Day. • Rejuvenate and strengthen the existing brands • Extend its reach to semi-urban and rural markets. • Sell its products through 'non-traditional' outlets like music stores (such as MusicWorld), malls, renowned bookstores and popular apparel outlets (such as Pantaloons and Wills Sport boutiques). • To put chocolate carts (similar to traditional bicycle ice-cream carts) in malls and near college campuses to increase its reach. • Increase frequency of advertisement. • Company should introduce sales promotion schemes like free weight, pranky, tattoo, contest, free gifts etc. • Advertisement can be done with the help of animations that attracts children and teenagers because chocolates are consumed largely in this segment.
- 52. AMUL PARLOURS • Amul has recently entered into direct retailing through "Amul Utterly Delicious" parlours created in major cities Ahmedabad, Bangalore, Baroda, Delhi, Mumbai, Hyderabad and Surat. • Amul has plans to create a large chain of such outlets to be managed by franchisees throughout the country • Amul should give local advertisements apart from the advertisements given at the national level. Local advertisement must mention the exclusive Amul shops of the city.
- 53. CHOCOLATE BOUTIQUES AND SHELVES • Amul must come up with its own chocolate boutiques. • Form its own shelves in retail shops and take ownership of maintaining them.
- 54. DIRECT SCHOOL PROGRAM As a part of the customer contact programme ,Amul must do direct school program for Amul chocolates. They can sampling their latest offering - among kids.
- 55. AMUL CYBERSTORE Amul does e-selling of all its products including chocolates but very few people know about it. AMUL must make use of the hoardings and print ads to communicate this.
- 56. TV SHOWS • Chhote Ustad •Amul Voice of India •Amul Surbhi • Chocholate advertisement in between the shows •Free Chocholate Gift Hamper to winners
- 57. CONTESTS Amul can start some contest for chocolates as it is doing for some of its other products.e.g. • Amul Chef of the Year, 2009 contest • Amul Maharani Contest, 2008-09 • Amul Food Festival Contest • Winners of Slogan likho Disneyland dekho contest • Winners of "Amulya Fly to Bangkok Contest"
Editor's Notes
- #17: Mithai- the traditional Indian sweats is getting substituted by chocolates Instead of buying sweets on Raksha Bandhan, sisters prefer offering chocolates to their brothers. This is the reason for sudden spurt in advertisement between July & Sep by most of the companies The range and variety of chocolates available in malls seems to be growing day by day, which leads to lot of impulse sales for chocolate companies Chocolates which use to be unaffordable, is now considered mid-priced. Convenience over Mithai in terms of packaging and shelf life in making both middle class and rich Indians opt for chocolates Designer chocolates have become status symbols. Cadbury initial communication for Celebrations was concentrated on occasions like Diwali and Rakshabandhan. Over the last seven to eight years, the brand emerged as a good gift proposition for occasions and enabled people to come closer. Consumers can choose from wide range of chocolates, which initially was limited to Milk chocolates like DairyMilk and MilkyBar. In past few years we have seen so many SKUs with almonds, raisins and all sort of nuts. And how can we forget latest 5 star crunchy and Ulta Perk, which has opened new windows for consumers In past, consumers had negligible inclination for dark chocolates. But now we have seen a change in the Indian palate, which is increasing the base of this sub-segment