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BS 12 Project

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Type of product /service identified, reason behind

selection and permissions and licences required.

Why have they selected this product/service?

Chocolates in India are steadily substituting ‘mithai’ or traditional indian


sweets. Due to the increasing level of health consciousness people prefer
well wrapped chocolates rather than sweets on festivals. Taking advantage
of this situation, the top chocolate brands in India are now concentrating on
packaging.

Initially, chocolates were limited to a few caramel flavours and milk


chocolates, but now the introduction of dry fruits and biscuits in chocolates
created waves in Indian chocolate market.

Chocolates are loved by everyone due to its sweet and gooey taste. Some
people consume dark chocolates due to its various health benefits like; it
helps reducing cholesterol, blood pressure, etc. Hence, I chose to market
chocolates as the demand for chocolates in the market is very high.

Permissions and Licenses

Following are the permissions and licenses required:

● Business License
It is a permission issued by the government agencies that allow to
conduct business. It is a license for preparing and handling of goods.

● Liability Insurance
Part of general insurance of risk financing to protect the insured from
law suits.
● Contractor Permission
● Municipality Permission
● Surveyor Certificate
In this, application for industrial license, it is required to quote ITC
code no of the article he/she intends to manufacture.

Features

Dark Delish Chocolates


● High in antioxidants - makes us happy
● Contains essential elements and nutrients
● Cocoa is highest natural source of magnesium

Dark Delish Milk chocolates


● Acts as a stimulator to brain
● Contains antioxidants that boost the immune system
● Contains potassium and magnesium - a good source of vitamins B, D
and E.

Dark Delish Fruit and Nut Chocolates


● Raisins are a good source of Iron
● Cashews contain no cholesterol
● Contains alomonds which helps in regularising haemoglobin

Range of the product, features.

I would provide 3 chocolate bars ranging from Rs. 10 to Rs. 40.


● Plain Chocolate - Rs 10
● Milk Chocolate - Rs 25
● Fruit and Nut cHocolate - Rs 40
Plain Chocolate
It is a plain dark chocolate with great texture and taste. It does not consist
of wafers or nuts.

Milk Chocolate
It is silky, buttery chocolate made out of pure cow milk.

Fruit and Nut Chocolate


Contains fruits and cashew nuts with perfect blend of milk.

Brand name and the product.

​DARK DELISH

Identification/Brand mark or logo, Tagline

Logo of the product -

Tagline of the product - “ Choose Pleasure. Silky Smooth”

​Labelling and packaging.

Label -
Packaging -
DARK DELISH’s packaging will be of secondary level as it will add an
additional level of resistance. The chocolate will not melt fast. Consumers
are becoming health conscious and prefer well wrapped chocolates. My
package of chocolates is designed to attract people of all age at first
glance. It is wrapped brown in colour which substitutes primary packaging.
Later, the chocolates undergo transportation packaging so that the
chocolates can be transported to respective wholesalers.
​Competitors analysis

Competitive Brands
● CADBURY
● NESTLE
● AMUL
● MARS
● HERSHEY

Competitors USP
● AMUL is an Indian dairy cooperative, based at Anand in Gujarat.
Product includes: Amul almond bar, Bindaaz Fundao, Choco zoo.
Market share: Very low, upto 5%. Strength: Parent support, low prices and
strong distribution channel. Weakness: Lack in awareness in rural India,
comparatively small business units.

● CADBURY is a British multinational confectionary company owned by


Mendilia International. It is the 2nd largest confectionery brand,
whose headquarters is located in Unbridge in Greater London.
Product includes: Dairy Milk, 5 Star, Perk, Gems and etc. Market
share: Highest in India, upto 65 - 70%. Strength: Market shares, Strong
brand equity in India. Weakness: Poor technology in India compared to
international technology.

● NESTLE is a Swiss multinational company whose headquarters is


located in switzerland.
Products included: Kit kat, Munch, Milky bar. Market share: 24%.
Strength: affordable prices for the Indian population, strong distribution
networks. Weakness: Unknown brand to rural areas.
● MARS is a new jersey based compay and is owned by Mars
incorporated. It is among the leading chocolate makers on global
scale.
Products included: Mars bar, Bounty. Strength: Strong competition as
it has introduced a new chocolate Galaxy. Weakness: Has no reach in rural
areas.

● HERSHEY company is an American company and one of the largest


chocolate manufacturers in the world.
Products included: Milk chocolate, Air delight, Special dark. Strength:
diversified products, strong social and public image. Weakness: Low
market share.

Price of the product and basis of price fixation.

Selected channels of distribution and reasons thereof.

Chocolate is a consumer product and has to pass through atleast one


channel, direct consumer relationship is not possible for distribution. I am
going to use two - level channel of distribution as it provides cost benefits.
Each level adds up to the final cost paid by the consumer and this provides
a competitive and standing prices in the market.

Producer - Wholesaler - Retailer - Consumer

​Decisions related to transportation and warehousing.


State reasons.

Warehousing:
Chocolate products require controlled temperatures because a warm
climate condition may affect the product’s appearance and quality. Our
warehouses thus have temperature controlling system which is usually set
at 65 degree f. Mechanical manipulation of humidity are done through
mechanical refrigeration and the cooling machine to take out hot air.

Transportation:
DARK DELISH transports chocolates via road transport. Following are the
reasons for choosing road transport:
● It can collect goods directly from factories and deliver it at the door
step of wholesaler and retailer.
● It is economically efficient as loading and unloading costa are
reduced.
● No fixed schedules, can be operated any time as per the
convenience.
● It includes less investments as vehicles like trucks and tempos cost
comparatively less.

Promotional techniques used and starting reasons for


deciding the particular technique.

There are different promotional techniques, some of which that will be


adopted by DARK DELISH are:

● PUBLIC RELATIONS
● SALES PROMOTION
● ADVERTISEMENTS
● SCHEMES
● MEDIA
Schemes:

For Wholesaler
● Trade discounts of 8 % on purchas more than Rs. 50,000 worth
products
● With every 50 chocolates of one kind, 2 chocolates of same kind free.

For Retailer
● On purchase of 40 chocolates, 2 chocolates free.
● 5% discount on evry pack containing 20 chocolates of same kind.
● Special festive discount on Diwali and Rakshabandhan of 2% on
wholesale price.

For Customers
● 25% extra chocolates on DARK DELISH’s fruit and nut chocolates.
● Attractive discounts on special occasions.

DARK DELISH’S USP:

DARK DELISH’s chocolates contain oxidant chemicals mainly found in


pure cocoa that supply energy and helps in cardiovascular illness curing.
Every cube of DARK DELISH’s chocolate is a perfect blend of milk and
cocoa. Its price is a little high as compared to the other chocolate brands as
due to the quality ingredients used in the making of the chocolates.
Moreover, indigenous flavours of fruits, nuts and milk add to its value.

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