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Chocolate consumption is gaining popularity in India due to increasing income and lifestyle. Chocolate market in India is valued at Rs 2,000 crore and is growing at the rate of 18 – 20 per cent per annum. The Indian chocolate market is seen growing at a compounded annual growth rate of 15-20%. Over 70% of chocolate consumption takes place in the urban areas. Chocolate consumption in the rural areas is negligible in India. Chocolate market is a highly concentrated market, with Cadbury having 70per cent and Nestle around 20 per cent. These two companies have been instrumental in building up the chocolate market in India with huge investments in product development, advertising and brand building. Modern trade constitutes about 10% of the overall chocolate category, or roughly Rs 320 crore, according to Nielsen. Of this, brand Cadbury Dairy Milk has a share of 35%, while Bournville and Silk together account for 18%.

Cadbury’s India Ltd, has been in India since 1948. In all the segments i.e.moulded chocolates, count chocolates and panned chocolates, it is undoubtedly the market leader. The world’s largest marketer of chocolates (became world number one when it acquired Rowntree Macintosh of the UK) – Nestle, made its foray in the Indian chocolate Industry in November 1990. In the eighties, Cadbury’s decided to focus its efforts on making chocolates a distinct category with an identity of its own. And the marketer had positioned its product at children to do that. By the end of the eighties, Cadbury’s ruled the market with over 80 percent market share. The rapid growth of various brands in India has led to a tight competition and consumers are offered with brand choice in the market, it becomes necessary for manufacturers to understand the major factors attracting buyers to…...

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