ITC to grab a bite of Rs 11,000-crore Chocolate Market

ITC entered into Rs 11,000-crore chocolate segment with over a dozen launches in the category. ITC’s product offerings include chocolates, chocolate cookies, wafers and spreads was part of the plan to make the business more profitable.

ITC’s bold decision to enter into chocolate decision should be appreciated as the whole market is dominantly played by few players like Cadbury, Amul, Luvit and others. Personally, I welcome the strategic decision of ITC’s entry into this chocolate segment, as the market is mostly influenced by one foreign player, and here there is one more Indian manufacturer through its brand “Fabelle”.

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ITC claims that its going to redefine the Indian luxury chocolate segment through its chocolate experiences for Indian consumers through its distinguished chocolate offerings like Fabelle Choco Deck and Fabelle Soft centers

Repositioning of Cadbury Gems

Confectionary gaint, cadbury repositioned its gems. Gems used to be children chocalate and appealed kids so far and suddenly decided to target adults. The brand has the tagline “Raho Umarless”, can be translated into “Be Ageless”. The concept of the brand may be to encourage even adults to enjoy the life irrespective of age. Though the concept is good, but ad could not reflect its intended position. The reason for targeting adults, sales might have attained maturity level which forced the company to target new segment to boost its sales. Another view could be the market expansion.

However, the brand failed to give a strong reason as to why adults purchase gems. The sculpture ad could not convey it properly. Instead, the brand should have considered real life situation of enjoyment of adults(with children) sharing a moment. This would have attracted adults too. It is true that adults rarely indulge with gems when they buy for kids, but do not buy for themselves. Here, the company has made an attempt to include even adults as their target group, but the ad effort seems to be a failure.

Repositioning of any brand conveys its salient feature which is missing in this campaign. And also what Lacks in this campaign is answer to consumer question as to why to buy gems.

Well Cadbury is a great company and made an effort to attract new segment. But time will decide and we are going to witness whether it is a great effort or poor and ineffective effort. Let us wish and hope cadbury gems will drive adults into its way.