Chocolate Industry Partly Filled Paper

Introduction

This assignment deals with the organization whose current main product is at maturity stage in the market life cycle and its sales have been reduced, to sustain its market share the organization has to go for product development to defend it from its rivals.

The organization chosen for this particular scenario is CAMPCO (Central Areca nut and Cocoa Marketing and Processing Co-operative) Ltd, located in Karnataka, India.

Background of the organization

CAMPCO was founded in 1973 at Mangalore to support and mitigate the sufferings of areca nut and cocoa growers in the states of Karnataka & Kerala. Organizational principle for CAMPCO was co-operative. The organization is mainly into procurement, marketing, selling and processing of areca nut and cocoa. The company also provides guidance for farmers for growing areca nut and cocoa. CAMPCO started manufacturing chocolates in the year 1986. It produces chocolates & other cocoa products under its own brands & Nestle. The contract with Nestle has ended in the year 2000. The major chocolate bars which are produced by CAMPCO are “Turbo”, “Campco Bar”, “Treat” & “éclairs”. The major market for the CAMPCO rests in South India with an average share of 42%.

Sudden changes in the market consumption trends and advancement in the rival products and marketing strategies have led to the decline of the sales. The management have re-organised its strategies and decided to start developing new kind of chocolate which is infused with different mixed flavours.

An Overview of Chocolate Industry in India

The chocolate industry in India as it stands today is dominated by two companies, both multinationals. The market leader is Cadbury with a lion's share of 70 percent. The company's brands (Five Star, Gems, Éclairs, Perk, Dairy Milk) are leaders their segments. Till the early 90s, Cadbury had a market share of over 80 percent, but its party was spoiled when Nestle appeared on the scene. The latter has introduced...