The chocolate industry in India is a market which is as yet untapped and has room for exponential growth. There are very few major players in the Indian market which creates excellent opportunity for Forbidden Delights to launch its product and bring an entirely new culture and lifestyle to the people of India. Conventionally, the Indian people prefer traditional sweets on special occasions rather than chocolates. Also, chocolates have been considered as a luxury for the rich and elite. Forbidden Delight aims at bringing this luxury to the common man and at helping him indulge in and explore the previously forbidden delights of chocolate.
This vision will be put into practice using the marketing plan described here. COMPETITORS In order to judge the competitive scenario in any industry, Porter’s model consisting of five forces which include direct rivalry, customer bargaining power, supplier bargaining power, substitute products, and threat to new entrants. The direct competition faced by Forbidden Delight Chocolates will be from International chocolate producers like Cadbury and Nestle with brands like Kit Kat and Lions. There are also some local players which include the ‘Gujrat Co-operative Milk Marketing Federation’ (GCMMF).
However, these local brands pose a minimal threat as they hold
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Substitutes for chocolates include the local traditional sweets which are very popular during festivals and special occasions like weddings. Also, because the Indian market for chocolate is not very mature, people also indulge in jellies and wafers instead of chocolates. However, due to the increase in the overall standards of living and exposure to media, many people are looking to chocolates as the ‘stylish’ substitute to traditional sweets. Chocolate was initially considered a privilege which only the rich could afford.
Forbidden Delights is however aiming to break these traditional boundaries and make its brand accessible to middle income Indians as well (Porter, 2008). Threats to new entrants include the costs of setting up manufacturing plants, hefty marketing budgets, and distribution costs to major retail stores. Even though the per capita consumption of chocolate in India is not very high, there are certain major players in the chocolate industry. Based on these factors, the major competition Forbidden Delights faces in India is by Cadbury and Nestle.
Competitor No. 1: Cadbury Internationally, Cadbury has established for itself a premium place in the hearts of people. It started in Birmingham, England as an addition of chocolate stuff to a family run grocery store. It later developed into a separate business for chocolate products. Cadbury has become known over the years for their exquisite dairy milk as well as variants like roasted almond, fruit and nuts, and hazelnut among many others, they are also famous for their CSR activities including adult education and environment friendly products.
In India, Cadbury started out in 1948 as a subsidiary of Cadbury Schweppes Overseas Limited. This was later renamed as Hindustan Cocoa Products and was brought back to the name Cadbury in 1989. Over the years, Cadbury chocolates have created and maintained a special place in the hearts of the Indian people. Traditionally it has been one of the major players in the Indian confectionary industry grabbing a sizable market share. In India, the most popular products include Dairy Milk, Perk and Bournvita. It has established a sound distribution network all across the country to cater to its customers.
STRATEGY Cadbury aims at increasing its stockholder value over time. It seeks to achieve this by growing its market share by catering to the mass market through effective pricing mechanisms and through the introduction of variants to suit different tastes and needs. They incorporate quality and value management practices with leadership skills to enhance the culture if the organization which enables them to be adaptive to changing market tastes and trends (Porter, 2008). Segmentation The brand has an international presence.
Demographically the segments include people from different age groups, kids, young adults and older people. But the focus of the segmentations is on demographics because chocolate is a kind of product whose target market is huge and you need to differentiate your product on the demographic basis. Targeting Recently, the brand has tried to increase its appeal for the younger segment of the market in order to change its image as a brand for older people. The various variants and flavours are aimed at catering to different segments e. g. Perk is supposed to add that extra zing to young people’s lives.
In addition to that, Cadbury is trying to target the in direct competition that is sweets on celebrations, with its world over famous campaign “Pappu Pass Hogya”. It is actually trying to target this huge segment too. Because India is a country where there are a lot of celebrations and festivals, so giving chocolates as presents rather than sweets is what Cadbury is trying to target (Porter, 2008). Communication Strategies They have launched various ad campaigns, promotional and personal selling activities as well as certain PR campaigns. Consumer feedback is also used in order to improve product quality.
They introduce gift packs as promotional selling campaigns during various celebrative seasons and they have introduced various desserts ‘for delicious times following dinner’. There are also POS buntings and decorations to increase visibility for the product. Positioning They have positioned the brand as a lively, colourful brand which revitalizes and energizes the workplace and brings life to parties and meetings. It has a persona of very lively, family oriented, including everybody in celebrations, light and happy person, both male and female. COMPETITOR NO 2: NESTLE
Kit Kat has over the years gained extraordinary popularity among people all over the world. Initially launched in 1935 by Rowntree in Britain, and soon became a favourite all over the world. It was bought by Nestle in 1988 and is now sold in around 70 countries all over the world. Kit Kat has also become an established brand in India since 1995 and holds a market share second to Cadbury (The Times 100, 2008). In India, Kit Kat aims to increase its market share through the development and effective marketing of different flavours and varieties like African Choco and Hazelnut and Kit Kat Chunky. Segmentation
Like Cadbury, Kit Kat is a brand well liked internationally. It therefore does not segment geographically. It has divided the population among different age groups and runs different ads to cater to the changing demands of these age groups. When Kit Kat was launched in India, it created a different segment for it altogether as there were no wafer chocolates available in the market previously. Targeting Through ads like those for Kit Kat Chunky in India, Kit Kat is aiming to rekindle its popularity among 18-23 year olds. This campaign was very successful and was proclaimed as the greatest Nestle success in this decade.
Recently the launch of a Lite variant targeted the new segment of health conscious Indians (Fuller & Hoffmann, 2004). Positioning The brand has been positioned as a product which provides instant energy and life to boring situations. Also, through the introduction of Chunky, Kit Kat has taken a side step from its conventional four finger bars. This is aimed at introducing a new image for Kit Kat. Communication Strategies Kit Kat has launched several marketing strategies many of which involve eating Kit Kat as ‘ritual’ for the Indian people.
This was aimed at establishing the brand in the hearts of the people. The global campaign “Have a break, have a Kit Kat” has helped the brand in establishing a strong place for itself. Different taglines like ‘Eat Kit Kat, be happy’ have also been used recently in India. The recent “Kit Kat lite” ad has been launched as a success with its claims of ‘50% less sugar’ (Dr. Chandrasekar & Suresh, 2009). TARGET MARKET Primary Market Chocolate has previously been considered a privilege of the rich. However, Forbidden Delights is targeting the larger segment of the population which includes the middle income group.
The age of the target market varies roughly from 18-25 years which will include students who have greater exposure to media and international trends. This is the target Market which can easily afford the product, they can easily be converted to another brand because usually people with age above 25 they get loyal to some brand and they stick to it, or at least it’s difficult to make them switch to another brand. People in the age groups 18 – 25 years, they like to explore and keep trying new things so it is the most appropriate target market.
Secondary Market The secondary market includes people below the age of 18 yrs and above 25 yrs of age. Chocolate is a product which is liked by both the young and the elderly. However, as it is not a part of the traditions of India, these segments will be a little difficult to cater to. Another important aspect for not targeting these segments initially is that people below 18 usually are not he buying decision makers in India because most of the shopping is done by mothers and they are the decision makers for these kinds of products.
Whereas, if we look at the segment that is above 25 years, these are the people who are loyal to brands and are difficult to make switch the brand. Initially, it’s difficult to start targeting this segment but later on when the brand has some value, the focus could definitely switch to this segment too. OBJECTIVES Marketing objectives In India, the per capita consumption of chocolates is extremely low – 20 g/ person with a greater preference for traditional sweets, jellies and candies. The chocolate industry is rather fragmented. However, recent years have shown some favourable trends with an increase in consumption of 10% per annum.
The market size is around 16000 tonnes a present and has immense room for growth: Forbidden Delights aim at tapping this potential. It aims to become a major player in the chocolate industry of India and later to expand its operations globally particularly focussing on the UK. The main objectives are to (Fuller & Hoffmann, 2004): • To gain around 50% of the market share in India • To create awareness and generate positive word of the mouth for the brand. Communication Objectives: An effective communication plan will be established with the objective:
• To generate awareness about the different ways in which Forbidden Delights can be used to add colour and a different taste to life • To develop the interest of people in the brand and generate a need to sample it • To inculcate in the target market a desire to purchase the product • To develop a readiness to purchase the product • To create the willingness as well as the ability to buy the product readily and easily MARKETING COMMUNICATION STRATEGY The marketing strategy will be push and pull initially and will eventually turn to pull strategy as the market matures and awareness and liking for the product grows.
As the product is launched, a simultaneous marketing campaign will be launched which will include both B2B as well as marketing directly to consumers. B2B marketing will be used in order to convince major stores and outlets to place Forbidden Delight among the other confectionary items and to acquire favourable shelf space. This will include offering special discounts to retailers as well as providing POS decorations and store display racks etc to achieve maximum visibility for the product (Thanke, Rohm, 2009).
Ads will be run across major television and radio channels in order to promote the product among the general public. Print media will also be used for effective marketing and this will include youth magazines as well as popular newspapers. This will be used to create awareness and induce trial for the product (Jobber, 2007). Previously chocolate has been associated with the higher income groups, however, this brand is aimed as ‘luxury’ for the lower socio economic groups and is aimed at bringing a new taste and a new trend to the people of India.
This will be done through increasing awareness through mass communication practices which will aim at reaching out to a large segment of the population. The pricing will also be penetrative to cater to a large market. ADVERTISING Advertising Objectives • To penetrate a large segment of the market and generate awareness and positive word of mouth for the product. • To create knowledge about how chocolate can add a different dimension to the lives of the people • To drive the retail outlets to stock the brand among other confectionaries and to gain maximum shelf space for it
• To attract trial for the product • To convince people to switch to chocolates as a healthier and tastier substitute for traditional sweets Advertising Strategy The main strategy is to make people aware of the product. The product will be positioned on the basis of its quality and taste. The different variants of the product e. g. ‘kalakand’ will be aimed catering to the sweet tooth of the indigenous Indian people. A low calorie variant will also be developed in order to cater to the health conscious and ads will be printed in health and fashion magazines.
Besides this, seasonal advertising will also be done during holiday seasons like diwali where sweets gain immense popularity. Special gift packs will also be developed for these seasons (Jobber, 2007). Advertising Tactics The advertisements run on TV will be minute long jingles to emphasize a sense of life, joy and vibrant energy. These will be run in both television and radio. The print ads will preferably be front page ads to capture maximum attention. They will also be placed alongside TV program listings. These ads will incorporate a sense of luxury and modernity enhancing the simplistic Indian lifestyle.
SALES PROMOTION Sales Promotion Objectives Sales promotion campaigns will be run alongside advertising campaigns in order to generate trial and induce liking for the product. These will include promotions to retailers as well as to customers, to build the brand and create a fan following for it through the establishment of brand loyalty (Backett, 2008). Sales Promotion Strategy In store sampling will be introduced in a 5 day event following the launch of the product across major retail stores in the biggest cities of India.
Gift packs will be launched for different occasions and special discounts will be introduced to induce sales and to increase popularity for the product. Different discount packages will also be introduced from time to time. An initiative which is at present in the pipeline will be introduced over time. This involves partnering with a chocolate cafe or bakery so that recipes using Forbidden Desires chocolate can be introduced. This will be revolutionary for India where an entire chocolate experience will be created (Fill, 2005). PUBLIC RELATIONS
PR will be used to enhance the Forbidden Delight experience and to make it a brand which people are tempted to indulge in to satisfy their deepest needs and desires. Several events will be held such as “Create your favourite Forbidden Delights recipes” and ‘Discover your own personal Forbidden Delights’ (Smash, 2009). Also, several endorsers like famous singers will be used to endorse the product. Contracts will be established with shows like Indian Idol which will feature the product (Jobber, 2007). PERSONAL SELLING Personal Selling Objectives
This will complement the existing marketing strategies and will aim at creating an all encompassing experience for the brand. Personal Selling Tactics These will include road shows where mobile vans will go through different neighbourhoods and various malls in order to induce trial as well as create awareness for the brand. The road shows will feature games and activities for children as well as some themed activities to symbolize how chocolates can be used to add richness to different celebrations. Also interior designing shows will feature the brand on drawing room coffee tables (Backett, 2008).