Chocolate industry India Essay

Introduction The grocery store leader of the deep br aver industry in India, Cadbury, is a British subsidiary of the Ameri discharge multinational confectionary, food and beverages imperium Mondelez International. Cadbury, is the second largest confectionary come with in the world, close on the heels of def showtimeer, Inc. In India, Cadbury owns a batch place shargon of 66 %, evidentially ahead of the fresh(prenominal) multinational comp whatever operating the same space for many socio-economic classs, approach India, as sound as otherwise national, foreign and regional sends a wish Amul and Ferrero.Cadbury India began its operations in India in 1948, and has been a trusted and favored grass for decades in India. The market sh ar has decreased from 70-80% in view of themeing entry of other international coffee bean companies in the Indian market, however it is take over signifi butt endtly large. Cadbury figures in the Brand Trust Report, 2011 in the Top cok e Most Trusted Brands in India. While Cadbury sells intersections in several categories much(prenominal) as freighterdy, gum, beverages and coffee bean confectionary, this floor is aimed at studying the selling dodge employed by Cadbury India in view of its cocoa confectionary business.Some of the fruits in this category include the highly popular dairy draw, Dairy take out Silk, Bournville, Temptations, 5 Star, Dairy take out Shots, Celebrations, Perk and Toblerone. In order to discerp the merchandise schema for Cadbury, this report begins with a SWOT analysis of the alliance. environmental Analysis Political Food Safety Act 2006 Detailed and tyrannical regulations, for standards of mathematical product as well as imported hot chocolates, exist in India. Opportunity. Cadbury is better equipped to follow standards in production than smoother regional or local brands. Strength.Expand into the country atomic number 18as before local or regional companies focus on the rural market. Import Tax pass judgment on drinking chocolates A tariff rate of 30% is levied on chocolates. Opportunity. Strength. drive for amplitude chocolates at affordable harms butt end be encashed before outside(prenominal) entrants lot grow their roots within the Indian industry by introducing and militantly merchandise domestically manufactured premium chocolates. Economic Per Capita expending Patterns The biggest custom category in India is Food. Spending in this amounts to almost 21% of the Gross Domestic merchandiseion. People, on average, spend 31% of their budget monthly, on food.70% of the food spending is on agri-products, which in incorporateds candies and confectionary including chocolates. Two-thirds of this spending is on impact products. Domestic spending on food is expected to grow at a compounded 3 annual growth rate of 4% and billed to reach approximately 320 billion US dollars in cling to within the next 7 years. USD 841 million is washe d-out on chocolates and confectionary in India. Opportunity. In ho social occasionholds across income assemblages, a large cover of money spent goes towards processed agricultural products including chocolates and other confectionary accompaniments.This can be encashed by development effective conduct to reach out and sell to humble and lower middle income convocations. Strength. Socio-Cultural Social and cultural acceptability of products there is an increasing espousal of chocolates as an equivalent of traditionalistic sweets in urban argonas. hot chocolates argon, however, however seen as a luxury food full stop in rural areas. Opportunity. Chocolates are increasingly creation seen as an equivalent or substitute for traditional sweets in foothold of the convenience it offers when used for lay outing on occasions. Strength.Cadbury is already functional on this approach to sell to urban consumers. Rural consumers can in like manner be reached out to and offered chocolates as a freshly gift item replacing sweets leading to increased sales. Technological Constantly improving engine room in chocolate making leads to better tasting products as well as to a greater extent convenient storage. Opportunity. Strength. Cadbury has the financial capability to invest in R&D and has already produced products that are better conform to to Indian relishs and storage conditions that other unconnected entrants into the industry are non yet as well adapted to. Natural factors.Climate for umber Production Cocoa, used to produce chocolates can only be openhanded in regions 15 degrees to the north or south of the equator. Cocoa, originally a crop native to the Amazon basin, can only be bounteous in the southern states of Kerala, Tamil Nadu, Andhra Pradesh and Karnataka. It is non a commonly expectant crop. Threat. Lack or scarcity of domestic coffee producers can tint production costs of chocolates within the country. Strength. Cadbury has encou raged farmers in Kerala to produce drinking chocolate since the 1970s and is flat in the process of promoting Cocoa as an inter-crop construct for coconut growth farmers.Successful pursuance of this connect with the farmers would do Cadbury achieve raw material at lower charges within the country. Consumer behavior shape up composition 66% of the population is below the age of 35. Opportunity. It implies that a Brobdingnagian part of the population can be encouraged to take up function of chocolates more frequently and will be met with less protection than that put up by older consumers with already set feature habits. Strength. 4 Competition Traditional Sweets Very widely on tap(predicate) and traditional choice, just outright inconsistent in hygiene takes and taste. Threat.Build on physique of chocolates be a better and more hygienic choice, which adheres to food synthetic rubber standards set out by the Govt. Build on image that chocolates are a more sophisti cated choice for gifting carrying greater meaning than mithai from vicinity sweet shops. Strength. Confectionary items like candies, cakes and icecream Candies are easily procurable and appeal to children who put one over traditionally been the posterior consumers for chocolates. Threat. Cadbury can emphasize more strongly that chocolates are non meant only for children but for matures as well who may not prefer to eat candies.Cadbury chocolate can be offered as an experience, that is not replicated by buzz off candies and conectionary items. Strength. Entry of several foreign players As India is seen to flip a rapidly growing chocolate consuming country, with people free to spend not only on inexpensive smaller packs of chocolates, but withal premium chocolates as well, foreign players contain started foraying into the market with the promise of establishing a battlefront in the premium sector at least. Threat.Cadbury can increase its foothold in the premium sector of chocolate industry by launching and promoting premium chocolate brands with higher cocoa meaning which could be priced a bit lower than the foreign brands. In fact, Cadbury is already in the process of implementing such a strategy through with(predicate) with(predicate) the fundament of Bournville and Toblerone. Strength. Suppliers Global take inwork Half of the cocoa sourced for chocolate making by Cadbury is from sources around the globe, including countries like Ghana, for its famous brand Bournville.Opportunity. Cadbury can source the bulk of its cocoa from farmers in India through sustain farming, while importing from foreign countries specifically for certain brands only. This will patron reduce loss payable to global fluctuations in cocoa bean prices and as well as reduce post or shipment costs. It will also help create an tear down more peremptory image in the eyes of the Indian population. Strength. lead net Cadbury has CSR activities directed at the farmer s who are producing cocoa on contract for Cadbury in the state of Kerala.Opportunity. Cadbury is straight off in the process of extending these activities to farmers in 3 more southern Indian states. This will help cement positive relations between the cocoa growers and the brand, which may put it at an improvement when compared to new foreign entrants in the country like Ferrero or Mars, Inc. Strength. 5 Advertising environment Use of role models Trustworthy role models in the media, when used as Brand embassadors, give a much contractful push to the further acceptance of a product. Opportunity.Cadbury has been able to utilize this by roping in celebrities like Amitabh Bachchan, thus emphasizing the idea that regular(a) big(p)s can arouse chocolates, since even a someone of Amitabh Bachchans summit has not shied a way from having them. Cadbury also has the financial power to rope in more high profile celebrities for the same. Strength. Availability of media and ad agencie s Several media channels like TV, Radio, newspapers are available for Cadbury to agitate on. Opportunity. Cadbury has been advertising its chocolates heavily throughout, to nurse the brand on top of the mind deny.There have been numberless ads by Cadbury that have long stayed on peoples minds and even evoked nostalgia, indicating a deep connect of the brand with the audience. Strength. Segmentation Cadbury section the consumer based on age. Till the 1980s, chocolates were seen as a luxury item which were eaten only on special occasions or used to support children with. Despite being the market leader already at this magazine, Cadbury intractable to reshuffle their marketing strategy and position chocolates as a eat and an every twenty-four hours item of consumption rather than a special treat.In order to do this, the stolon step was to segment the consumers. Geographic or occupation based segmentation would have proven less applicable in helping raise revenues generated fr om chocolate sales. The segmentation was done on the basis of age. The subsisting segment of choice for Cadbury had been children up to the age of 14 who had been driving the consumption of chocolates until the 90s. The other segment that the consumers could be grouped into was the adult population. Targeting The decision made to target a segment is based on gauging the segment bewitchingness of the segment.During the 90s, with a rise in the population of the 15-35 year olds, approved with a surge in income and spending power due to the simultaneous opening up of the economy, made the adult segment an kind one and since then, it has been targeted by Cadbury. Being the market leader already, switching to this target consumer group was not a difficult move for them, in terms of channel enchantingness of the segment. The existing channels which served the consumers until the 90s, such as kirana stores, have no resource intensive special adaptations to serve the youth consumer gro up as well.Alongside this, competitive attractiveness of the youth segment was also high since no other chocolate company had targeted this consumer group so far. Although this meant 6 Cadbury requisite to put in extra marketing cause to change the social acceptance of chocolates in this group, it also translated into a first mover advantage for them. Positioning Positioning is the decision of how the brand wants to be perceived as by the target consumer group vis-a-vis competitors.Cadbury has positioned itself to run to specific needs and attributes that the target consumer group looks for. Cadburys objective was to draft the customers of the adult age group. In the early 90s, Cadbury had the leading voice in the market but the volume of sales in terms of per capita consumption was very low compared to western countries. This was also because consumption of chocolate by children was strictly governed by adults and hence increasing per capita consumption within the children con sumer group was not a feasible option.In order to widen the net of consumers, Cadbury had to increase the social acceptance of chocolates in the adults age group. This was done through the means of extensive and successively huge ad campaigns which eventually move the attitudinal barrier that existed. Cadbury had wanted to and has successfully moved from the perceptual experience of chocolate being a childrens product to a celebratory/gifting product, and more late(a)ly an indulgence product (For instance Cadbury Silk).In 1992, Cadbury launched a series of scrappy ad campaigns starting with genuine Taste of Life which showcased adults eating the chocolates on their own and not in a parent role or buying it as a reward or a way to say sorry to loved ones. This included the famous ad Kuch khaas hai zindagi mein which showed adults enjoying the taste of chocolates on their own. Later on, Cadbury launched a campaign for Perk which said Thodi si pet pooja which emphasized the use of the chocolate as an any time raciness to satisfy hunger, which was a marked shift from the earlier perception of chocolates.Later, to promote Cadbury chocolates as an alternative to traditional desserts, the kuch meetha ho jaaye campaign sought-after(a) to change perceptions once again, this time including the entire family consisting of elderly grandparents also in the ad to show acceptance of the Cadbury chocolates as dessert. By tying chocolates to Indian customs, and festivals, like Celebrations in particular for Raksha Bandhan and Diwali, Cadbury has come a long way from the Real Taste of Life campaign, and Indianized itself in order to entrench itself within the minds of the adult population in India.Marketing Mix 4 Ps Product/Service Product There are four types of products by Cadbury India, and this report is focused on the Chocolates category. These aim to satisfy the hunger need as well as relaxation and convenience need (easily available snacking option). In order to satisfy these needs, the 7 product is available very easily, at least in the urban markets and in divers(a) sizes. Cadbury chocolates are mark so as to represent close to emotional core determine like family reputes, and togetherness, but at the same time, they are also brand as a fresh, satisfying, convenient product.Place Cadbury has 6 company-owned manufacturing facilities 1. 2. 3. 4. 5. 6. Thane Induri (Pune) Malanpur (Gwalior) Bangalore Baddi (Himachal Pradesh) Hyderabad There are 4 sales offices, one each in New Delhi, Mumbai, Kolkata and Chennai. The corporate office is in Mumbai. In terms of dispersion, Cadbury chocolate products are sell directly to wholesalers and retailers. The network comprises roughly 2100 distributors and 4,50,000 retailers. The chocolates are sold through Kirana stores, gift stores, medical stores, canteens, paan shops, bakeries and so on.Price The generally established price halt for chocolates in India is Rs 5 and Cadbury has 4 products at th is point including Dairy take out, 5 star, gems and perk. This price point accounts for half of chocolate sales in India. At the same time, Cadbury sells multiple contrastively sized packs on a commit of prices, going up to higher, premium priced products as well such as Bournville. In this way, Cadbury has a hold on several(a) price points available to various groups of consumers based on their appetite for spending.Promotion Cadbury promotes its products through various media channels. It uses mainly television ads with strongly featured taglines that get associated with the products easily. There is many amount of seasonality in the market in the way that demand ideally goes up during festive season due to gifting needs and Cadbury launches special ad campaigns around those times to encash on this increased demand. National level competitors like Amul have been unable to match up to the scale of promotions undertaken by Cadbury.regional players hardly advertise on a big scal e through campaigns. However, its MNC competitor Nestle has its own promotional ads and campaigns that seek to rival Cadburys and sometimes directly challenge the Cadbury ads. 8 Recommendations 1. In view of the recent entry of foreign players in the market, though Cadbury does not face the holy terror of losing a significant amount of its existing customers, for instance, those who buy Dairy Milk or Perk, there is a possibility of losing out on say-so customers who are interested in premium chocolates.Since this is a rapidly growing industry, and being the established market leader, Cadbury should focus on its premium chocolate brands in a big way through more overt ad campaigns and promote their products based on the brand equity they have built through the years. 2. While leveraging the lower cost of Cadbury premium chocolates vis-a-vis foreign chocolates, Cadbury must take care to ensure it does not go the Tata Nano way, as lower prices in the premium segment may be perceived as lower case in the product de drop deadred as well.3. As it has already managed to successfully position chocolates as a snack for childrens as well as adults consumption, it can now focus on activating the elderly consumer segment which is typically more resistant to chocolates compared to traditional sweets and feel guilty on indulging in chocolates even if not restricted by health reasons. 4. Cadbury can now change the positioning of certain specific products or introduce new products to furnish to instant energy tolerant needs homogeneous to Mars bars abroad. 5. Recently, a 20-calorie chocolate has been developed in the UK which is now being sold at Michelin starred restaurants.Cadbury can also direct some of its R&D endeavors towards developing a similar product which would give the company a distinct edge over competitors and help tap into a new markets and increase their consumer width. 9 NATIONAL marking 10 Introduction Amul is an Indian dairy Co-operative based o ut of Anand in Gujarat. The co-operative started off as the Kaira District Co-operative Milk Producers Union in celestial latitude 1946. The Co-operative was set up by the take out producers of the Kaira district of Gujarat who felt cheated by the unfair trade practices.The co-operative collected processed and marketed draw and was co-owned by the take out producing farmers of the district. The brand Amul was used by the Kaira District Co-operative to market its brand of milk products. By the 1970s the Co-operative model had become highly successful and spawned similar Co-operative in other district s of Gujarat. In order to combine together and expand their market while not competing with each other, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), an apex marketing body of these district co-operatives was set-up in 1973.The brand name of Amul which was held by the Kaira Union was transferred to GCCF. Today, the GCCF is the largest food product marketing organisa tion of India. The co-operatives collect around 10 million litres of milk per day from around 3 million milk producer members of the Co-operative. Its current upset is around Rs. 140. 0 billion. Amul started producing and marketing chocolates in 1970. It currently markets 6 different chocolate brands namely Congtas, Fundoo, Chocozo, Bindaaz, Rejoice, Almond Bar, Fruits and addict and Amul cooking Chocolate.Current market share of Amul chocolates is just 4% as compared to market leader that is 66%. The main reason behind such low market share is lack of promotion and more focus on dairy products. environmental Analysis Strengths ? ? ? Raw material (milk) security Major raw materials for the production of chocolates are Cocoa, milk and sugar. Milk supply is secured for the company which protects it from any excitability in prices. High brand awareness Amul through its concerted marketing over the last 5 decades has created a brand that is synonymous with beneficial quality.The bran d has also become a symbol of successful Indian entrepreneurship that has positively impacted the lives of millions of small farmers, hence there is a star of patriotism and pride associated with the brand as well. Strong statistical diffusion network Amul has been marketing and supplying milk through a pan India diffusion network which supplies milk and milk products to independent retailers but also to its own milk parlours. 11 Weakness ? ? ? Low market share Amul chocolates have a low market share in the Indian chocolate industry. The brand, though having a strong recall value, is not primarily associated with chocolates.The market leader in the chocolate industry in India is Cadbury with 70% market share followed by Nestle at 20% market share. Co-operative coordinate of Amul Due to the Co-operative nature of GCMMF, there is limited capital infusion in the company. As a result there is a limited scene for aggressive product launches or diversification. Volatility in Cocoa pr ices conflicting the major(ip) chocolate producing companies in the world, Amul does not own a cocoa plantation. The prices of cocoa are volatile in nature as they are dependent on the international demand supply dynamics.Not having a cocoa plantation of its own exposed the company to volatility in prices of this raw material. Opportunities ? Huge untapped market The per capita consumption of chocolate in India has increase from 40 gm per person in 2005 to around one hundred ten gm per person currently. Though this is impressive growth in itself it is still much lower than the per capita chocolate consumption, in countries like Ireland or Belgium which have a chocolate consumption per person of more than 11 kilograms or even USA or Australia which have chocolate consumption per person of around 5 kilograms.There is thus a huge untapped market for growth in the chocolate industry in India. check Strength Since Amul has a strong Brand awareness, people would be willing to buy new pr oducts launched under its brand name. Amul can launcha mutation of new chocolate products for youth and kids. ? Gifting Gift hampers consisting of chocolates has been a successful marketing strategy by companies like Cadbury. Amul too has the Rejoice brand especially for this purpose however there is scope to launch or sharply advertise this.Corresponding Strength Since, Amul is a strong brand name and has a strong distribution network, It can very well advertise the gift packs like rejoice and can introduce new brands give to the same need. ? Advertising Amul need to advertise and carry out tie of promotional activities to inform the consumers that still exist and can provide them with what they want. Its been years that Amuls chocolate advertisement has been telecasted on Indias major television channels.Sales promotions like discounts and free samples can also help them to increase the Brand awareness and attract customers to switch brand from competitors. self-aggrandizing brands use a celebrity as a Brand Ambassador for its product. 12 For example Amitabh Bachchan for Cadbury & Rani Mukherjee for Nestle, Amul can also use a brand ambassador for the promotion of its chocolates. Corresponding Strength Amul has a huge turnover of around Rs 140 billion and is a financially strong company and has enough funds to carry out the needed advertising campaign and promotions.By spending a small percentage of revenue on advertising campaigns Amul can increase its market share to a large extent. ? Low rural penetration of chocolates There is significant awareness of the Amul brand even in rural India. The company can leverage these launch cheaper brands targeted at the rural segment which has till now stayed away from chocolate consumption. Corresponding Strength Amul has been marketing and supplying milk through a pan India distribution network. It has a strong distribution network in rural areas. Amul can leverage this strength and can launch cheaper product s in rural market.Threats ? Strong competition from foreign multi nationals There is significant potential in the Indian chocolate industry which has been attracting international competition. Companies like Cadbury have been launching premium swiss chocolate brands. in addition other premium chocolate brands like Ferrero Rocher are making their presence felt in India. Corresponding Weakness Since Amul is mostly related to its milk products and has not made its presence felt strongly in the chocolate industry, its still far behind its competitors like Cadburys which is a very aggressive player in the chocolate industry.Amul faces tough competition and to handle the same it needs enormous marketing and advertising campaign and introduction of new chocolate products under its brand name. ? Low brand subjection in chocolate industry Chocolates are impulse purchases and compete with categories of soft drinks, snacks and other beverages. Although people may like a particular type of ch ocolate (dark, milk, white, and so on ) there is not a significant brand loyalty. whence this presents a threat to established players in the market.Corresponding Weakness Since Amul has grievously low popularity in chocolate industry and also people are picky while selecting a chocolate, there is not a integrity chocolate brand product under its brand which enjoys strong loyalty from consumer side. Also, people like to try different kinds of chocolates and are not of necessity inclined towards a single chocolate product. Since, Amul does not offer a large variety of chocolates therefore it is at a flimsyer position in the chocolate industry. 13 Segmentation Geographic segmentation Chocolate consumption is concentrated in urban areas of the country.Chocolate consumption in rural areas of the country may be considered negligible. Chocolates are still considered as a luxury product by the population and are hence consumed by the middle and the upper classes of society which resi de in the towns, cities and metropolitan centres of the country. Amul chocolates are thus marketed in these areas of the country. Demographic segmentation Amul chocolates are mostly section its consumers into various age groups like the children, adolescent and youth segments of the society.Since, chocolates are especially liked by children and middle aged and older generations refrain from eating it citing health concerns due to high sugar content of chocolates. Targeting The brands of Amul chocolates like Fundooz, Bindaaz, Congrats etc. have been named to be attractive to the younger generation who use these spoken communication in their daily lexicon. There has been a strategy by the company to provide a young, dynamic and fun loving character to its chocolate through such branding. Amul chocolates also markets two brand namely Amul Cooking Chocolate which is targeted towards the homemakers and professional cooks and chefs.Positioning Positioning is the decision of how the bran d wants to be perceived as by the target consumer group vis-a-vis competitors. Amul has positioned itself as an affordable, value for money chocolate. Since, it has mostly targeted kids and youth, it is still considered as a snack unlike cadburys product like Celebrations which is considered as gifting option. Amul has not positioned itself as an alternative to sweets or has not developed its product to actually cater to an emotional need. It is simply a chocolate available at a lower price. Marketing MixProduct Amul has a very low range of products in its chocolate business. There are only 8 chocolate brands that Amul offers as of now in the market and these are Congrats, Fundoo, Chocozo, 14 Bindaaz, Rejoice, Almond Bar, Fruits and Nut and Amul Cooking Chocolate. The problem is that there is no free differentiation between the products that it offers. For example Cadburys is catering to a different need corresponding to its individual Chocolate product. ? ? ? ? ? Product Dairy Mil k Dairy Milk Shots Bournville 5 Star Perk Need Milk Chocolate (Basic taste and style).Small balls of chocolate (Circular unlike chocolate bars) Dark Chocolate Sweeter in taste with honey as an ingredient Crispier with wafer inside However, Amul tout ensemble ignores such kind of differentiation between its products and hence their product can be easily substituted by their own products apart from the competitors product. Another important factor is packaging because majority of the consumers is kids and youngsters who like attractive packaging. Most kids buy chocolates not just because they like chocolates but also because of the attractive wrappers.Packaging used by Amul stands low on style parameter. Also, it lacks a common theme or top of the mind recall point. For example, Cadburys is strongly associated with blue wrapper and more than brown its the influence blue that we associate with a chocolate. As compared to this, Amuls packaging is weak and lacks lustre. Amul needs to make changes to its product (chocolates) like introduction of more flavours and attractive packaging because the wrappers Amul uses is not at all attractive compared to those used by Cadbury and Nestle.This would keep them in competition with competitors like Cadbury and Nestle. 15 Pricing flash P of marketing that is Price is often confused with blindly leaden the prices of different products and completely relying on this strategy to increase sales. However it is of peak importance to divide the target group on the basis of their price sensitivity and purchase power. Every customer segment has different price expectation from the product. To maximize the returns, it is important to identify the right price level for each segment and then progressively moving through them.Amul has launched various chocolate products to cater to different segments of population. Pricing must take into account the competitive and legal environment of the industry. Majority of people in India live in villages and have low disposable income. With such a non-buoyant competition in the chocolate market, Price plays a very important role. Amul pricing strategy has been Value for Money. Amuls believes in giving value for money to its customers and it has always followed that principle. Its products are of high quality and available at affordable prices.For example, Cadburys Fruit n Nut is priced at Rs 35 per 42 gm pouch whereas Amuls Fruit and Nut is sold at just Rs 25 per 40 gm. Amul offers same quality at a price 30% lower than its competitor. Amul has not launched any premium (high price) product in its chocolate business. Place Place in marketing is considered as the channels of distribution through which products move from the producer to the consumers. The channels of distribution mean intermediaries or middlemen who act as a link between the manufacturer and the consumers.Factors that need to be considered when choosing the place are the characteristics of the product, ch aracteristics of the buyers, control and competitors channels. Since chocolate is an edible product, Amul should adopt an intensive distribution strategy wherein they will manufacture products and make it available at various shop malls, food joints, local stores, Chocolate parlours etc. Corresponding to its strong distribution channels, Amul currently has very low visibility. It needs to increase the visibility through offering discount to retailers along with buybacks to convince them to store the Amul Chocolates.Since Amul is a value for money brand it can be placed anywhere from small kirana shops to big malls. Amul has a big brand name because of its dairy products. They can easily use it to increase the awareness of its chocolates using various distribution channels. 16 Promotion Promotion refers to exchange of information between an constitution and the consumer of its products. Consumers here include Customers, shareholders, employees, government and other parties related t o the products like trade union and media.The aim of promotion is to inform the consumers, differentiate from other products and to diverge them to buy. There are many techniques of promotion like Advertising, Sales promotions, use up Marketing & Personal selling. Amul has been criticised for lack of promotion. Amul has a strong brand name because of its dairy product leadership. Amul must advertise its chocolates using media like newspaper, television and internet to inform the public about the quality & the price of its product. Amul has totally shifted its focus from chocolates towards milk and other milk products and have totally ignored chocolates.Using the mediums like Television and newspaper the company needs to remind the public that they are back with improved products at an affordable price. 17 Recommendations 1. Amul needs to introduce new varieties of chocolates and improve its existing ones. 2. They should introduce milk chocolates like Nestles Milky Bar, Choco lates with fruits and kookie like Cadbury has its Fruit and Nuts, Mint chocolates like Nestles afterward Eight etc.