PROJECT

A
 PROJECT FINAL REPORT

ON

Competitive analysis Of
Chocolate industry

By
JYOTI PRAKASH BHADRA
PGDM

AT

Summer Internship Project

PROJECT TITLE
COMPETITIVE ANALYSIS OF CHOCOLATE
INDUSTRY WITH SPECIAL REFERENCE OF
LOTTE india corporation ltd.
 A project report
on

Company Guide
Faculty Guide
Mr.Sandip Das Prof. Neeraj
Saxcena
Area Sales Manager &
Lotte india corporation ltd Prof.G.K. Sinha
GLBIMR

Prepared by:
JYOTI PRAKASH BHADRA
G L BAJAJ
INSTITUTE OF MANAGEMENT AND
RESEARCH.
GREATER NOIDA.
 ACKNOWLEDGEMENT

If words are consider to be signs of gratitude then let

these words convey the very same my sincere gratitude
to LOTTE INDIA CORPORATION LTD.for providing me with
an opportunity to do summer training, and giving
necessary directions on dong this project to the best of
my ability.
I would like to thank G L
BAJAJ INSTITUTE OF MANAGEMENT AND RESEARCH and
Dr J.K. SHARMA, the director of GLBIMR for providing me
the opportunity to work with LOTTE INDIA CORPORATION
LTD. And allowing me to take up this project.
I would like to thank to mention my special
gratitude to Mr.Padmanav Parida, & Mr.Subhendu
Mohanty; my reporting officer for the much needed help
and guidance during the field survey period, I would also
like to thank Mr. Sandip Das,the AREA MANAGER of
LOTTE INDIA CORPORATION LTD. For the invaluable
support during my training period.

I would like to thank my

faculty guide Prof.Neeraj Saxcena ,faculty of GLBIMR
whose guidance and support provided useful insights and
helped to undertake this study in an objective manner.
 Certificate

This is to certify that this report entitled “competitive

analysis of chocolate
Industry with special reference of Lotte India corporation
ltd.submitted by
JYOTI PRAKASH BHADRA is a bonafire research work
carried out by him under my supervision and guidance.
He has successfully completed his training program. No
part of this report has been submitted else where for any
other degree or published in any other form. Any help on
source of information availed during the course of
investigation has been acknowledged. Wish him all
success in life.

Mr. SANDIP DAS

 ASM IN LOTTE INDIA
CORPORATION LTD.
CUTTA
CK

Declaration

I sri jyoti prakash bhadra a student of G L BAJAJ

INSTITUTE OF MANAGEMENT AND RESEARCH do here by
declare that the project “COMPETITIVE ANALYSIS OF
CHOCOLATE INDUSTRY WITH SPECIAL REFERENCE OF
LOTTE” is the project of my own knowledge and effort. No
part of this report has been submitted to any one at time
before. It is presented before the partial fulfillment of
PGDM/2008-2010.

Dt-
jyoti prakash bhadra

EXECUTIVE SUMMARY

I did my summer project in lotte india corporation ltd, Orissa.an attempt was made to study on
competitive analysis of confectionary industry. The data was collected from two city,i.e.
Bhubaneswar and Cuttack.

In my two months summer training I got field experience like interacting with different trade
person in these two cites and to know about the market share of the company in the
confectionary market, how our company tackles with its competitor.

After the summer project I feel very energetic and enthusiastic as every part of it is filled with
experience and learning. My summer internship project has increased my confidence levels and
understands how professional life is to be maintained. An important lesson learnt is how to deal
with the customer and convince them.

My visit to different areas made me to develop my contacts and know about different types of
customer, understand the market conditions
& other skills developed by me are convincing customers through different modes.

My summer project in Lotte India high lighted that if a person in order to be successful should
carry the ability to learn new things with the changing environment and this was inspired by the
company in which I completed my summer project.
Objectives:-
The objective of the study was to understand different market share and different market strategy
taken by the different confectionary company in the competitive market.

Scope of the study and limitation:-

The study area includes 2 cities identified as per the hydrological boundary i.e. Bhubaneswar
and cuttack.and the lack of time period,i.e. the shops are closed after 12 o’ clock and reopened at
5 o’ clock, so there is no much time to visit more and more retail counter.

METHODOLOGY:-
To accomplish this project successfully, data is collected from different sources, like market
survey and from different confectionary distributers,and also from different confectionary
company’s sales officer.

Table of Contents
Table of Contents.........................................................................................................................viii
their Commitment......................................................................................................................14

Table of Figures
List of Tables
 INTRODUCTION:-

CHAPTER-1
1.1 A BRIEF HISTORY OF CHOCOLATE:-

Confectionery history has a record of at least 4000 years, When Egyptians displayed their pleasures on
papyrus. Sweetmeats were being sold in the market place in 1566 BC.Yet chocolate did not appear on the
scene until the ancient Aztec and Mayan cultures discovered the value of cacao plant. It is reputed to
have originated in the Amazon or Orinoco basin.

Mayans and Aztecs took beans from the “cacao” tree and made a drink they called
“xocoatl”.Aztec Indian legend held that cacao seeds had been brought from paradise and that wisdom
and power came from eating the fruit of the cacao tree.

The word chocolate is said to derive from the Mayan “xocoatl”;cocoa from the
Aztec “cacahuatl”.The Mexican Indian word “chocolate “comes from a combination of the terms Chocó
(foam) and atl (water);early chocolate was only consumed in the beverage form. As part of a ritual in
twelfth-century Mesoamerican marriages, a mug of the frothy chocolate was shared.

Chocolate was first noted in 1519 when Spanish explorer Hernando Cortez visited the court of
Emploror Montezuma of Mexico. Prince Albert’s explosition in 1851 in London was the first time the
united states was introduced to bonbons, chocolate creams, hand candies i.e. called “boiled sweets” and
caramels. Daniel Peter of Vevey, Switzerland, experimented for eight years before finally inventing a
means of making milk chocolate for eating in 1876.he brought his creation to a Swiss firm that today is
the world’s largest producer of chocolate: Nestle.

Chocolate is created from the cocoa bean. A cacao tree with fruits pods in various stages of ripening.
Chocolate comprises a number of raw and processed food produced from the seed of the tropical cacao
tree. The seeds of the cacao tree have an intense bitter taste and must be fermented to develop the
favour.chocolate contains alkaloids such as the bromine and phenethylamine,which have physiological

10
effects on the body. Dark chocolate has recently been promoted for its health benefits, including a
substantial amount of antioxidants that reduce the formation of free radicals.

Chocolate has become one of the most popular flavors in the world. Gifts of chocolate molded into
different shapes have become traditional on certain holidays: chocolate bunnies and eggs are popular on
easter.chocolate coins on Hanukkah, Santaclaus and other holiday symbols on Christmas, valentine’s
day, independence day, republic day, marriage party, marriage aniversery.chocolate is also used in cold
and hot beverages to produce chocolate milk and hot chocolate.

Chocolate market in India :

The size of the chocolate market in India is about 4000 tones and is valued at rupees 6500
million.cadbury india has the biggest share at 40 percent while nestle is the second largest at 20 percent.

Now a days many multinational chocolate companies are interested for business expansion in india,just
like lotte,Wrigley,perfetti etc.we will discuss about them very briefly in following lines:-

1.2 LOTTE:-

At the heart of the corporate purpose, which guides us in or approach to doing business, is the drive to
serve consumers in a unique and effective way.”

It is a story born in the age of British raj. When children in India found confectionary hard to come by. It
had to be imported from across the seas until the year 1914,when parry’s picked up the gauntlet and
pioneered the manufacture of sweets- the first to do so in the country .parry’s sweets went on to become
a household name –a name that people recollect with warmth and a smile. ever since, the parry’s factory
was set up in Nelikuppam,in the cuddalore District of Tamilnadu in South India. parry’s has become
synonymous with sweets and confectionary .with the penchant we Indians have for sweets is not
surprising that this smooth ,milky and irresistibly delicious confectionary is the best gift any child could
get. and an obsession with quality ensured that children had a choice of nothing but the best in
confectionary.

In the nine decades since, the scenario has undergone a dramatic charge. There are a number of
offering in the market today, each wooing children, changing, adapting and growing with the times – but
never losing sight of its values traditions and ethics. At the turn of this century, parry’s is poised on the
threshold of greater challenges in a global village, where dynamism and innovation is the very law of
survival.

11
 In the backdrop of India joining the WTO,and the global giants eyeing the Indian market with
enthusiasm,the company needed to strengthen it self and broaden its base to delight customers across the
country and abroad. With this vision in the mind,Murugappa group, promoters of parry’s confectionary
limited ,south korea,by which the entire shares which Murugappa group, the founders of parry’s
confectionary limited –a south Korean multinational giant .

Lotte confectionary is the first company of the lotte family of companies founded by Mr. Shin Kyuk-
ho.the three L’s in the Lotte Emblem stand for Love, Liberty and Life. The corporate philosophy and
idealism of lotte is driven by dream of world full of love win here people care for each other and respect
each other’s thoughts. The lotte group has presence in food and beverages, distribution, tourism and
leisure business ;heavy chemicals ,construction and machinery ;information ,communication and
electronics ,trading and services apart from welfare research and support services. The lotte
confectionary co.ltd. is the lotte group’s flagship company in foods and beverages category.lotte
confectionary,korea ,was established with 500 employes in 1967 and today it has more than 6000
employees. It has over 500 products produced at 5 large-scale plants in korea.lotte has been actively
working towards establishment of overseas branches ,production facilities and has a presence in more
than 70 countries .lotte confectionary’annual sales are over than USD 900 millions apart from korea
,lotte has overseas investments in production facilities in China ,Philippines ,and Vietnam.lotte
confectionary’ main line products are (chewing gum(lotte xylitol,lotte juicy & fresh,lotte spearmint,lotte
fresh mint,flavono,white & E,spout case coffe),candy,biscuits,chocolates,snacks,ice cream and health
care products. If the decades past are any indication ,there is little doubt that even in the coming
century ,children grow up with the brands parry’s has established .The catalog of lotte’s product are
given below:-

12
Then we will discuss about another MNC company i.e. WRIGLEY.

13
1.3 WRIGLEY:-

Wm. Wrigley Jr. Company is a recognized leader in confections with a wide range of product offerings
including gum, mints, hard and chewy candies, lollipops, and chocolate. The company has operations in
more than 40 countries and distributes its world-famous brands in more than 180 countries. Wrigley is
headquartered in Chicago, Ill., and operates as a subsidiary of Mars, Incorporated, a private, family-
owned company founded in 1911. Mars, Incorporated is one of the world's largest food companies,
generating global revenues of $30 billion annually and producing some of the world's leading brands in
six segments that include Chocolate, Drinks, Food, Petcare, Symbioscience and Wrigley

their Commitment

We are committed to preserving the heritage and values of the Wrigley Company. That doesn't mean we
don't change, adapt and innovate as time goes forward. It means that our values and our culture of caring
for our people and treating each other with trust, dignity and respect - or the ‘soul’ of our company must
be nurtured. We also need to nurture the communities in which we work, and nurture our environment
and broader, global community. The main brand of Wrigley is boomer, and its catalog is given below.

1.4 THEN ABOUT PERFETTI:-

Perfetti van melle India subsidiary of the global conglomerate started operation in 1994.a confectionary
market with more than ¼ th of the value share of the market, takes care of the development of the south
Asians markets and exports to the other Asians countries, with a basket of 13 main brands, the company
strives to leverage the international brand portfolio, while adopting flavors and blends to the local tastes,
centre fresh was the first brand offering ,followed by big babol,and alpenliebe in 1995.

Perfetti van malle India has doubled its turn over and is today the undisputed market leader in the Indian
confectionary market.perfetti van malle exploded onto the Indian market way back in 1994 with a single
brand ,centre fresh. When the gums category of confectionary stood at 40 crores.in last 10 years, we have

14
traveled from having a single brand to having 14 brands today. It has the largest distribution network
among any confectionary company in India.

Their vision:-

it will enhance its world leadership in confectionary by creating value for people through delightful and
imaginative high quality products.

Their mission:-

To develop, manufacture and market high quality and innovative products for their consumers through
efficient use of their resources and in partnership with their customers. And to create a fulfilling
workplace for their employees built on trust ,mutual respect and appreciation of their diversity.

1.5 ITC:-
ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 14
billion and a turnover of over US $ 5 billion.* ITC is rated among the World's Best Big Companies,
Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most
Respected Companies by Business World and among India's Most Valuable Companies by Business
Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand
Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing
companies compiled by Business Week.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-
Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care,
Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its
traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly
gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded
Apparel, Personal Care and Stationery.

As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly
nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the
market". In his own words: "ITC believes that its aspiration to create enduring value for the nation
provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not
only driving each of its businesses towards international competitiveness but by also consciously
contributing to enhancing the competitiveness of the larger value chain of which it is a part."

ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth
anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building
capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over
time, the strategic forays into new businesses are expected to garner a significant share of these emerging
high-growth markets in India.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the
country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-
Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by
15
empowering Indian farmers through the power of the Internet. This transformational strategy, which has
already become the subject matter of a case study at Harvard Business School, is expected to
progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the
Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is aggressively
pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services and
business process outsourcing.

ITC's production facilities and hotels have won numerous national and international awards for quality,
productivity, safety and environment management systems. ITC was the first company in India to
voluntarily seek a corporate governance rating.

ITC employs over 25,000 people at more than 60 locations across India. The Company continuously
endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently
reward more than 3,60,000 shareholders, fulfill the aspirations of its stakeholders and meet societal
expectations. This over-arching vision of the company is expressively captured in its corporate
positioning statement: "Enduring Value. For the nation. For the Shareholder."

THEIR VISION:-

Sustain ITC’s position as one of India’s most valuable corporation through one class performance,
creating growing value for the Indian economy and the company’s stakeholders.

THEIR MISSION:-

To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering
superior and sustainable stock holder value.

1.6 NUTRINE:-
Nutrine Confectionary Company was founded in 1952 by Shri. B. Venkatarama Reddy, a Graduate
from National University Adyar. The Chancellor of this University then was Shri. Rabindranath Tagore,
a Noble laureate. From a small scale unit, manufacturing only candies in the early 60's Nutrine
Confectionary Company has grown to be a multi product, multi market giant and has been the single
largest manufacturer of confectionary and toffees in India since 1980.
Nutrine has been the leader in Confectionary Industry in India for more than a decade, with an
unequalled range of 40 exciting products in Confectionary, which includes Aasay, Maha Lacto,

16
Kokanaka, Honeyfab, Nutrine Eclairs. With its dynamic and committed approach towards product
innovation and quality, Nutrine has set the trend in the Indian Confectionary Industry.

The Nutrine Group of Companies turnover is over 200 crores. The strength of Nutrine lies in its strong
Research & Development team, high standard of quality control, adoptation of state-of-the-art
technology and processes.
Nutrine produces its confectionary with a main factory at Chittoor and with conversion
arrangement in different strategic places. Nutrine enjoys high market share among the organized
sector in India. In order to consolidate its position as leaders in Confectionary business, Nutrine had
modernized and upgraded the plant capacity with the state-of-the-art technology.

Nutrine has well equipped Research and Development Laboratory, where continuous product testing and
product development is organized and also it keeps on developing, depending on consumers taste &
preference.

In spite of severe competition from various other players in the industry like, Lotte, Nestle, Ravalgaon,
Parle etc. and in terms of unorganized sector’s products & spurious products in the market. Nutrine
continues to hold its leadership and it strongly believes in the social responsibility to give out the best
product to the children of India and also involves into lot of activities related to children through schools
for betterment and shaping.

Then the products of nutrine are given below:-

Mahalacto is the brand name of Nutrine India Ltd.

17
Before we distinguish in between two or more companies at first we have to concentrate on these things :
1.7 .We have to see how the margin percentage taken by distributers of lotte is high or other company’s
mode of payment of lotte in comparison to other companies. service quality given by every company and
many other things are taken to compare, these are given below.
And lastly we distinguish in between lotte and its competitor .
Table-1

Lotte Wrigley perfetti Itc nutrine rema

India rks
Margin 6% 5% 5% 3% 4%
percentag
e taken by
distributer
Mode of Check, Check,cash,d Check,cash,d Check, cash, Check,cash,d
payment deman emand draft, emand draft, Demand draft, emand draft,
d draft, also credit also credit also credit also credit
also
credit
Preorder yes Yes Yes Yes Yes
facilities
available
here or
not
Service satisfac Satisfactory Satisfactory Satisfactory Satisfactory
quality tory
given by
company
is
satisfactor
y or not
Sales man By the It depends By the By the By the
is given compa upon the company company company
by the ny coverage or
company And volume of the
or by the person distributer
distributor al ,both
s
How many Averag 3500+incenti 3500+incenti 2500+fuel+in 2500
salary e 2000 ves+gift ve+fuel centives +incentives
gives the
company
to the
sales man

Sales Daily Daily wise daily wise Daily wise Weekly wise
report wise
daily wise
or weekly

18
wise
Any Yes Yes yes Yes yes
communic
ation in
between
distributer
and
higher
executive
s
Top level Yes Yes yes Yes yes
managem
ent
associated
with low
level
managem
ent or not

Company Mostly Here frequently Regularly Regularly

gives any no but frequently the
offer to some company
distributer time it gives
s and also gives
to scheme
retailer ?
how often
If any yes Yes yes Yes yes
employee
do good
job ,is
there any
award for
him or not

CHAPTER -2

CHANNEL:-
Manufactures normally use intermediaries for talking their products to the users. The intermediaries bear
a variety of names. All such intermediaries constitute the marketing channel. the manufacturer’s branch
offices,depots,warehouses and showrooms too form a part of the marketing channel. Where institutional
channels like chain stores, super markets,etc.are used by the firm ,they too form part of the marketing
channel .where institutional channels like chain stores ,super markets,etc. are used by the firm, they too
form part of the marketing channel of the firm.
Channels play a pivotal role in marketing; they perform a number of vital distribution functions. their
importance emirates form the functions performed by them.
Firms rely on the marketing channels for generating customer’s satisfaction and for
achieving differentiation over competitors. Channels are thus a vital source of competitive advantages for
the firm.
Type of marketing intermediaries:-

19
 • Sole-selling agent
• Marketer
• C&F agents (CFAs)
• Redistribution stockiest
• Stockiest/distributor/whole seller
• Semi-whole seller
• Retailer/dealer
• Franchisees
• Authorized representatives
• Commission agents
• Jobbers

We will discuss about the channel taken by these companies, how they distributes their products in the
market, mainly these channels are taken by every companies, they are given below;
CFA, SUPERSTOCKISTS, STOCKISTS
And theirs def.

CFA:-
Manufacturers employ carrying and forwarding agents ,often referred to as C&F agents, or CFAs.the
CFA can be described as special category wholesalers. They supply stocks on behalf of the manufacturer
to the whole sale sector. their function of distribution. Their distinguishing characteristic is that they do
not resell products but act as the agent /representative of the manufacturer. They act on behalf of the
manufacturer and his extended arm .so they are manufacturer’s branch.

STOCKISTS:-
A whole seller or stockiest or distributer is also a large operator but not on a level comparable with a
marketer or sole selling agent, in size resources and territory of operation ,the wholesaler
/stockiest/distributers operates under the market sole sailing agent ,where such an arrangement is used by
the manufacturer.

2.1 LOTTE-
In coverage Lotte being covered not all over Orissa, it covers seventy percent of total state. the company
target to cover the total state very soon. in stead of all these company is on growing stage. Total sale is
comparatively appreciative.

CFA:-
LOTTE has only and one CFA who supplies to all the super stockiest and stockiest located in main
cities.

SUPER:-
Lotte has 10 number of super stockiest who are supplying stocks to the distributers for the rest area.

DISTRIBUTERS/STOCKISTS:-

20
LOTTE has 35 numbers of direct distributers and 86 numbers of sub distributers by the help of this,
LOTTE can distributes its products very easily in all over the covered area. And it has 6 modern trade ,by
which it reach at the customer.

2.2 WRIGLEY:-
In coverage Wrigley being covered in 85 percent area in whole Orissa., the company has not a expected
sale growth but it is in saturation stage.

CFA-
Wrigley has only and one CFA who supplies to all the super stockiest and stockiest located in main
cities.
SUPER-
Wrigley has 4 super stockiest who supplying stocks to the distributers for the rest area.

DISTRIBUTERS/STOCKISTS:-
WRIGGLEY has 56 numbers of direct distributers and 222 numbers of sub distributors by the help of
this,
Wrigley can distributes its products very easily in all over Orissa.

2.3 PERFETTI:-
It covers in all corner of the state even if you will not get one single area where its products is not
available. It is the company which has full 100 percent area coverage in whole Orissa.

CFA:-
Perfetti has two CFA in all over Orissa by which perfetti can distributes his products in whole state very
easily.

SUPER STOCKIST:-

Perfetti has main 10 super stockiest in all over the state by which the products are easily distributes to the
distributers.
DISTRIBUTERS/STOCKISTS:-

Perfetti has 100 distributers and 222 subdistributers in whole state.

2.4 ITC:-
This company which is basically sailing cigarette, in chocolate it has not a variable range of product. It
has 4 to 5 chocolate range but it covers more than 70 percent across the state.

CFA:-

21
ITC has one CFA in all over the Orissa which helps to ITC to distributes its product in the market.

SUPER STOCKISTS:-
ITC has main 12 super stockiest in all over the state by which it reach at the retailer and also customer.

DISTRIBUTERS/STOCKISTS:-
ITC has more than 85 distributers and 150 sub-distributers in whole state by which it reach at the
customers.

2.5 NUTRINE
Formerly this company was Nutrine India ltd.Now it is take over by Goodrej harssey ltd.It has a good
range of products but it is very poor in distribution. by the way it is covering 50 percent across the state.

CFA:-
NUTRINE has only one CFA in all over Orissa by which it distributes its products to the distributers and
also to retailers.

SUPER STOCKISTS:-
NUTRINE has main 8 super stockiest in all over the state.

DISTRIBUTERS/STOCKISTS:-
NUTRINE has more than 50 distributers and 80 subdistributers in all over the states by which it reach at
the customer.

2.6 This is the graph by which we can easily know that the reach of the different companies in the
whole Orissa market.

22
Table-2:-the area covered by these companies in whole Orissa in percentage.

Company percentage
LOTTE 70%
PERFETTY 100%
WRIGLEY 85%
ITC 70%
NUTRINE 50%

Figure-1 Reach of the different companies in whole Orissa in percentage

23
CHAPTER -3
AVAILABILITY:-
Put the product in every retail outlets is not a easy task. But some companies are much more positive to
fulfill this objective. Those who are satisfying this objective they have large market share in
confectionary industry. So availability shows the company’s strength, and awareness and its brand
equity.

3.1 LOTTE:-
When we will discuss about availability lotte is on growth stage. Day by day awareness of people
increasing and we are able to see lotte products in many retail outlates.we will take 4 products to analyze
the availability of lotte.they are coffee bite, boopro, fruitz.lacto king.
Table-3:- availability of different chocolates of Lotte in the market

Chocolates Availability
in
percentage
Coffe-bite 47%

Lacto king 17%

boopro 27%

fruitz 20%

24
Figure 2:- availability of different products of Lotte

3.2PERFETTY:-
This is the only company who has 100 percent availability in the market. Even if a single retail outlet has
one jar of confectionary and that jar is from perfetti. and that must aware brand is chloromint.for this
purpose it has 100 percentage customer awareness. We will take 3 products to analyze the availability of
perfetti ,they are big babool,chloromint,alpenlibe.

Table 4:- availability of different chocolates of Perfetti

chocolates Available in
percentage

bigbabol 24%

chloromint 71%

alpenliebe 25%

25
Figure 3:- availability of different products of perfetti

3.3 WRIGLEY:-
Even if the company has a strong brand likes boomer but it is unable to maintain 100 percent
availability. Customer awareness of boomer is very strong comparing to other brands. The company is
trying to increasing day by day. Then product detail.

Table 5:- Availability of different chocolates of Wrigley

Chocolates of Availability in
Wrigley percentage

Boomer 47%

Solano 5%

26
Fig:-4 availability of different products of Wrigley

3.4 ITC:-
Itc stands for Indian tabaco company. It has strong brand in cigarette but with the help of cigarette brand,
it sells its confectionary item in the market. And it is running in the market with 3 or 4 brands, like
minto-fresh, candyman,éclairs.

Table 6:- Availability of different chocolates of itc

Chocolate of Availability
Itc in percentage

Minto fresh 24%

candyman 39%

27
Figure 5:- availability of different products of Itc…

3.5 NUTRINE:-
Even if the company has a strong brand like mahalacto but it is unable to reach at customer 100 percentage. And it
is running in the market with 2 or 3 products, just like mahalacto,

Table-7 Availability of different chocolates of nutrine

28
 Chocolates Availability
of nutrine in
percentage

Mahalacto 21%

Fig-6:- availability of different products of Nutrine

3.6 Analysis of availability :

In my summer internship I had surveyed 1118 retailoutlates in the twin cities i.e. Bhubaneswar and
Cuttack and my survey was based on competitive analysis on five confectionary companies. In my
survey I conclude that coffe bite is the product of Lotte india which has more availability than other
products of lotte.It has 47% availability in these two confectionary retail market which is the lead brand

29
of lotte india.I had surveyed in these two cities and lastly I concluded that coffe bite is the demand brand
in confectionary market of lotte india.similarly

In case of Perfetti van malle,it has 3 brand products ,just like bigbabol,chloromint,alpenliebe.from
these 3 brand products chloromint is the most demand product of perfetti ltd.it has 71% availability in
these two cities which has the record availability in the confectionary market rather than other demand
product. In my survey period I analyzed chloromint is the only product which has more potential
customers in the market. By the demand of customers the retailoutlates are interested to stock the
particular product., Which is a positive point of perfetti ltd.

In case of Wrigley India pvt ltd it has a reputed and strong brand like boomer which builts the loyalty
customers in between few days in the competition market. in this time other players are strongly
available in the market but its good market strategy builds it high. Its availability is only 47% in these
two cities but the frequency of selling is very high compare with any other brands
.
Similarly Itc has not a good brand with a good frequency of sale. The company putting the
products by the influence of cigarette, any way it has also two reputed brand just like mento-
fresh,candyman.it also builts few potential customer by the help of high marketing strategy just like it has
a punch line of mentofresh i.e. “dimag ki bati jalade”,by the help of this it attracts the customers towards
it. So candyman is the product which has more availability in the two cities i.e. 39%.now the company in
growing stage in confectionary market.

Lastly about Nutrine confectionary pvt ltd.which has few numbers of loyalty customer, it has less
availability in these two confectionary market. And it has a strong brand like mahalacto,but it cant built
loyalty among the customer. It has a low availability in the market.

So different company has different market strategy ,by the help of this they improve them selves in
ascending order day by day. But we have to analyze in between them by the help of their most branded
product which have more availability in these two confectionary markets.

Now the tables of availability of different products of different companies are listed below:

Table:-8 Analysis of main brand products of different companies in twin cities

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 Products of Availability of
different products in
companies percentage in twin
cities
Coffe bite 47%

Chloromint 71%

Boomer 47%

Candyman 39%
Now the graph will be
Nutrine 21%
Figure:-7 analysis of
availability of different
companies brand name

By the help of this we can analyze that chloromint is the brand which has more availability in these two
cities. Now we have to analyze the price of different products of different companies. They are listed
below.

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CHAPTER-4
PRICE:-
Price is the one element of the marketing mix that produces revenue; the other elements produce costs.
Price are perhaps the easiest elements of the marketing program to adjust; product features ,channels and
even promotion take more time. Price also communicates to the market the company’s intended value
positioning of its product or brand. a well-designed and marketed product can command a price premium
and reap big profits.

Traditionally, price has been the major determinant of a buyer’s choice. This is still the case with
large segment of buyers across the globe. Although nonprime factors have become quite important in the
last few decades, price still remains an important factors in determining sales and profitability.

4.1 HOW COMPANIES PRICE:-

Companies do their pricing in a variety of walls. In small companies, price are often set by the boss. in
large companies ,pricing is handled by division and product line managers. Even here ,top management
sets general pricing objectives and policies and often approves the prices proposed by lower levels of
management. In industries where pricing is a key factor. Companies will often establish a pricing
department to set or assist others in determining appropriates prices. This department reports to the
marketing department, finance department or top management.

Executives complain that pricing is a big headache-and one that is getting worse by the day.
Many companies do not handle pricing well. And throw up their hands at “strategy” like this, “we
determine our costs and take our industry’s traditional margins.” price is not varied enough for different
product items, market segments, distribution channels and purchase occasions.

Effectively designing and implementing pricing strategy requires a thorough understanding of consumer
pricing psychology and a systematic approach to setting, adapting, and changing prices. Multinational
face several pricing problems when selling abroad. They must deal with price escation, transfer prices,
dumping charges and grey markets. When companies sell their products, they face a price escalation
problem the company has to add the cost of transportation, tariffs, importer margin, whole seller margin
and retailer margin to its factory price..depending on these added costs as well as the currency –
fluctuation risk, the product might have to sell for two to five times as much in another country to make
the same profit for the manufacturer, because the cost escalation varies from country to country,the
question is how to set the prices in different countries ,then companies have three choice,i.e. set a
uniform price every where, set a market based price in each country, then lastly set a cost based price in
each country.

4.2SELECTING THE PRICING OBJECTIVES:-

The company first decides where it wants to position its market offering. The clearer a firm’s objectives,
the easier it is to set price. A company can pursue any of five major objectives through pricing: survival,
maximum current profit, maximum market skimming or product quality leadership. These five things are
given below:-

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1.Survival:-
companies pursue survival as their major objectives if they are plagued with overcapacity, intense
competition ,or changing consumer wants, as long as prices cover variable costs and some fixed costs
,the company stays in business. Survival is a short –run objectives ;in the long term run, the firm must
learn how to add value or face extinction.

2.Maximum current profit:-

Many companies try to set a price that will maximize current profits. They estimates the demand and
costs associated with alternative prices and choose the price that produces maximum current profit ,cash
flow ,or rate of return on investment .this strategy assumes that the firm has knowledge of its demand and
cost functions; in reality these are difficult to estimates .in emphasizing current performances ,the
company may sacrifice long –run performance by ignoring the effects of other marketing –mix
variables, competitor’s reactions and legal restraints on prices.

3. Maximum market share:-

Some companies want to maximize their market share. They believe that higher sales volume will lead
to lower units costs and higher long run profits. They set the lower prices ,assuming the market is price
sensitive ,
The following conditions favor setting a low price:
(1) The market is highly price sencitives,and a low price stimulates market growth;
(2) Production and distribution costs fall with accumulated production experiences and
(3) A low price discourages actual and potential competition.

4. Maximum market skimming:-

Companies unveiling a new technology favor setting high prices to maximize market skimming.
Market skimming makes sense under the following conditions;
(1) A sufficient member of buyers and have a high current demand.
(2) The unit cost of producing a small volume are not so high that they cancel the advantages of
charging what the traffic will bear.
(3) The high initial price does not attract more competitions to the market.
(4) The high price communication the image of a superior product.

in this way we can concentrate on the pricing of these five company’s price of the each jar and each
case are listed below.i.e. one jar of lotte india.

CHAPTER-5
MRP:-

MRP is the important factor in any industry, because mrp is directly proportional to customer’s mrp
varies according to the financial condition of the people. So the company should produce such type of
product with a reliable mrp which will be affordable by all the types of customers, then if mrp is an
important factor but all companies are not aware of about that. They have not suitable products to
satisfying the need of every customer .here we will analyze about the price of five companies ,in which
affordable mrp they are able to sell the best with good market share. We will put in to comparison the
total sale of the company with mrp variation in percentage.
Then we first concentrate on the mrp of lotte india.

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5.1 LOTTE INDIA:-
Lotte has all the variety of chocolate with different types mrp.Lotte is selling with 0.25,0.50,rs-1/,rs-2/,rs-
5/,rs-10/ mrp chocolate in market but from total sale rs-0.50 mrp chocolate has 40%market share,

Table:-9 Mrp in different range of products of lotte…

Mrp in different range Market share in percentage

0.25 10%

Rs-0.50 40%

Rs-1/- 10%

Rs-2/- 05%

Rs-5/- 20%

Rs-10/- 15%

Total- 100%

Figure:-8 Market share in percentage of Lotte

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5.2 PERFETTI:-
Similarly in case of perfetti india pvt ltd,it has all the variety range chocolate. It basically sells its product
in rs-0.50,and rs-1/-and rs-2/-,range of chocolate in the confectionary market. They are listed below:

Table:-10 Mrp in different range of products of perfetti

Mrp in different Market share

range

Rs-0.50/- 80%

Rs-1/- 15%

Rs-2/- 05%

Total- 100%

Figure:-9 Market share in percentage of Perfetti

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5.3 WRIGLEY:-
Similarly in case of Wrigley India pvt ltd,it has different mrp range .Wrigley is selling its product with
rs0.50/-,rs-1/-,rs-2/-,rs-5/-.the product of mrp rs-1/- is selling very high in the market. The different range
of the product is given below:
Table:-11 Mrp in different range of products of wrigley

Mrp in different Market share

range
Rs-0.50/- 05%

Rs-1/- 70%

Rs-2/- 10%

Rs-5/- 15%

Total 100%

Figure:-10 Market share in percentage of Wrigley…

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5.4 ITC:-
Itc is an another confectionary company it has the products which are in two range i.e. rs-0.50 and rs-
1/-.they are listed below:

Table:-12 Mrp in different range of products of itc

Mrp of the Market share

different products
Rs-0.50/- 60%

Rs-1/- 40%

Total- 100%

Fig:-11 -Market share in percentage of Itc

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5.5 NUTRINE:-
It has the only and one reputed brand which is available in the market in the mrp of rs-0.50/-.its market
share are listed below.

Table:-13- Mrp in different range of products of nutrine

Mrp of the product Market share

Rs-0.50/- 90%

Rs-1/- 10%

Total 100%

Fig:-12 - Market share in percentage of Nutrine…

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5.6 Fig:-13:-Then the whole range of different company can be displayed in following graph .

CHAPTER-6
By SWOT ANALYSIS:-

The over all evaluation of a company’ strengths,weakness,opportunites and threats is call SWOT
analysis, by which we can compare with each other and find out which is the best in the confectionary
market and what is their market strategy in this market. It involves monitoring the external and internal
marketing environment.
External environment consists of opportunity and threat analysis and internal environment based on
strength and weakness. That are discussed below.

Strength:
In the strength ,it list the specific areas of current and future strength for the company.
 strong brand name.
 market coverage
 innovation marketing
 product mix
 packaging
 pricing
 physical distribution service level

Weakness:-
It list the specific areas of current and future weakness for the company.
 Higher price compared to competition.
 Narrow product range

39
  Lower productivity compared to international standards.
 High personnel attrition rates.

Opportunity: it list the external opportunity available in the company or business unit’s current and
future environment.
 Political environment
 Social environment
 Economical environment
 Technological environment
 Natural environment
 Legal environment

Threats:-in this block we list the external threats facing the company or unit now and in the future.
 The consumer demand
 The industries and competition
 Technology
So by the help of SWOT analysis we can analyze the companies strength,weakness,opportunities,and
threats. By this analysis we can easily conclude that which has the best marketing strategy.

Then first of all about the confectionary company lotte India corporation ltd.

6.1 LOTTE:-

We discuss about the lotte India by the help of SWOT analysis, these are given below,
Strength:-
• It has strong brand name like coffe-bite,it is the strength of the company.
• Lotte has a strong presence in the market.steady growth in sales.
• Semi state wise coverage;urban,and semi rural area covered.
• Small packs,big packs, and every range of products available in lotte India.
• Chocopai is the only product of lotte which has no competitor in the market. There is big scope in
future.

Weakness:-
• Weak position in industrial confectionary; lotte india is far behind the leader perfetti and
Wrigley.
• Market share in confectionary is unsatisfactory.
• There is no advertisement or any strong punch line by which we can attract the customer very
easily.
• Low distributors profile.

Opportunity:-

• Economic reforms, liberalization and globalization carry good opportunities.

• Technology import has been liberalization.
• By technological import the company can meet the need for more information and advice

40
 • A company can introduce the product very easily.
• Large domestic market size.

Threats:-
• Rapid changes in consumption habits and lifestyles impose a degree of vulnerability on corporate.
• The legal process is rather slow.
• Consumers are becoming very choosy, while buying chocolates.
• Lucrative confectionary market attracts more competition.
• Duplicacy of brands is high in confectionary.
• Distributer bargaining power because of large no of similar product of different brand.
• Local brand product

Then discussing about the another confectionary industry i.e. perfetti van malle,by SWOT analysis we
have analyze the company’s market position.first of all its strength.

6.2 PERFETTY:-

Strength:-
• It has strong brand name like chloromint, bigbabol,alpenliebe,it’s every product are well
marketed.
• Perfetti has a strong presence in the market. High growth in sales.
• Full state wise coverage; urban,and rural area are fully covered.
• Small packs, of products available in perfetti.
• It has a good punch line of chloromint i.e. “bina tayari ke dubara maat puchna”.

Weakness:-
• Perfetti has no all type of range products, it means it has only rs-.50/-and rs1/-product not above.

Opportunity:-

• Economic reforms, liberalization and globalization carry good opportunities.

• Technology import has been liberalization.
• By technological import the company can meet the need for more information and advice
• A company can introduce the product very easily.

Threats:-
• Rapid changes in consumption habits and lifestyles impose a degree of vulnerability on corporate.
• The legal process is rather slow.
• Consumers are becoming very choosy, while buying chocolates.

Then we will discuss about the company Wrigley, which has good market share in the confectionary
market.

41
6.3 WRIGLEY:-

Strength:-
• It has strong brand name like boomer, it is the strength of the company.
• Wrigley has a strong presence in the market. Steady growth in sales.
• Semi state wise coverage; urban, and semi rural area covered.
• Market share in confectionary market is satisfactory.

Weakness:-
• Growing position in industrial confectionary;wrigley is far behind the leader perfetti.
• Low area coverage.
• There is a only one brand by which t continuing its business,i.e. with the help of boomer.

Opportunity:-

• Economic reforms, liberalization and globalization carry good opportunities.

• Technology import has been liberalization.
• By technological import the company can meet the need for more information and advice
• A company can introduce the product very easily

Threats:-
• Rapid changes in consumption habits and lifestyles impose a degree of vulnerability on
corporate.
• The legal process is rather slow.
• Consumers are becoming very choosy, while buying chocolates.

Then discussing about the company which is based on cigarette .i.e. discussing about ITC.itc stands for
Indian tabaco company. By SWOT analysis we can analyze its market strength.

6.4 ITC:-
Strength:-
• It has strong brand name like minto-fresh and candy man, it is the strength of the company.
• Itc has a major presence in the market. Steady growth in sales.
• Semi state wise coverage;semi-urban,and semi rural area covered.
• By help of cigarette it stands in the market.

Weakness:-
• Weak position in industrial confectionary;itc is far behind the leader perfetti and Wrigley.
• Market share in confectionary is unsatisfactory.
• Without cigarette it cant stable in the market,

Opportunity:-

• Economic reforms, liberalization and globalization carry good opportunities.

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 • Technology import has been liberalization.
• By technological import the company can meet the need for more information and advice
• A company can introduce the product very easily
Threats:-
• Rapid changes in consumption habits and lifestyles impose a degree of vulnerability on
corporate.
• The legal process is rather slow.
• Consumers are becoming very choosy, while buying chocolates.

Then lastly analyze the company which has low market share,i.e. talking about nutrine corporation ltd.

6.5 NUTRINE:-

Strength:-
• It has strong brand name like mahalacto,it is the strength of the company.
• Nutrine has a presence in the market due to the product of mahalacto..steady growth in sales.
• Semi state wise coverage; semi-urban, and semi rural area covered.
• Only one range of product available in nutrine confectionary ltd.

Weakness:-
• Weak position in industrial confectionary; lotte india is far behind the leader perfetti and Wrigley.
• Market share in confectionary is unsatisfactory.
• Low man power in Orissa.
• There is no advertisement or any strong punch line by which we can attract the customer very
easily.

Opportunity:-

• Economic reforms, liberalization and globalization carry good opportunities.

• Technology import has been liberalization.
• By technological import the company can meet the need for more information and advice
• A company can introduce the product very easily

Threats:-
• Rapid changes in consumption habits and lifestyles impose a degree of vulnerability on
corporate.
• The legal process is rather slow.
• Consumers are becoming very choosy, while buying chocolates.

So we see what are the strength ,weakness ,opportunity, and threats, of these companies. How they
establish in the market and what are the marketing strategy taken by these companies, we can easily
analyzed these companies by SWOT analysis method by which we can understand about them.

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 LIMITATION:-

• Limited time available for interviewing the respondents. As a result of this it was
not possible to gather full information about the respondents.

• When I interviewed children and teenagers, sometimes they used to give answers
under the influence of their parents or elders.

• As summer training is going under summer season, so sometimes people are less
interested in filling up questionnaire. And in this time schools are closed, so in
survey I can’t fully interact with more children.

• Non-cooperative approach and rude behavior of the respondents.

• My survey is based on only two cites i.e. Bhubaneswar and cuttack.i cant got full
information about other areas of Orissa.

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 MY FINDINGS

• During the survey it was found that still there are 10% people who have not aware
about coffe-bite chocolate.
• Lack of Awareness in consumers. Many people are not know about lotte India’s
products specially they are not aware about the company’s brand name i.e. coffe-
bite,specially children.
• When I interviewed people then many of the people can not recall coffe-bite
advertisement. It shows Lack of Advertisement or advertisement is not timely
given or advertisement is not given on right time.
• In its advertisement is not using any brand ambassador which attracts all age
group people like Cadbury.
• There is lack of Sales Promotional Activities i.e. free tattoo, extra weight, toys,
quiz contest etc.
• Perfetti is main competitor and strategically better performer than lotte.
• I found the main thing is that “coffe-bite” brand name has very good image in
consumer’s mind and they consider it as Pure & Good Product.
• People are known about coffe-bite,they are not aware about, it is the product of
lotte india.and people are not aware about the lotte’s other product, only coffe bite
is the brand name.
• In my survey period I found that chocopai is the only product of lotte ,which has
no competitor in the market.
• Chocopai is the Mrp of Rs10/-,it is not a perfect Mrp for customer,in Orissa market
where many people are in below poverty line. If company reduces the Mrp rate of
chocopai then the company gets more and more business in chocopai.

45
 SUGGESTIONS

 In order to maintain and increase the sales in the city of Bhubaneswar and Cuttack
or in other cities of orissa,then the following recommendations regarding lotte
india; particularly regarding advertisement, distribution, promotional policies, etc,
are hereby suggested:
 First and foremost lotte should take proper action in order to improve service,
because although being on a top slot in Butter and milk supplies it does not get the
sales in chocolate, which it should get.
 Company should use brand ambassador which attracts each age segment i.e. Saniya
Mirza, Mahendra singh Dhoni, Amitabh Bacchan,Sachin Tendulkar,Yuvraj
singh.Jadoo etc.
 Lotte should give local advertisements apart from the advertisements given at the
national level. Local advertisement must mention the exclusive lotte india shops of
the city.
 Try and change the perception of the people through word of mouth about Lotte
in advertisements, because they are the best source to reach Children and families.
 Though Lotte chocolate advertisements are rarely shown on television yet many
people could recall it as per the data of research. It shows that there is only need to
give advertisement only to rememorize customers. Because lotte is very strong
brand name.
 Company should launch chocolate in new attractive packing to change image of
lotte chocolate in consumers mind.
 Company should introduce sales promotion schemes like free weight, pranky,
tattoo, contest, free gifts etc.
 Advertisement can be done with the help of animations that attracts children and
teenagers because chocolates are consumed largely in this segment.
 Company should introduce a good punch line by which children are remember very
easily.

46
 Conclusion

As we know that Lotte is very big organization and market leader in coffee products. It
has maximum market share in coffee, gum and fruitz, which are its main/core products.
As we know Lotte is a co-operative organization but confectionary industry is a
profitable industry we can’t ignore it. With the help of research, company can find out its
week points in chocolate product and can increase its market share through rectify
mistakes. People have believed in lotte’s product and they will accept its chocolates also
if effective actions were taken.
The survey resulted into following conclusions :
 Lotte must come up with new promotional activities such that people become
aware about Lotte Chocolates like boopro,spout,lacto king ,fruitz etc.
 Quality is the dominating aspect which influences consumer to purchase Lotte
product, but prompt availability of other chocolate brands and aggressive
promotional activities by others influences the consumer towards them and also
leads to increase sales.
 In comparison to Lotte India, the other players such as Wrigley,itc, and Perfetti
provide a better availability and give competition to the hilt.
 People are mostly satisfied with the overall quality of lotte india, but for the
existence in the local market Lotte must use aggressive selling techniques.

47
 BIBLIOGRAPHY

1. www.lotte india.com

2. www.google.com

3. www.marketresearch.com

Books
 abell,derekF.,strategic market planning; problems and analytical
perspectives,prentice-hall,1979.

 Dalrymple, douglasj.marketing management, text and cases,new York,1976.

 Kotler, Philip, marketing management,10th edition,prentice-hall of india,new

delhi,1999.

 Levitt,Theodore,(the globalization of market) Harvard business review.1982.

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 APPENDIX
QUESTIONNAIRE

Competitive analysis of chocolate industry with special reference of lotte india.

Questionnaire for customer:-

Date:

Serial No:

Respected sir/madam,
I am sri jyoti prakash bhadra, a PGDM student of G L Bajaj Institute of Management and
Research.Greaternoida. doing my summer internship with LOTTE INDIA. For which I request you to
fill up this questionnaire to complete my project.

Personal Information:

Name:

Age:

[1] What kind of Chocolate do you eat?

(A)Branded (B) Non-branded

[2] Who uses chocolates in your family?

(A) Children Teenager (B) Young

(C) Old (D) other

[3] What form of Chocolate do you like?

(A)Cookies (B) Bar

(C) Mint (D)lolly pop
(E) other

[4] By which media you prefer to watch advertisements?

(A) Television Hoardings (B) Newspapers

(C) Magazines (D) Others (Mention)

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[5] What factors effects you in a chocolate advertisement?

(A) Brand ambassador (B) Jingles

(C) Comedy (D) Music
(E)Others (Mention) _______
[6] Have you ever tasted Lotte’s Chocolate?

(A)Yes (B)No

[7] What is the frequency of purchasing Chocolate?

(A)Daily (B)Weekly
(C)Fortnightly (D)Occasionally
[8] Are you satisfied with the product of lotte ?

(A) Highly satisfied (B) Satisfied

(C) Less satisfied (D) Not satisfied

[9] Which Chocolate do you like most?

(A) LOTTE (B) PERFETTI

(C) WRIGLEY (D) ITC
(E) NUTRINE

THANK YOU
_________________
______________
____________

50
In my two month summer internship, I had started working in Orissa market on 22 may 2009,and finished 18th
july 2009 ,total working days was 49.I had done direct marketing 26 days with sales man in the market, for listing
the beat and route list. Maintaining the availability of stock. and stock pressure, competitor activities ,strength and
weakness. Another 13 days I had worked with company ISRs and TSIs direct with market, the main features was
doing secondary sales. Rest 10 days I had done market survey direct interact with the guardian,student,children,
which was shown in my project report. The route and beat listing are also add with my project report. and it is add
with different folder in my project which is named as DRCP(daily route call plan).

51