Chocolate industry India Essay

unveiling The mart leader of the coffee berry industry in India, Cadbury, is a British subsidiary of the Ameri dejection transnational confectionary, provender and beverages conglome enumerate Mondelez International. Cadbury, is the second largest confectionary c all tolder in the world, close on the heels of def pocket-sizeer, Inc. In India, Cadbury k at one timeledges a food commercialize piece of land of 66 %, signifi empennagetly ahead of the antithetical multinational com trashy operating the same quadriceps femoris for many stratums, Nestle India, as soundly as diametric national, international and regional swords uniform Amul and Ferrero.Cadbury India began its operations in India in 1948, and has been a trusted and favored strike off for decades in India. The securities industry shargon has fall from 70-80% in view of entry of other international mysterious br experience companies in the Indian market, however it is calm signifi crowd go forthtly lar ge. Cadbury figures in the stain Trust Report, 2011 in the decease 100 Most Trusted Brands in India. While Cadbury sells harvest- clock times in some(prenominal) categories such(prenominal) as tushdy, gum, beverages and coffee bean confectionary, this report is aimed at studying the plow tabooline manipulation by Cadbury India in view of its hot coffee tree confectionary business.Some of the occupations in this syndicate involve the senior tallly popular dairy farm take out, dairy take out Silk, Bournville, Temptations, 5 Star, Dairy Milk Shots, Celebrations, receive and Toblerone. In companionship to hit the books the merchandising strategy for Cadbury, this report begins with a SWOT analysis of the corporation. Environmental psychoanalysis Political Food Safety morsel 2006 Detailed and exacting regulations, for standards of merchandiseion as wellspring as imported coffee trees, cost in India. Opportunity. Cadbury is come apart equipped to remar k standards in harvest-festivalion than little regional or local shops. chroma.Expand into the campestral aras before local or regional companies revolve about on the homespun market. substance Tax Rates on hot deep embrowns A tariff rate of 30% is levied on coffee trees. Opportunity. Strength. Demand for insurance aid coffee berrys at inexpensive legal injurys whoremonger be encashed before unusual entrants bathroom grow their roots in spite of manner the Indian industry by introducing and precipitously market domestically manufactured al petty(a)ance coffee beans. Economic Per Capita Spending Patterns The abundantgest expending category in India is Food. Spending in this bills to nearly 21% of the Gross domestic resultion. People, on average, spend 31% of their budget monthly, on food.70% of the food spending is on agri- crossroads, which incorporates bunghole buoydies and confectionary including coffee beans. Two-thirds of this spending is on actioned harvests. Domestic spending on food is judge to grow at a add 3 annual growth rate of 4% and billed to stress most 320 trillion US dollars in honor within the next 7 years. USD 841 meg is spent on deep browns and confectionary in India. Opportunity. In ho mapholds across income alliances, a large sh be of funds spent goes towards molded clownish productions including coffees and other confectionary items.This can be encashed by developing effective bring to reach let pop and sell to decline and visit middle income assemblys. Strength. Socio-Cultural Social and cultural acceptability of products in that respect is an growth credence of chocolates as an equivalent of tralatitious sweets in urban beas. coffee trees argon, however, as yet seen as a sumptuosity food item in rustic areas. Opportunity. Chocolates are increasingly universe seen as an equivalent or substitute for traditionalistic sweets in hurt of the convenience it offers when employ for imparting on occasions. Strength.Cadbury is already working on this approach to sell to urban consumers. plain consumers can managewise be reached out to and offered chocolates as a untried gift item replacing sweets jumper lead to smorgasbord magnitude sales. Technological Constantly improving engine room in chocolate reservation leads to better tasting products as well as much snug storage. Opportunity. Strength. Cadbury has the financial cogency to invest in R&D and has already produced products that are better suited to Indian predilections and storage conditions that other conflicting entrants into the industry are non til now as well adapted to. rude(a) factors.Climate for Cocoa Production Cocoa, utilize to produce chocolates can moreover be grown in regions 15 degrees to the sum or south of the equator. Cocoa, originally a crop native to the Amazon basin, can precisely be grown in the southerly states of Kerala, Tamil Nadu, Andhra Pradesh and Karnataka. It is non a commonly grown crop. Threat. Lack or scarcity of domestic umber breakrs can affect production costs of chocolates within the agricultural. Strength. Cadbury has encouraged farmers in Kerala to produce coffee since the 1970s and is now in the process of promoting Cocoa as an inter-crop plant for coconut growing farmers.Successful pursuance of this touch with the farmers would booster Cadbury procure raw sensible at disdain prices within the body politic. Consumer mien Age com plaza 66% of the world is below the age of 35. Opportunity. It implies that a commodious part of the population can be encouraged to take up wasting disease of chocolates more frequently and will be met with less(prenominal) resistance than that put up by older consumers with already apparel eating ha flecks. Strength. 4 Competition tralatitious Sweets Very widely ready(prenominal) and traditional choice, that inconsistent in salubriouss levels and sample. Threat .Build on chassis of chocolates universe a better and more hygienic choice, which adheres to food safety standards set out by the Govt. Build on project that chocolates are a more sophisticated choice for gifting carrying greater meaning than mithai from vicinity sweet shops. Strength. Confectionary items identical candies, cakes and icecream Candies are soft addressable and appeal to children who arrive at traditionally been the target consumers for chocolates. Threat. Cadbury can emphasize more wholesomely that chocolates are non meant only for children exactly for braggys as well who whitethorn non prefer to eat candies.Cadbury chocolate can be offered as an experience, that is non replicated by eating candies and conectionary items. Strength. Entry of several outside(prenominal) players As India is seen to make believe a rapidly growing chocolate consume country, with battalion unforced to spend non only on inexpensive itsy-bitsyer packs of chocolates, jus t now too bounteousness chocolates as well, abroad players get started foraying into the market with the want of establishing a presence in the tribute welkin at least. Threat.Cadbury can change magnitude its foothold in the premium sector of chocolate industry by establish and promoting premium chocolate targets with higher umber content which could be priced a bit spurn than the foreign dishonors. In fact, Cadbury is already in the process of implementing such a strategy finished the introduction of Bournville and Toblerone. Strength. Suppliers world(prenominal) meshwork Half of the cocoa origind for chocolate making by Cadbury is from sources just slightly the globe, including countries same Ghana, for its famous punctuate Bournville.Opportunity. Cadbury can source the bulk of its cocoa from farmers in India done contract farming, bit importing from foreign countries specifically for certain discolorations only. This will servicing reduce loss delinquen t to worldwide fluctuations in cocoa bean prices and withal reduce transport or expeditiousness costs. It will confusablely help puddle an correct more positive image in the eyes of the Indian population. Strength. principal network Cadbury has CSR activities directed at the farmers who are producing cocoa on contract for Cadbury in the state of Kerala.Opportunity. Cadbury is now in the process of extending these activities to farmers in 3 more southern Indian states. This will help cement positive relations among the cocoa growers and the tarnish, which may put it at an wages when compared to new foreign entrants in the country akin Ferrero or Mars, Inc. Strength. 5 announce environment Use of role sit just abouts trustworthy role models in the media, when employ as Brand Ambassadors, give a lots needed push to the further acceptance of a product. Opportunity.Cadbury has been able to utilize this by roping in celebrities standardized Amitabh Bachchan, olibanum emphasizing the idea that even handsomes can throw off chocolates, since even a someone of Amitabh Bachchans stature has not shied away(p) from having them. Cadbury to a fault has the financial power to rope in more high profile celebrities for the same. Strength. Availability of media and ad agencies Several media conduct exchangeable TV, Radio, newspapers are available for Cadbury to boost on. Opportunity. Cadbury has been advertising its chocolates heavily by means ofout, to confine the brand on top of the mind recall.thither have been innumerable ads by Cadbury that have colossal stayed on peoples minds and even evoked nostalgia, indicating a deep connect of the brand with the audience. Strength. section Cadbury part the consumer found on age. Till the 1980s, chocolates were seen as a luxury item which were eaten only on special occasions or utilise to reward children with. Despite being the market leader already at this time, Cadbury decided to reshuffle their m arketing strategy and military position chocolates as a insect bite and an e trulyday item of consumption kind of than a special treat.In pronounce to do this, the first step was to element the consumers. Geographic or occupation base componentation would have proven less relevant in helping testify revenues generated from chocolate sales. The air division was do on the basis of age. The existing department of choice for Cadbury had been children up to the age of 14 who had been driveway the consumption of chocolates until the 90s. The other segment that the consumers could be concourseed into was the adult population. Targeting The decision do to target a segment is based on gauging the segment ripiveness of the segment.During the 90s, with a rise in the population of the 15-35 year olds, combined with a surge in income and spending power due to the coincident opening up of the economy, made the adult segment an engaging one and since and then, it has been targete d by Cadbury. Being the market leader already, reverse to this target consumer group was not a difficult move for them, in terms of channel attractiveness of the segment. The existing channel which attend tod the consumers until the 90s, such as kirana stores, need no resource intensive special adaptations to serve the spring chicken consumer group as well. on base this, war-ridden attractiveness of the youth segment was as well as high since no other chocolate company had targeted this consumer group so far. Although this meant 6 Cadbury needed to put in extra marketing effort to change the well-disposed acceptance of chocolates in this group, it also translated into a first mover advantage for them. arrangement Positioning is the decision of how the brand wants to be sensed as by the target consumer group vis-a-vis competitors.Cadbury has positioned itself to leave to specific require and attributes that the target consumer group looks for. Cadburys objective was to en gage the customers of the adult age group. In the early 90s, Cadbury had the leading share 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 w consequently increasing per capita consumption within the children consumer 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 by dint of the means of extensive and in turn big ad campaigns which eventually let down the attitudinal barrier that existed. Cadbury had wanted to and has triple-crownly move from the perception of chocolate being a childrens product to a celebratory/gifting product, and more recently an indulgence product (For instance Cadbury Silk).In 1992, Cadbury launched a series of aggressive ad campaigns starting with touchable Taste of lifetime which showcased adults eating the chocolates on their own and not in a parent role or acquire it as a reward or a way to say bad 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 bit to satisfy starve, which was a marked good luck from the earlier perception of chocolates.Later, to promote Cadbury chocolates as an alternative to traditional desserts, the kuch meetha ho jaaye campaign sought 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, worry Celebrations specially for Raksha Bandhan and Diwali, Cadbury has come a long way from the Real Taste of Life campaign, and In dianized itself in order to entrench itself within the minds of the adult population in India. trade Mix 4 Ps Product/Service Product on that point are four slips of products by Cadbury India, and this report is focussed on the Chocolates category. These aim to satisfy the hunger need as well as relaxation and convenience need ( comfortably available snacking option). In order to satisfy these needs, the 7 product is available very easily, at least in the urban markets and in versatile sizes. Cadbury chocolates are branded so as to represent some ruttish core encourages wish family values, and unitedlyness, but at the same time, they are also branded as a fresh, satisfying, convenient product. key Cadbury has 6 company-owned manufacturing facilities 1. 2. 3. 4. 5. 6. Thane Induri (Pune) Malanpur (Gwalior) Bangalore Baddi (Himachal Pradesh) Hyderabad at that place are 4 sales berths, one each in New Delhi, Mumbai, Kolkata and Chennai. The corporate office is in Mumbai. In t erms of scattering, 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. hurt The generally effected price period of time for chocolates in India is Rs 5 and Cadbury has 4 products at this 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 double differently sized packs on a range of prices, going up to higher, premium priced products as well such as Bournville. In this way, Cadbury has a hold on dissimilar price points available to conglomerate groups of consumers based on their appetite for spending. publicity Cadbury promotes its products through various media channels. It uses primary(prenominal)ly tv ads with firmly featured taglines that get joind with the prod ucts easily. There is some 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. theme level competitors like Amul have been ineffectual to match up to the scale of packagings undertaken by Cadbury.Regional players hardly kick upstairs on a big scale through campaigns. However, its MNC competitor Nestle has its own packagingal 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 manifestation the threat of losing a significant amount of its existing customers, for instance, those who defile Dairy Milk or Perk, thither is a orifice of losing out on potential customers who are interested in premium chocolates.Since this is a rapidly growing industry, and being the establish ed market leader, Cadbury should focus on its premium chocolate brands in a big way through more perceptible ad campaigns and promote their products based on the brand equity they have facultyened through the years. 2. While leveraging the dishonor cost of Cadbury premium chocolates vis-a-vis foreign chocolates, Cadbury essential take care to reassure it does not go the Tata Nano way, as lower prices in the premium segment may be perceived as lower quality in the product delivered 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 initiate 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 wellness reasons. 4. Cadbury can now change the office of certain specific products or interject new products to cater to instant efficacy giving needs similar to Ma rs bars abroad. 5. Recently, a 20-calorie chocolate has been actual 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 unambiguous edge over competitors and help tumble into a new markets and increase their consumer width. 9 NATIONAL BRAND 10 Introduction Amul is an Indian dairy Co-operative based out of Anand in Gujarat. The co-operative started off as the Kaira partition Co-operative Milk Producers Union in celestial latitude 1946. The Co-operative was set up by the take out producers of the Kaira govern of Gujarat who snarl cheated by the unsportsmanlike trade practices.The co-operative collected processed and marketed milk and was co-owned by the milk 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 create highly succe ssful 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 market partnership 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 organisation 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 turnover is around Rs. 140. 0 billion. Amul started producing and marketing chocolates in 1970. It soon markets 6 different chocolate brands namely Congtas, Fundoo, Chocozo, Bindaaz, Rejoice, sweet almond Bar, Fruits and clod and Amul readying 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 real (milk) security Major raw materials for the production of chocolates are Cocoa, milk and sugar. Milk bring is secured for the company which protects it from any volatility in prices. High brand awareness Amul through its concerted marketing over the furthest 5 decades has created a brand that is corresponding with good quality.The brand has also become a symbol of successful Indian entrepreneurship that has positively impacted the lives of millions of small farmers, hence there is a sense of patriotism and pride associated with the brand as well. inviolate distribution network Amul has been marketing and supply milk through a pan India distribution network which supplies milk and milk products to independent retailers but also to its own milk parlours. 11 Weakness ? ? ? mortified market share Amul chocolates have a low market share in the Indian chocolate industry. The bran d, though having a strong recall value, is not principally 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 structure of Amul due(p) to the Co-operative constitution of GCMMF, there is restrict bang-up infusion in the company. As a result there is a limited reaching for aggressive product launches or diversification. Volatility in Cocoa prices remote the major 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 soul in 2005 to around 110 gm per individual currently. Though this is impressive growth in itse lf 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. same Strength Since Amul has a strong Brand awareness, people would be willing to buy new products launched under its brand name. Amul can launcha concoction 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 aggressively bare this. tally Strength Since, Amul is a strong brand name and has a strong distribution network, It can very well advertise the gift packs like wallow and can introduce new brands supply to the same need. ? A dvertising Amul need to advertise and carry out lot of promotional activities to declare 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 video recording channels.Sales promotions like tax deductions and free samples can also help them to increase the Brand awareness and attract customers to switch brand from competitors. Big brands use a celebrity as a Brand Ambassador for its product. 12 For poser 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 helping of revenue on advertising campaigns Amul can increase its market share to a large extent. ? number 1 rural sharpness of chocola tes 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 products 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. Also 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 Cadbur ys which is a very aggressive player in the chocolate industry.Amul faces tough competition and to detention the same it needs enormous marketing and advertising campaign and introduction of new chocolate products under its brand name. ? Low brand truth in chocolate industry Chocolates are impulse purchases and argue with categories of soft drinks, snacks and other beverages. Although people may like a particular type of chocolate (dark, milk, white, and so forth ) there is not a significant brand loyalty. thusly this presents a threat to established players in the market.Corresponding Weakness Since Amul has significantly low popularity in chocolate industry and also people are picky while selecting a chocolate, there is not a single 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 necessarily incline towards a single chocolate product. Since, Amul does not offer a large va riety of chocolates therefore it is at a weaker 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 golf-club which reside 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 segmented its consumers into various age groups like the children, adolescent and youth segments of the society.Since, chocolates are particularly liked by children and middle aged and older generations give over from eating it citing health concerns due to high sugar content of chocolates. Targeting The brands of Amul chocolates like Fundooz, Bindaaz, Congrats and so on have been na med to be attractive to the young generation who use these words in their daily lexicon. There has been a strategy by the company to provide a young, dynamic and fun loving display case 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 brand wants to be perceived as by the target consumer group vis-a-vis competitors. Amul has positioned itself as an cheap, 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 create its product to actually cater to an aroused need. It is simply a chocolate available at a lower price. Marketing MixProduct Amul has a very low range of products in its chocolate busin ess. 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 glass and Amul Cooking Chocolate. The problem is that there is no clear distinction surrounded by the products that it offers. For example Cadburys is catering to a different need corresponding to its individual Chocolate product. ? ? ? ? ? Product Dairy Milk 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 indoors However, Amul completely 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. other classic factor is packaging because majority of the consumers is kids and youngsters who like attractive packaging. Most kids buy chocolat es not just because they like chocolates but also because of the attractive wrappers.Packaging used by Amul stands low on appearance 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 colour 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 determine Second P of marketing that is Price is often confused with blindly lowering the prices of different products and completely relying on this strategy to increase sales. However it is of intense importance to divide the target group on the basis of their price predisposition and purchase power. Every customer segment has different price expectation from the product. To maximise 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 heavy competition in the chocolate market, Price plays a very important role. Amul pricing strategy has been Value for silver. 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 manufacturing business to the consumers. The channels of distribution mean intermediaries or middlemen who act as a conjoin between the manufacturer and the consumers.Factors that need to be considered when choosing the place are the characteristics of the product, characteristics 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 obtain 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 buy prats 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 utilize various distribution channels. 16 furtherance Promotion refers to exchange of information between an organization and the consumer of its products. Consumers here include Customers, shareholders, employees, regime and other parties related to the products like trade union and media.The aim of promotion is to inform the consumers, differentiate from other products and to persuade them to buy. There are many techniques of promotion like Advertising, Sales promotions, Direct Marketing & ain 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 t otally 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 alterd 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, Chocolates with fruits and awry(p) like Cadbury has its Fruit and Nuts, Mint chocolates like Nestles After 8 etc.