Aim

The aim of this piece of coursework is to evaluate the marketing policy of Swiss-Chocolate to market chocolate bars & special chocolates. I will conduct primary and secondary research to find out the data I need. In conclusion I will say how the marketing strategy needs to improve.

1

History of Chocolate1826, JACQUES FOULQUIER (1798-1865) started the production of chocolate by hand in Geneva. His son-in-law, Jean-Samuel Favarger, later became his successor.

As a wholesale provision merchant, CHARLES-AMEDEE KOHLER(17901874) started by buying ready-made chocolate, but finally went over to producing his own in 1830. Like Cailler and Suchard before him, he strove constantly to improve and perfect thc popular types of chocolate. In one of his experiments he succeeded in developing something which was going to be of great benefit to the chocolate industry - hazelnut chocolate. In partnership with his son, he manufactured this new speciality in Lausanne. The Kohler factory became a large operation following its amalgamation with the firm of Daniel Peter.

2

After the founding of the first chocolate factories in French Switzerland, 1845 saw the establishment of the first factory in the German-speaking part of the country. In that year, RODOLPHE SPRNGLI-AMMANN(18161897), using an improved method of manufactrure, produced chocolate for the first time in his confectioner's shop in Zurich. In 1899, his son, Rodolphe Sprngli-Schifferli or, more accurately, Chocolat Sprngli A.G., took over the factory of Rodolphe Lindt. The reputation of Lindt chocolate was so great that the price paid for the secret recipes, the trade-mark rights and the equipment was 1 1/2 million gold francs !

3

AQUILINO MAESTRANI (1814-1880), whose father was one of thosenatives of Tessin who emigrated to Lombardy in the middle of the 18th century to learn "the chocolate trade", and who, himself, gained valuable experience in Milan, opened a chocolate factory in Lucerne in 1852. Soon space became too limited for the constantly expanding factory, and Maestrani moved to St. Gallen.

4

JACQUES KLAUS (1814-1909), a native of the canton of Zurich, made anextended "journeyman's" tour through Switzerland and France before setting up in business as a confectioner in Le Locle. In 1856 he established a chocolate factory which rapidly achieved a considerable reputation.

5

The road which led DANIEL PETER (1836 - 1919) to chocolate was anything but straight. The son of a butcher, he was employed by a woman in Vevey who owned a grocer's shop and made candles as a sideline. Since his employer, Madame Clement, saw straight away where the boy's real interest lay, she let him take over the candlemaking on his own account.

6

Unfortunately - or rather, fortunately for the chocolate industry - the paraffin lamp became popular just at this time, and from then on the Swiss, like most of us, used candles mainly to decorate their Christmas trees. But Daniel Peter's interest in Vevey was not confined to candles; he also had an eye on Fanny Cailler, the eldest daughter of Franois-Louis Cailler. And so, almost accidentally, he discovered chocolate. But he didn't let matters rest there. Like a true Swiss, he took milk and combined it with chocolate. 1875 was the proud year of Daniel Peter's invention of milk chocolate. We should be grateful to him; for most of us, chocolate without rnilk wouldn't taste half as nice.

HENRI NESTLE (1814 - 1890) was a latecomer to the chocolate industry.His story started with milk. But not the milk we find on the doorstep every morning or buy in the grocer's shop. Henri Nestle had invented the manufacture of children's groats and, in this connection, had perfected the making of condensed milk, without which Daniel Peter could not have industrialized his milk chocolate. The Nestle and Peter companies worked so closely, following the death of the two founders, that in 1905 Messrs. Peter, who had meantime joined forces with Kohler, produced, to cater for

7

the French taste, a very sweet chocolate developed by the Nestle company.

In 1874 JOHANN GEORG MUNZ set up a confectionery works in Flawil. Some time later, Albert Munz also began to manufacture chocolate.

8

Below the cathedral in Berne, RODOLPHE LINDT (1855 1909) opened a chocolate factory powered by a water-wheel. A born manufacturer, his genius for invention led him to a new process by which he produced the first melting, or fondant, chocolate. The refining effect, which we know today as "conching", was first noticed by Rodolphe Lindt while processing chocolate over several days in a narrow mixing trough. He incorporated this into his production methods and, at the same time, developed equipment on principles still in use today. The addition of cocoa butter to the chocolate, to give it the necessary melting quality, was another epochmaking discovery of this man from Berne. These discoveries and the invention of milk chocolate by Daniel Peter were essential to the manufacture and success of the fine Swiss chocolate we know today. In 1893 CHARLES MLLER and KARL. BERNHARDT founded the first, and to this day the only chocolate factory in the canton of Grison. As a result, it traded under the name "Grison". It changed hands in 1961 and then carried on under the name of Lindt & Sprongli.

9

In the Langgasse area of Berne, JEAN TOBLER (1830-1905), a native of Appenzell, had conducted his "Confiserie spciale" since 1868. He had learned the confectionery trade in St. Gallen and in Paris. On opening his shop in Berne, he sold mainly specialities which he rnade himself, us- ing chocolate coatings supplied by various manufacturers. Very soon he was selling so much chocolate that he thought that he should make it himself. And so he was forced by circumstances to become a chocolate manufacturer. In the year 1899, he and his sons founded the "Fabrique de Chocolat de Berne, Tobler & Cie.". Today, this firm belongs together with Suchard to the Jacobs Suchard Tobler company.

The Product

10

Switzerland's chocolates have earned an international reputation for high quality. Swiss-Chocolate is a well-established public limited company, originally Swiss formed in 1867 by Henri Nestl, that trade all over the world. A public limited company is a company that sells stocks and shares on the stock market. Neste has been part of the British culture for longer than most UK companies. A sales branch first came to Britain in 1868, just a year after the company was founded. Then the Anglo-Swiss Condensed Milk Company (which merged with Nestl in 1905) established its first UK factory.

From the 19th century until the First World War and throughout the second world war the Swiss chocolate industry was very export oriented. After

11

theSecond World War Switzerland began to outsource production due to commercial restrictions.

Today most Swiss chocolate is consumed by the Swiss themselves (54% in 2000), and Switzerland has the highest per capita rate of chocolate consumption world wide (11.6 kg (25.6 lbs.) per capita per annum).

In 2004 148,270 tonnes of chocolate were produced in Switzerland. 53% of this was exported (20% to Germany, 11% to France and Great Britain and 13% to North America). The gross income of the Swiss chocolate industry in 2004 was 1,365 million CHF (814 million from the local market, 551 million from exports)

In 1901 Swiss chocolate producers created the Union libre des fabricants

suisses de chocolat . In 1916, this was divided into the Chambre syndicale des fabricants suisses de chocolat and theConvention chocolatire suisse.The former "Chambre syndicale" (today the Chocosuisse) protects the interests of Swiss chocolate producers. The "Convention chocolatire" focused on the quality of the chocolate and sought a uniform price strategy. In 1994 the Convention was disbanded.

12

Target MarketSwiss-Chocolate targeting urban market to increase there sell. In cities like Mumbai, Delhi, Bangalore etc. where maximum people buy chocolates. Here company is try to reach each and every one in public-from higher class to lower class. Example: The gift pack of Rs. 50, Rs. 80, Rs. 200, Rs. 250 and some small chocolates of Rs. 3, Rs. 5, Rs 20. As per new plan and strategy new target is pregnant women, and young generation.

MARKET DEMOGRAPHICS: Swiss-Chocolate target market is male and female both. Target market age group is between from 5 year to 45 year.

Geographic: Urban areas and rural areas around the same all across India Growing rural areas.

13

Market NeedsThe market needs towards this particular product or what a consumer truly wants from a confectionery product are

Reasonable Pricing:Pricing of product must have to be reasonable so that it will be affordable for each and every target group. Swiss-Chocolate pricing starts from Rs. 3, so it is affordable for every one.

Optimum Quality;Consumer buy the product as per there quality. Price is also important but after price quality is main thing. Swiss-Chocolate is with real pure SwissChocolate. In quality SwissChocolate is ahead of other competitors.

Quantity:Consumer also required quantity in the product. When consumer pays money for any item then they want good quantity. Swiss-Chocolate is giving good quantity as per the price. In quantity Swiss-Chocolate do not compromise with any thing.

14

Presentation Factor (Packaging):Packaging is the thing which may attract consumer towards any product. Therefore packaging must have to be attractive and fancy. Swiss-Chocolate created shiny, colour full packaging for different product. This packaging may attract consumer towards SwissChocolate.

15

SWOT ANALYSISStrength Past experience from the International Market Product Quality Reasonably priced Swiss blend chocolates Diverse product range (Available in various prices) Implementing sales strategy into the already existing distributor-

wholesaler-retailer-consumer channel

Weakness Low awareness about the brand No brand identity established in Indian market Market highly dominated by major players Difficult to blend Swiss blend chocolates in the already existing consumer habit of consuming milk chocolates.

16

No experience in the Indian market

The PriceI searched my local newsagents, Cadbury, Nestle and some local brandfound out the price of Swiss-Chocolate. I would expect all these prices to be reasonably similar because all the shops are quite close to each other and should be competitive prices.Chocolate Balls Chocolate Bars Big Chocolate Bar 20 Rs 25Rs 25 Rs 18 Rs Girls Special Special Chocolates Festival Special Special for Pregnant Women 5-250 Rs -

Product Brand Swiss-Chocolate Cadbury Nestle Local Chocolate

3 Rs 3 Rs 1 Rs

5 Rs 5 Rs 5 Rs 5 Rs

50 Rs -

80 Rs 80 Rs 100 Rs -

200 Rs 180 Rs -

These prices show that they are all quite close to the Swiss-Chocolate. Cadbury selling there all chocolates in same rates which Swiss-chocolate have. Cadbury is main competitor in INDIAN MARKET. Nestle is also near to Swiss-Chocolate but they dont have many varieties in there chocolates.

17

In Indian Market there are some local competitors also. But these local brand are too far from Swiss-Chocolate.

In varieties Swiss-Chocolate is in front. Cadbury, Nestle etc. brands are well known in India but they dont have that much variations in there product. Swiss-Chocolate have SPECIAL chocolates for each and ever one. As Swiss-Chocolate is also known in market but not more then Cadbury and Nestle.

Swiss-Chocolate trying to keep there price near to other there competitor. Here there is one term which is called as RRP. RRP is an abbreviation for Recommended Retail Price. The price level that a company recommends their retailers sell the item at. In most cases companies cannot force their retailers to sell at this price and retailers may wish to sell at a higher or lower price than the RRP. Some markets have allowed producers to fix the retail price in a practice known as retail price maintenance.

As per research, RRP of a Cadbury is high, this shows that the product can compete with these. If Swiss-Chocolate were sold in less price then Cadbury it would show that it isn't doing as well as Cadbury or Nestle.

18

The PromotionSwiss-Chocolates are advertised using television, billboards, magazines and newspapers and radio.

On Swiss-Chocolate packaging there is a promotion where buyer can win free chocolate for 1 year. Swiss-Chocolates are using this strategy because it will encourage people to buy this new chocolates over other chocolates of a similar type.

19

. Swiss-Chocolate coming out with new concept- Special chocolate For Pregnant Women. These chocolates are with irons and proteins which gives more energy to pregnant women. In taste, these chocolates are very good and healthy also. This is the new promotion strategy of SwissChocolate. Till now no one did this kind of promotion.

20

Special Advertising

21

Full Combination Pack

Swiss-Chocolate even coming with new strategy- MacFlurry TWIX. Here company collaborate with MacDonald and they are coming with new icecream with Swiss-Chocolate flavor. Here MacDonald added some amount of chocolate in there ice-cream and they make MacFlurry TWIX. Even

22

Cadbury also did same thing but TWIX is more tasty and low in price as compare to Cadbury product.

Creative Advertisement on Bus

23

24

Newspaper Advertisement of Swiss-Chocolate

25

26

Magazine Advertisement of Swiss-Chocolate

27

28

29

Billboards and Hoardings of Swiss-Chocolate

30

Highway Advertisement

31

Local Advertisement

32

Creative Advertisement of Swiss-Chocolate

33

TVC of Swiss-Chocolate

34

Radio Spot of Swiss-Chocolate

35

The PackagingSwiss-Chocolate packaging for Original Swiss-Chocolate is dark brown with white background. This is quite attractive and works well for the product. The chocolate stands out quite well against other chocolates on the shelves because the packaging is quite shiny. Cadbury's Dairy Milk use packaging that is purple; Cadbury's have copyrighted the colour of their Dairy Milk so that no other companies can use or copy it.

Shiny Packaging

36

The bar measures about 15cm long by 3cm high. The packaging makes chocolate look quite attractive and does well at making you want to buy it because it stands out well and has an original name. This has been the basic product design for quite a long time. Swiss-Chocolate have kept the same packaging for a long period of time because they know that people can recognise the packaging easily and the packaging works well.

37

Swiss-Chocolate Bar Design

38

Celebration Special Chocolates

39

Girls Special Chocolate

40

Big Chocolate Bar

41

Special Chocolate for Pregnant Women

42

THE PLACE43

Swiss-Chocolate are sold in large range of shops. These include newsagents, supermarket, cafs, motorway service stations, school canteens and vending machines. The motorway service stations can afford to charge a lot for Swiss-Chocolate and similar products because if people really want one they can't shop around very easily for a cheaper SwissChocolate bar because there aren't very many shops on the motorway. Newsagents and supermarkets can charge less because there are more of those around so people can look around for more of these. Motorway Service Stations are likely to charge close to 50Rs and less then that also for a single, Original Swiss-Chocolate whereas a newsagent will charge close to the 30Rs. On the shelves Swiss-Chocolate don't really have a special place unless they have a special offer. If they are offering some kind of special offer with the chocolate then they are often sold in large cardboard 'bins' where they stand out a lot more.

It is usually sold in shops that attract people who are in a hurry or just stop at the shop to buy a single item, like a chocolate bar or a drink. Because of this Swiss-Chocolate should get to be placed on a good place on the shelf because if people are going into the shop they are more likely to pick a chocolate that stands out than one at the back of the shelf.

The Current Marketing Strategy44

The product is sold for Rs 5 to Rs 250 more than normal chocolate bars such as Cadbury's Dairy Milk or Nestle. This is because it is a larger and testy chocolates and Swiss-Chocolate has priced in accordance to this fact. The product is marketed on TV, billboards, radio and in magazines.

Swiss-Chocolate have special chocolate for pregnant women. These chocolates are with irons, proteins and all the healthy ingredient for any pregnant women. As per the company this new strategy will work because in India no one launch this kind of chocolates.

Swiss-Chocolate also collaborate with MacDonald and create McFlurry TWIX. To arrack youths towards Swiss-Chocolate company come out with this new strategy.

45

Visiting Card of Swiss-Chocolate

46

Front Side of Visiting Card

47

Back Side of Visiting Card

48

Letterhead of Swiss-Chocolate

49

50

Envelope of Swiss-Chocolate

51

52

Website of Swiss-Chocolate

53

54

Web-Advertisement of Swiss-Chocolate

55

56

Facebook page of Swiss-Chocolate

57

58

Final Conclusion Swiss-Chocolate is a brand of chocolate bar made and is the Market Leader in manufacturing reasonably priced Swiss blend chocolates that dont compromise on quality. Occupying a market share of 28% in Europe. Swiss-Chocolate international promises to enter the Indian markets soon Factors for success- well experienced in International markets and the diverse product range available with affordable prices. For Swiss-Chocolate International, India is: huge potential market, source of managerial talent

59