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September 05, 2009c



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Prasenjit Sen (081136)

MBA FT II/Section A
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The product which will be launched in the Indian market is a moulded chocolate from 

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 named as µ !"#¶ which has got appreciable demand
and volumes offtake in the current Indian market and this segment
is majorly dominated by 
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more than +,c
 market share. Cadbury was the first mover in the Indian chocolate market
and enjoys monopoly. There are not too many competitors even in the current scenario in the
moulded chocolate segment because the Indian population has developed a taste preference
towards Cadbury¶s Dairy Milk which is tough to remove. Along with this over the years Cadbury
has also developed an unparallel depth of distribution and remote penetration even in the rural
areas using all modes of communication media: Print, Television as well as Radio.

Although there are a few competitors like  and  their depth in portfolio of moulded
chocolate is not immense and lags way behind Cadbury¶s both in terms of sales volumes as well
as market penetration.




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The moulded chocolate that we would be launching would target the youth segment and would
be launched using promotional tools like: Window displays, POS displays, Danglers, Banners,
display tableau vans, etc.

The packaging would also be colourful to target the youth. The colour of the wrapper would be
brown and gold with a sign.

There would be intense advertising campaigns in Print, Television as well as Radio which would
be discussed later.

The major communication objectives are to drive the demand of the product and create a
sustainable offtake.

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yc Customer loyalty is a major factor in this segment. Consumers are generally not loyal to their
brand and do easily switch to some other brands.
yc If the company wants to attract new customers to its product and wants to make it popular, it
needs to build up a comprehensive communication strategy for creating and increasing
awareness about the product.
yc The company needs to first identify the correct consumer segment in order to target its
communication strategy to them, so that it will be most effective.
yc Also, the company needs to emphasize on its USP, which is cool quotient.c
yc In India the yearly sales of chocolates is 43000 metric tonnes and is valued at 1672 crores.
Percapita consumption of chocolates in India is 300 gms/month compared to 1.9 Kg/month in
developed countries like USA. Thus there is ample opportunity to increase the appetite of
Indian consumers towards chocolates.
yc The yearly growth rate of consumption of chocolates has been a whopping 18 percent since
2002.There is a huge untapped market for chocolates specially the rural areas where the
penetration is just 16 percent.
yc Moreover there is a huge young population in India. India has got the highest proportion of
population below 14 years which is 34 percent more than any other country. Since people
below 14 years consume 80 percent of the chocolate sales there is a great chocolate market in
the making in India.
yc But there are some inherent problems with the Indian market like storing chocolates. In the hot
and humid Indian weather retailers needs dedicated Visicoolers to store chocolates. Hence
there is an extra cost of the Visicoolers which the company has to bear. The monthly electricity
and maintenance charge of these Visicoolers is another overhead.


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Above market research shows that there is huge potential for moulded chocolates in India.
Although there is a prevalent brand leader in Cadbury¶s there is still huge potential for new
entrants to tap the market and even penetrate in the rural areas where there is huge potential.
Thus the value proposition should be put in such a way that it emphasizes on affordability,
quality, taste and smoothness. Moreover there is a huge young population in India. India has got


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the highest proportion of population below 14 years which is 34 percent more than any other
country. Since people below 14 years consume 80 percent of the chocolate sales there is a great
chocolate market in the making in India. Thus tapping the youth segment would be a feasible
option for Dragon Brand.
Since the most acceptable and effective media in India are Print and Television and impulse
products like chocolates requires more visual exposure thus these two media channels should be
used in creating an effective marketing campaign.

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' The product which will be launched in the Indian market is a moulded chocolate from


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 named as 0!"#.


' Initially the chocolate would be a moulded chocolate with crispy wafers inside and
would come in flavors of mint, almond, hazelnut, mixed fruit and dark chocolate. Later after
market penetration other variants would be launched like chocolate caramel, white chocolate,
dark chocolate and assorted chocolates targeting different age ranges.

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: The chocolates would come in different packets of varying sizes, SKU¶s and shapes
starting from 16 gms, 32 gms, 64 gms, 90 gms and 120 gms.

)' The price range would be between Rs.5 to Rs. 100 targeting all segments of customers
from the low income group to higher income group and lesser than other competitive brands
available in the market.

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'c(The channels given would be targeted)

Ten channels as a part of its sales distribution network which are segregated into five sections
would be targeted:

yc Planned Shopping channel

yc Ad Hoc shopping channel
yc Specialty food and drink channel
yc Business partners
yc Regional Partners

These five sections accounts for the different networks from where the chocolates can
distributed to the consumers.

The bulk volumes of chocolates are sold to the planned shopping outlets which account for the
major volumes of sales and includes the supermarkets and the large groceries.

The ad hoc shopping outlets includes the pan plus counters which account for the least volumes
and offtake.

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Teen, Tween and Youth Segment
' 8 ± 28 years.
%1' Unisex

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' Any income range.

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6' Consumers covered would include all ranges of lifestyle including upper-middle to
low scale lifestyle. Targeted at young, vibrant and enthusiastic youth who are socially active.
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Ä There personality traits include an openness to try new things. They are
independent and do not think twice before purchasing an item and are impulsive.
o' They love to try new things of different tastes and are impulse driven.

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—c Focus on nutrition and energy

—c Low calorie
—c Affordable product

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—c Promoting health & wellness

—c To be the most preferred meetha snack
—c To be a preferred choice for health conscious customers

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0!"# chocolates would be bubbly, exciting and delicious. It will melt once put inside the
mouth at once. Will be healthy and energetic and would be a convenient and easy snack in
busy times. The product will be extremely affordable and conveniently available in most
outlets hence would become the youth¶s most proffered snack.

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—c Health & wellness
—c A quick and affordable snack
—c Healthy and Energetic

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The major competitors are multinationals like Cadbury, Nestle, Mars, Snickers and Amul
having similar products with minor differentiation. The product will take pie of the market
from these major players due to its high quality at low pricing strategy. With different variants
in the moulded chocolate segment and strong emphasis on bubbliness, smoothness and
softness the product will give strong competition to the existing players.

The major hindrance in sale of the product are perception of consumers about the brands
prevalent in the Indian market like Cadbury. Indian population has developed a taste
preference towards Cadbury¶s Dairy Milk which is tough to remove. Along with this over the
years Cadbury has also developed an unparallel depth of distribution and remote penetration
even in the rural areas using all modes of communication media: Print, Television as well as
Radio. The brand image of Cadbury is backed by regular advertising and brand promotion
campaigns for which it has developed a supreme brand recall among the consumers. The
consumers mainly associate chocolates with Cadbury¶s. Moreover it is quite affordable and
has a wide depth of product portfolio. Thus Dragon¶s Break brand has to communicate its
advantages of low price and high quality to the prospective customers and has to change the
taste preference through intense advertising, promotional campaigns and marketing strategies
such as:

—c Mass advertising
—c Tie up with some eminent Fast Food chain or Coffee chain for direct sampling of its
chocolates
—c Organizing Events
—c Rolling out display tableau vans in eminent cities
—c School Based Promotions

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The brand is new to the market which is dominated by some of the established players. Hence,
there needs to be a detailed communication and advertising campaign in place in order to create
an awareness and liking amongst the people. The product in question has to attract consumers
and make them loyal to its brand. Because in the chocolate market brand switching is very
common. For e.g. a person purchasing Cadbury might instantly switch to Nestle in order to have
a change of taste.

Firstly, a primary research needs to be carried out to the target customer base after identifying
them and the communication needs to be targeted. It will also help in knowing what the
consumer exactly need. Also, it will help in knowing who the competitors in the same segment
are targeting and what communication channels are they using.

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yc Extensive communication strategy needs to be planned.

yc Need to carry out the primary research to know who the target customers are and whom to
target the communication to. Also, to know whom the competitors in the same segment are
targeting and what communication channels they are using. Need to highlight about the USP
of the product in the communication channel that will be used. This will help the users to
know how the product will benefit them.

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The product launched will be at its introductory stage. Thus the target population is not much
aware about the product and brand hence the print ad should clearly explain the value
proposition of the product stating its smoothness and richness of taste. Also the products website
is displayed for more information about the product at the bottom, enducing consumers with free
sample offerings by visiting the web site. This will act as a promotion strategy and attract people
to visit the site intensively and gather more product information. Data mining tools can also be
engaged to find out prospective customers and hence target them in the future. The print ads
would be featuring on national newspapers having a wide circulation and would feature along

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with sports page as a chunk of our target group would be fitness freaks and the younger lot who
are usually interested in reading the sports column.

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The television ads again would target the masses that may miss out our presence in the radio
advertisements and the print ads. Moreover as chocolates are an impulse product the television
ads would even more stimulate the consumers to try out our product. Also the television ads
would urge the customers to try our product as various gifts and accessories would be given to
the customers along with the Gift Packs of our brand to push our product. As the chocolate
market is an intensely competitive market dominated by brands such as Nestle and Cadbury and
the customers would obviously be inclined to buy a famous and tested brand, our product would
require more branding and promotions. Therefore in the initial phase of the launch of our product
would be through the free samples and the stress on the value proposition of the product would
be focused upon to urge the consumers to try out our product and eventually develop a taste
preference towards the product. The television ad would be on the following lines ±

(The photos depicted are downloaded from internet and tries to resemble the scenario in the
script as closely as possible)

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' Two boys are coming back from college, absolutely
exhausted after attending classes and on their way home are
planning to have a small snack which would be really affordable
and energizing. The summer heat is intense and making them feel
even more fatigued and hungry.

!c5 (Totally exhausted): Yar Class kar kar ke thak gaye«.

!c 6 (Panting after walking a long distance from college): Ha

Yaar. Chal ab kuch kha lete hain« kuch meetha ho jaye kya? Aur
jo energizing bhi ho«.

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!c 5: Sahi kaha yaar. Chal lets

have Dragon¶s BREAK.Saasta bhi
hai aur zabardast tasy bhi. Pet bhi
bhar jayega.

!c 6: Is it? Maine abhi tak try

nahin kya.

!c 5: Kya bol raha hai

yaar«.you haven¶t tried Dragon¶s
Break«..its so smooth and
chocolatey«. kho jayega«.its a
deliciously different eating
experience.

!c 6: Chal phir ek bar try karke

dekhte hain«waise bahut log bol

rahe hai iske bare main«

!c 6 (Goes to a nearby shop and asks the

Shopkeeper): Bhaisaab ek Dragon¶s BREAK dena.

%: To tum logo ko bhi Dragon¶s BREAK hi chahiye.Kya baat

hai ajkal sab log sirf ye hi kha rahe hain???? Ye lo sirf ek piece hi bacha
hai««

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!c 6 (Chewing the bar and letting it melt slowly

inside his mouth, lost in the ecstatic taste of Dragon¶s
Break): Ummmm«..wah kya swad hai«.sahi bola tha
yaar«..sooooooo smoooooth and chooocolaaaateey...

!5: Arre mere liye bhi to kuch bacha ke rakh««

!c6: Sorry yaar I cannot control myself«..I am completely lost in the

taste«.

!c6 (Still enjoying the blissful and divine taste of the chocolate)

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%c (laughing and facing the camera) : Haahaahaa«« Dragon¶s

Break khane se sab ka yehi haal hota hai«..Aap bhi khaiye aur kho
jayiye«.

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c3c(Background music with Jingle): Dragon¶s BREAK«..

´A Deliciously Different Eating Experience ³

So Smooth... So Delicious...So chocolatey«

You will be completely lost in the taste«.



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The product will mark its pan India launch throughout all the sales channels described above.

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There would be school promotions where free samples would be distributed. Moreover gift
coupons would also be given to induce repeat purchases.

The market has to be flooded with Point Of Sale and in almost all the retail counters displays and
provides visicoolers to the retailers to display our brand. Hoardings, Danglers, Posters and
Banners have to be displayed to improve visibility.

Below the Line Promotions: %o3)c c%o3)


—c The µshop in shop µwould basically focus to increase the visibility and enhance
the reach of our product to the masses. This practice would include hiring shelves
on rent in TTO (traditional trade outlets) and working on the visibility in these
shelves.
—c Special show windows and shelf spaces have to be hired to display our brand in
eye catching positions in prominent retail outlets in major locations in the cities.

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The PR and Publicity campaigns will include:

—c Billboards
—c Tableau Vans
—c Hoardings
—c Posters/Banners
—c Movie Marketing
—c Special product launch campaignsc


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Dragon¶s sales team would be promoting their BREAK chocolates through a series of
advertising campaigns via print ads which would feature in a series of national newspapers and
advertisements. One of the other major points our advertisement and print ads would be focusing
on is the richness and smoothness of BREAK chocolates which would be also reflected in the
punch line: ³So smooth... So delicious...So chocolatey«You will be completely lost in the
taste«.´

The print ads would be a mix of: Half Page and Quarter page ads in major magazines like Times
of India, Indian Express, The Hindu, Hindustan Times, Deccan Chronicle, Dainik Bhaskar,
Telegraph and several other local vernacular newspapers.

The print ads would also be published in famous and popular magazines like: Businessworld,
Outlook, Femina, India Today, PC Quest, Health and Nutrition, Cosmopolitan, Elle India, etc.
This will create visibility of our brand and product.

The radio ads again would target the masses that may miss out our presence in the television
advertisements and the print ads. The company would book slots in major radio channels like
Radio Mirchi, Power FM, Red FM, etc. and would continuously broadcast its ads for a month.

There would be online advertising as well. This would be a appropriate tool for the product to
increase awareness and visibility as a major chunk of the current younger generation are avid net
users. The popups for our product would feature in the:

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—c Websites which are a host of the avid fitness freaks like the famous gym sites and those
of health, yoga and fitness centres.
—c Would feature in the top of the google adwords.

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Mailers, postcards, fliers, brochures and snap mailers giving details of Dragon brand and the
different SKU¶s of BREAK chocolates can be sent to prospective consumers. This will
immensely add to the visibility of our brand.

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—c The ads of BREAK chocolate can be published in social networking sites like Orkut,
Facebook, Twitter, LinkedIn, Nirmayans, etc. As these sites have the maximum number
of hits in the internet the publicity of our chocolate brand would be immense.
—c Mobile marketing can be done for our chocolate. Special discount offers can be sent to
prospective consumers via sms.
—c Bluetooth and Viral marketing can be employed as innovative means to promote BREAK
chocolates.

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—c We would give free samples of our product in fests / festivals in schools and colleges.
This gimmick would basically focus on increasing the awareness of our product among
the young customers and our sales team would focus on increasing the visibility and
distributing free samples of different variants of our juice in various college and school
fests (the college and school fests are a main centre of attraction for the youth who are
usually not so fuzzy about trying new products). Such sampling would spread the
awareness and spread word of mouth marketing.
—c Special chocolate shows can be organized .The Chocolate show would be the ultimate
show for chocolate lovers. Consumers, trade and media converge would be there to
celebrate chocolate in all of its forms. It would be a consumer show entirely devoted to
chocolate.c

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