NEW PRODUCT LAUNCH VIA PRODUCT

EXTENSIONS

A PROJECT REPORT

Submitted by Group - 3
Adrija Pal 21PGDM006
Chandrabali Saha 21PGDM027
Debarun Dey 21PGDM028
Priyanka Banerjee 21PGDM056
Raunak Dey 21PGDM061
Ritaprabha Chowdhury 21PGDM065
Shreya Sarkar 21PGDM078

In partial fulfilment
for
the award of the degree
of

Post Graduate Diploma in Management

at

INTERNATIONAL MANAGEMENT INSTITUTE (IMI) –

KOLKATA
Under the supervision of
Dr. Rituparna Basu

December 15th, 2022

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 INTERNATIONAL MANAGEMENT INSTITUTE

BONAFIDE CERTIFICATE

Certified that this project report “TATA CHOCOLATE” is the bonafide work

of Adrija Pal, Chandrabali Saha, Debarun Dey, Priyanka Banerjee, Raunak Dey,

Ritaprabha Chowdhury & Shreya Sarkar who carried out the project work under

my supervision.

MARKETING SUPERVISOR
DEPARTMENT Dr. RITUPARNA BASU

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 CONTENTS
Sl. Topic Page
No. No.
01 INTRODUCTION 4
02 PRODUCT PORTFOLIO OF TATA GROUP 5-7
03 INTRODUCTORY PRODUCT HIERARCHY 8
04 OUR CHOCOLATE MAKING PROCESS 9-10
05 UNDERSTANDING GAPS & INTRODUCING 11
PRODUCT EXTENSIONS
06 MARKETING PLAN 12-18
07 SWOT ANALYSIS 19-20
08 STAGE GATE MODEL 21-22
09 DURATION & COST EXTENSION 23-25
10 MAKING PROFITABLE MARKET 26
11 STP 27
12 PROBLEMS WITH EXTENSION 28
13 PORTER’S FIVE FORCES ANALYSIS 29
14 PESTEL ANALYSIS 30-31
15 COMPETITORS 32
16 CONCLUSION 32

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 INTRODUCTION
TATA group founded by
Jamshed ji TATA in 1868 is
an Indian multinational
conglomerate. We are one of
the biggest and oldest
industrial groups not only in
India but worldwide. We have
got several companies
operating under our banner of
the TATA group, each being
operated independently under
the supervision of its own
board of directors and
shareholders. A few examples
include Air India, Tata Chemicals, Tata Steel, Jamshedpur FC, Tanishq, TajAir, Cromā, Voltas,
Tata Communications, Tata Consultancy Services, Tata Consumer Products, Tata Elxsi, Tata
Motors, Tata Power, Titan, Trent, Indian Hotels Company Limited, Tata Cliq, Tata Projects
Limited, Tata Capital, Tata Starbucks, etc.
Tata Group, privately owned conglomerate of nearly 100 companies including
several primary business sectors: chemicals, consumer products, energy, engineering,
information systems, materials, and services. We are happy to announce that now the TATA
group has come up with its own range of dark chocolates for every age. It has its own varieties
for audiences with different preferences like Rich cocoa at 70%, pomegranate, Blueberry and
Hazelnut range. We have decided to call the new brand ‘TATA CHOCOLATES’ and are
looking forward to maintaining Integrity, Responsibility, Excellence, Pioneering and Unity in
line with the TATA group motto.
We aim to appeal to all the five senses of our consumers through our product with a primary
focus on the taste, touch and smell buds. Our high quality, chocolate has been made from real
cocoa butter that provides a velvety and smooth texture in your mouth. The smell of cocoa will
leave you craving for more. The chocolate makes a clean, crisp, sharp snap when broken which
is also an indicative of its quality.
From now on be it a gift for somebody or a gift for one’s self, TATA chocolates will become
their go-to-choice as they won’t find this feeling of being loved in any other chocolate.

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 PRODUCT PORTFOLIO OF TATA GROUP
• Tata Consultancy Services- TCS is a global leader in IT, digital and business services.
• Tata Elxsi- Tata Elxsi is a global design and technology services leader for
Automotive, Media, Communications and Healthcare.
• Tata Steel- Tata Steel Limited, with a consolidated turnover of US $32,836 million for
FY22 is the 10th largest steel producer in the world with an annual crude steel
production capacity of 34 MnTPA.
• Tata Motors- With US$35 billion in revenues, Tata Motors is a leading global
automobile manufacturer of cars, utility vehicles, buses, trucks and defence vehicles.
• Jaguar Land Rover- Jaguar Land Rover, part of Tata Motors since 2008, is Britain's
largest automotive manufacturer which designs, manufactures and sells some of the
world's best-known premium cars.
• Tata AutoComp Systems- Tata AutoComp provides products and services to the
Indian and Global automotive OEMs as well as Tier 1 suppliers.
• Tata Chemicals- Tata Chemicals is a science-led company with a portfolio that covers
basic and specialty chemistry products.
• Tata Consumer Products - Tata Consumer Products is a focused consumer products
company uniting the food and beverage interests of the Tata group under one umbrella.
• Titan- Titan is a leading player in the Jewellery, Watches and Eyewear categories with
several successful brands.
• Voltas- Voltas, established in 1954. operates in three segments - Unitary Cooling
Products, ElectroMechanical Projects & Services, and Engineering Products &
Services.
• Infiniti Retail- Infiniti Retail is one of India's leading Consumer Durables and
Electronics (CDE) retailer, operating under the brand name 'Croma’.
• Trent- Trent is one of the leading players in the branded retail industry in India.
• Tata Power- Tata Power is India's Largest Integrated Power Company, present across
the entire power value chain of conventional & renewable energy, power services and
next-generation customer solutions including solar rooftop and EV charging stations.
• Tata Projects- Tata Projects is one of India's fastest growing Engineering, Procurement
& Construction companies with experience and expertise in executing large, complex
industrial and urban infrastructure projects.
• Tata Consulting Engineers- India's leading integrated engineering consultant
providing concept to commissioning services.
• Tata Realty and Infrastructure- Tata Realty and Infrastructure Limited (TRIL) is a
100 per cent subsidiary of Tata Sons, and serves as a real estate and infrastructure
development arm of the group.
• Tata Housing- Tata Housing and Development Company is in the business of
residential property development.
• Tata Capital- Tata Capital is a trusted, customer-centric, one-stop financial solutions
partner catering to the diverse needs of retail, corporate and institutional customers.
• Tata AlA Life- Tata AlA Life Insurance Company (Tata AlA Life) is a joint venture
between Tata Sons and AlA Group (AIA).

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• Tata AIG- Tata AIG General Insurance Company is a joint venture between the Tata
Sons and the American International Group (AIG).
• Tata Asset Management- Tata Asset Management Private Limited (TAMPL),
established in 1994, is among the oldest asset management companies in the country.
• Tata Advanced Systems- Tata Advanced Systems Ltd. (TASL), set up in 2007, is Tata
Group's strategic entity in the Aerospace & Defence industry.
• The Indian Hotels Company- The Indian Hotels Company Limited (1HCL) and its
subsidiaries bring together a group of brands and businesses that offer a fusion of warm
Indian hospitality and world-class service.
• Tata SIA Airlines- Tata SIA Airlines, a joint venture between Tata Sons and Singapore
Airlines, operates under the flagship brand name Vistara, an Indian domestic full-
service airline. AirAsia- AirAsia (India), a joint venture with AirAsia Aviation Group
Limited, operates as a low-cost carrier in India.
• Tata Communications- Tata Communications is a digital ecosystem enabler that
powers today's fast-growing digital economy.
• Tata Play- Tata Play, formerly known as Tata Sky, is a joint venture between Tata
Sons and TFCF Corporation, is India's leading content distribution platform.
• AirIndia- Air India offers connections to over 70 international and 100 Indian
destinations. Air India Express is a low-cost carrier serving short and medium-haul
international destinations.
• Tata Global Beverages was renamed as Tata Consumer Products, following the
merger of the Consumer Products business of Tata Chemicals with itself. Home to
iconic brands, such as
✓ Tata Tea,
✓ Tetley
✓ Eight O’ Clock,
✓ Himalayan,
✓ Tata Salt and
✓ Tata Sampann,
The company that resulted from the merger of Tata Chemicals and Tata Global
Beverages Limited was given the new name Tata Consumer to better reflect the
company's wider range of products and its ambition to diversify beyond merely the food
and beverage industry (F&B).
Following the purchase, Tata Consumer is now among India's Top 10 F&B revenue
producers and among the Top 5 listed FMCG firms.
Food and beverage interests are represented by the company's product portfolio. JV
with Tata Consumer Products Ltd. India has cafés that are owned and run by Tata
Starbucks. NourishCo*, a joint venture between the firm and PepsiCo in India, sells
ready-to-drink non-carbonated beverages with an emphasis on improved wellness.
Total number of branded employees: 2,200
Women in the workforce make up 27.8%.
The company that resulted from the merger of Tata Chemicals and Tata Global
Beverages Limited was given the new name Tata Consumer to better reflect the
company's wider range of products and its ambition to diversify beyond merely the food
and beverage industry (F&B).

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 Following the acquisition, Tata Consumer is now among India's Top 10 F&B revenue-
generating FMCG players and among the Top 5 listed FMCG players overall.
• Tata Tea
✓ No.1 in the category by volume in India
✓ No.2 most trusted brand in hot beverages in India
✓ 1 in 3 Indian households consume a Tata Tea brand

• Tata Salt
✓ India’s first packaged iodised salt
✓ No.1 most trusted food brand and undisputed market leader in India
✓ 161 million Indian households served

• Tetley
✓ 45 million servings consumed every day in 40 countries
✓ 180 years of heritage
✓ No.1 in Canada and #3 in the UK

• Eight O’Clock Coffee

✓ Eight O’ Clock Coffee celebrated its 160th anniversary in 2019, a remarkable milestone
in the brand’s journey to deliver great tasting brews to Americans.
✓ Originally conceptualised by the Great Atlantic and Pacific (A&P) Tea Company, it
was one of the signature products when their first store opened in New York City.
✓ Roast & Ground coffee brand in USA
✓ 160 years of innovation
✓ America’s original gourmet and whole bean coffee

• TeaPigs
✓ Maintained #1 super premium brand position in the UK with 67% market share
✓ Secured B-corp certification which confirms that the brand considers people,
environment and profit equally when making business decisions.

• Himalayan
✓ No.1 natural mineral water brand in India
✓ Captive aquifer at the foothills of the Himalayas

• Tata Sampann
✓ Only national brand in pulses
✓ Blended spices specially crafted by celebrated chef Sanjeev Kapoor
✓ Trusted for staples and packaged foods

• Tata Gluco Plus

✓ The Brand has Continued expansion with new plants set up in Odisha, West Bengal and
Delhi NCR
✓ A new Lychee flavor was also launched.

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 PRODUCT HIERARCHY
Product hierarchy is important because product organization can help businesses with
inventory control and customer experience. A more organized purchasing experience can help
customers quickly locate the products they need according to features and price while exploring
competing products. A hierarchy can also help a company with internal audits, ensuring that
each product exists within the proper parameters
Need - The product need refers to its primary purpose for existing. Product need is the first
organization category and typically encompasses several classes or types of products
Family- A family of products typically refers to the core need each product satisfies for its
customers. A family can comprise several variations of products or services that fulfill the core
needs.
Class - A product class is a category within a company's overarching services
Line - Products within a product line typically have similar features or prices. These products
exist within a class of products and offer different options for customers
Type - Products within a product line typically have similar features or prices. These products
exist within a class of products and offer different options for customers
Unit - A unit is a single product that has no other product types dependent on it. Companies
refer to this as the stock-keeping unit (SKU).

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 OUR CHOCOLATE MAKING PROCESS
TATA Chocolates, the introductory product is
made to go through a lot of process to capture the
essence of dark chocolate and be a successful
launch. Following processes are followed:
Cocoa Cultivation: The cocoa tree (Theobroma
cacao), which grows within 20 degrees north and
south of the Equator and thrives in a mix of high
weather, rain, and shade, is the source of chocolate.
Each tree produces oval fruits, sometimes known as
pods that are 5–12 inches long. Each pod contains
30–50 seeds, which are known as cacao (or cocoa)
beans around the world.
Harvesting: When cacao pods turn a vivid
yellow/orange hue, they are ready to eat. The
ripening pods are harvested twice a year from the
trunk and largest branches on tiny stems, though they
can be harvested at any time. The pods are opened
and the seeds are extracted once they have been
sliced off. Each seed is approximately the same size
as an olive. Five columns of seeds (or "beans") are
encircled by a white pulp or pith. This pulp, known
as baba in Latin America, was used to manufacture fermented cocoa wine as early as 3,000
years ago.
Fermentation: Beans are cleaned by hand and the baba is left on to aid flavour development.
The cream-colored beans turn a purple colour when exposed to light. The beans are then ready
for fermentation in one of two ways: the "heap method," in which beans are stacked in mounds
on the ground in Africa, or a system of cascading boxes in Latin America. Banana leaves are
used to cover the beans in both procedures. Beans begin to take on colour and some of the
flavours associated with "chocolate" during the 2–9 days of fermentation.
Drying & Shipping: Fermented beans must be dried with care. They are set on wooden boards
or bamboo mats for 7 to 14 days in the hot sun, and are raked and turned over on a regular basis
to ensure even drying. The beans are sorted, packaged into sacks, bundled, and quality-checked
after drying. They are then transported and exchanged on a global scale. Alternatively, in direct
trade (for craft, bean-to-bar chocolates), the beans are sent directly to the chocolatier.
Preparing Cocoa Mass: Beans may be combined with various origins and estates for desired
qualities (or kept separate as "single-origin chocolate") after received by the processor. To
generate taste, beans are washed and then roasted at low temperatures. A procedure known as
winnowing separates the shells from the nibs (the bean's "meat"). Nibs are carefully milled into
cocoa mass (also known as cocoa liquor), a solid at room temperature product. When this paste
is put under great pressure, it produces two products: cocoa powder and cocoa butter are two
types of cocoa.

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Producing Chocolate: To make chocolate, simply blend cocoa mass with more cocoa butter
and a sweetener. The first step is to make a paste out of the various raw materials by mixing,
grinding, and kneading them together. Depending on the type of chocolate being prepared,
different ingredients are utilised. Only cocoa mass, cocoa butter, and sugar are needed to make
dark chocolate. Milk chocolate is created by adding milk powder. White chocolate contains
cocoa butter, sugar, and milk powder (but not cocoa mass or liquor). Some people don't
consider it authentic chocolate because it doesn't include cocoa mass.
Conching: Rolling, kneading, heating, and aeration are all part of the "conching" process. A
conche is a big agitator used to swirl and smooth a hot mixture. This is a crucial phase in the
production of consistent, pure, and tasty gourmet chocolate, as it is here that the final scent and
flavour are defined. For increased fluidity, soy lecithin and cocoa butter can be used at this
time. The chocolate is next refined until it is silky smooth (and the longer a chocolate is
conched, the smoother it will be).
Tempering & Moulding: The chocolate is now complete and ready to be processed further. It
must first be cut into blocks or drops (sometimes known as "pistoles") before being supplied
to a chocolatier. This approach necessitates "tempering," which entails gradually heating
chocolate to a specific temperature. Any aspiring baker or chocolatier can experiment with
tempering chocolate at home. The cocoa butter enters its most stable form during the tempering
process, which gives well-tempered chocolate its "snap," shiny surface, and smoothness.

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 UNDERSTANDING GAPS AND INTRODUCING
EXTENSIONS
As discussed before, Tata Group being a privately owned conglomerate of around 100
companies, one can state that it is a well-established brand. Yet, there are huge scopes in the
market that can be captured by Tata to increase the revenue of the company as a whole. One of
such scopes is identified by us as the chocolate market. The Indian chocolate market is mostly
captured by Cadbury, Nestle and Amul. Though these companies provide a wide array of
flavours of chocolates, yet the consumers have less options to choose among the brands. This
gap in the Indian chocolate market can be captured by the Tata Group at a great extent.
Tata Group has its name established in various categories, starting from Vehicles, FMCG,
FMCD and much more. But in the Indian Chocolate market, the Tata Group has not yet
intervened, though Tata has its own celebration packets, still they don’t yet have any proper
chocolate products. Introduction of Tata chocolates can be a huge stepping stone for the group
itself. Tata Chocolate would be a classical example of category extension.
Category extension is nothing but the usage of the parent brand name in a completely different
product category.
Introduction of Tata Chocolate might prove to be harmful for the whole brand as competing
with the already established brands in this particular market will not be very easy. The Indian
chocolate market is almost saturated with various big and even small players. Failure of the
Tata Chocolate can harm the brand group as a whole. But again, on the contrary, Tata Group
is one of the best and most established brands not only in India but in the international markets
as well. Hence, with the proper marketing strategies, the parent brand image can be enhanced.
Brand extension in this particular category can also permit consumer variety seeking. This
extension can also bring new customers into brand franchise and increase market coverage and
also revitalize the brand.
Though on certain aspects, it is tough for the brand to create this extension yet, brand awareness
of the Tata Group is very high among the consumers hence it will not need huge investments
on promotional and advertising strategies. Moreover, the Tata Group being one of the most
reliable groups consumers have faith on the brand as a whole, be it vehicles or FMCG products.
Cost of developing a completely new brand can also be avoided in the process of brand
extension.
Hence, it can be understood that, though there are a few threats of this particular category
extension, still the pros of the extension procedures can easily outweigh the cons, only if the
marketing strategies are followed properly.

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 MARKETING PLAN
The Product Mix refers to the diversity of products that a firm manufactures or offers
to the public. Manufacturers aim to capitalize on a brand's value and the performance of other
items in the mix, thus product lines frequently develop. Retailers stock a diverse range of
products to appeal to a wide range of clients. Four aspects make up the product mix: length,
width, depth, and consistency.
• Product mix width: The number of product lines or the diversity of products offered by
a corporation is referred to as the width of the product mix. Discount and department
stores that sell products in a variety of product categories are more likely to offer a
wider range of product lines. Manufacturers generate breadth in order to spread the risk
of a product becoming obsolete. Retailers who offer a wide range of products frequently
try to position themselves as a virtual one-stop shop.
For our company, Product mix width is Dark Chocolate.
• Product mix length: The number of goods in a specific product line is referred to as the
length element of the product mix. It's also known as the number of stock-keeping units,
or SKUs, that a corporation has in its product range. The number of unique brands
carried by a grocery retailer's soft drink product line, for example, is the length of the
line. Consumers will have more alternatives and access to a wider range of products if
the product line is longer.
For our company, Product mix lengths are 70% Rich Cocoa, Pomegranate, Blueberry
& Hazelnut.
• Product line depth: In the product mix, depth is connected to length in the sense that it
gives the buyer more options when choosing a product. The numerous ways you can
buy a specific product in a product range are referred to as depth.
Soft drinks, for example, come in 2-liter bottles, six- or 12-packs of cans, a 20- ounce
bottle, and various quantities. Dish soap is available in liquid, powder, or gel form. As
a buyer, these alternatives provide you even more options.
For our company, Product line depth are 40gm & 80gm.
• Product mix consistency: The relationship between products within a product line and
how they reach the consumer is referred to as the consistency element of the product
mix. For manufacturers, consistency relates to how closely different products'
production processes are related. The more constant the manufacturing, the more
efficient and cost-effective the operation. Consistency in a product mix makes
suggestive selling and close product recommendations easier for retailers. Different
products in the mix usually imply a different selling approach for that commodity.
For our company, it has been seen product mix consistency is high because all the
product lines will be using same production and distribution channels.

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Price Mix is the value of a product that is determined by the producer. It is the amount of
money charged for a product or service, or the total amount of money charged for the trade-
offs that customers make in exchange for the advantages of owning or using a service or a
product
The worth of the commodity as assessed by the manufacturers is known as PRICE MIX. This
includes judgments on the price level to be used; the discount to be granted and the credit
arrangements that clients will be permitted to use. Our pricing strategy reflects our product's
market position. The resulting price accounts for both the item's cost and the profit margin. We
must always remember that the sum should not portray the company as timid or greedy. Low
pricing stifles our growth, while high pricing forces us out of the market.
We will follow two types of pricing:
• Skimming Pricing
Initially, prices are set high to benefit out of consumer’s demand for a new product or
design at any cost. The Pricing for our 40gm and 80gm product is shown below.
• Bundle Pricing
This approach will be used to sell a bundle of items at a presumably lesser cost than if
the customers bought the items separately. Such bundle of several products is prominent
during holiday and festival season like Diwali, New Year, Valentine’s Day, etc. Rs. 150
for a bundle.
Net Weight 40gm Net Weight 80gm
Total Output 90000 Total Output 90,000
Cost Raw materials 1860000 Cost Raw materials 3720000
Works Cost 2323500 Works Cost 4647000
Cost of Production 3308500 Cost of Production 6617000
Cost of Sales 3783500 Cost of Sales 7567000
Net Profit (30% on Cost) 1135050 Net Profit (25% on Cost) 1891750
Selling Price 4918550 Selling Price 9458750
SP Per Unit 55 SP Per Unit 105

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Place Mix - TATA products are available all over the world. The main way TATA has
made a huge impact in the global market is just because of the distribution channel it has. The
company has made sure that their products are available all over the world and cater to a huge
customer base. The products are available both in the urban and rural areas.
Since this product is introduced for the first time in the market, it is being launched in the
domestic market.
One of the key reasons of Tata dark chocolates to get a spot in such an unstable market with
over-burden rivalry is on the grounds that it has a colossal distributive channel which covers
practically all pieces of our country. Tata Dark chocolates entire model chips away at gathering
the unrefined substance in mass and afterward keep it lumping down into little and little size
which at last reaches as a solitary unit to customer. There are two unmistakable channels
through which Distribution happens in Tata dark chocolates. One is the procurement divert
which is accountable for social event of unrefined components through various co- specialists.
The other is the dispersion divert which is accountable for coursing the finished-up thing to the
end clients. In the procurement channel Tata dark chocolates works up with ranchers then to
town co- usable society then it goes to assembling units then to organization warehouses,
discount wholesalers lastly to retailers. There is likewise another channel which comprise of
conveying and sending experts who helps in limiting the managerial and transportation costs.
The distribution of the product can be visible in different part of the nation.
• Metro cities- Tata is using its existing supply chain model for FMCG goods to deliver
the product to different metro cities, the product also is very attractive in this region
and the good reputation of this company in metro cities is a great opportunity for them
to expand the business.
• Local stores- In local markets Tata is one of the most reliable brands, this faith will
enhance the acceptability of this newly launched product. This product will be available
to all the local stores via retailers. The company will deliver the goods to the distribution
channel from where the local wholesalers will buy the goods and the retailers will sell
it in local level. Company is planning to reach all sort of shops in local area to capture
the market.
• Super Markets- In super markets Tata will directly deliver the product from the
factories nearby. This will help the supermarket owners to keep a good margin and also
to provide good discounts in the bundle of products. This will be good for the company
and the seller as well. Because promoting this chocolate in a bundle of star product will
increase its acceptability and circulation as well.
• Shopping malls are the one of the main targets for the company to reach the premium
and exclusive customers. Having exclusive and expensive variants with best quality is
the target of Tata chocolates. The premium chocolates will be sold in the shopping
malls and the supply chain model of existing products will be used in this case. Also,
this company will directly sale in the shopping mall.
• Small Stores Company will use the supply chain model of distributors to wholesalers
then retailers to enhance the local small shop sell. Usually, low range chocolates will
be placed in these shops.

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Selling and distribution channel
Tata delivers goods worth Rs 6 crore to over 5,00,000 retail outlets across country. Distribution
& value-for-money are the major strengths on which the brand’s popularity rests.
The marketing channel for consumer products consists of-
• Direct channel
The producer distributes the product directly to its customers.
• Retail channel
In this case, the producer distributes the product to the retailer and the retailer sells the
product to the customers.
• Wholesale channel
The producer gives the product to the wholesaler then it's being sold to the retailer and
then the retailer then sells the products to the customers
• Agent channel
It is a very long procedure where the producer gives the product to the agent and then
to the distributors and then to the wholesaler, after that the product is being sold to the
retailer and it reaches the customers.
In case of our product the TATA chocolate, the marketing channels are same-
We use the direct channel where the producers directly sell our chocolates to the customers.
The retail channel is also followed where the retailer sells the product in departmental stores
and local shops.
The chocolates are also being sold in bulk and then it's being carried out by the retailer who
reaches the customers.
We also use agents to sell our chocolates where the agents take the chocolate from the
producers and give it to the wholesaler from where the retailers again get the chocolates and
sell to the audiences Our TATA chocolates will also be sold in departmental stores and in local
shops.

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Promotion Mix is a process of advertising, PR, sales and promotion that helps the
company to establish their marketing objectives and it is also a way the organization
communicates with its customers.
In case of promotion mix, TATA chocolates can be advertised as follows-
• Advertising
The TATA chocolates can be promoted through the process of advertisement in
televisions and mobiles which will reach a huge group of audiences and TATA being
an established and trusted brand from ages, people will not hesitate to try the product.
• Public Relations
The selling of the chocolates by TATA can be brought into the market through the
process of guiding and attracting new customers by sending PR packages, coupon codes
and discounts.
• Posters and hoardings
The hoardings for advertisement of our range of chocolate around the construction site
and on roads with prominent feature designs will be eye catching for all age group
customers and our different flavours range will definitely attract most of them.
• Sampling
The process of sampling includes offering our range of chocolate to the customers
visiting the store for free as a sample to taste and give opinions about the taste and the
different flavours of the product which will help in two ways- a) it will help to find out
the preferences of the age groups b) people will come to know about the product
• Sponsorship
The alignment with another brand in terms of advertising the chocolate through
different events like sports, TV program, conferences etc which will reach a group of
audiences globally.
• Direct sales
The company can involve distributors that will help in selling the chocolates in bulk or
in numbers directly to the customers from stores and local shops.
• Movie appearance
Our range of chocolates can also be promoted through movie appearance in the film
industry. It is very common that common people get inspired a lot from movies and
series, and if we can capture that market, it will become a little easier to reach the group
of customers all over.

Multi-channel branding
✓ Social media and websites
Nowadays people are using social media all the time, if our
range of chocolates by TATA can be visualized in Instagram
and Facebook which will help in increase in sales overnight.
The website advertising can be done with Google AdSense.

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 ✓ Youtube and emails
Since lockdown, people of all ages are engaged in Youtube and it is also a big
platform to promote products through the digital creators and advertisements in
between the videos and the marketing can be done through emails by sending
promotional messages on behalf of our brand.
✓ Paid search
The chocolate can also be promoted through Search Engines like Google and
other engines.

Branding Strategy
• Huge brand value
Targeting the creation of a huge brand value is of utmost importance especially if it is
about chocolates. Brand equity is the "perceived value" and how often people choose a
brand over an alternative. Brand equity is important because it is a very strong
competitive advantage when people perceive that a brand is unique and consistent with
personal values. Therefore, brand equity refers to the value of a brand to consumers.
Valuable brands have some things in common. Brands are considered valuable if:
o High recognition value (people know who they are)
o Positively recognized (people look closely at them)
o Popularity (people actually buy and use products and services)
o Have loyal followers (customers are brand ambassadors)
A few steps essential in enhancing brand value are:
o Understanding target audience
o Being unique
o Improving consumer experience
o High standard design of chocolate and packaging
o Keeping tone of voice consistent

• A royal feeling, so affordable

The core theme of our product will be the establishment of an idea into the consumer’s
mind about a royal taste through TATA dark chocolates but at an affordable price. They
can enjoy this delicacy wherever they want with their friends, family, lover or even
alone and get a kick out of it that will instantly brighten up their day. Can be enjoyed
on every occasion and can be presented to every person dear to heart.

GROUP 03 17
 • Ranveer Singh and Deepika Padukone- the brand ambassador
Ranveer Singh and Deepika Padukone, the hit couple of Bollywood are two of the most
relevant faces nowadays. The couple can be made the face of TATA chocolate
campaigns and advertisements as besides their huge fan following their bond is a good
representation of the values that TATA dark chocolates is trying to establish and will
create a great lasting impression on their minds.
• Lower death rate
Studies have shown that dark chocolate is good for the heart and can extend its lifespan.
According to a study based on Harvard graduates, chocolate eaters lived about a year
longer than unspoiled ones. Those who ate one to three bars a month had a 36% lower
risk of premature death and performed best.
• Improve Digestion and stimulate kidneys
Contains polyphenols that can slow down GI function and increase water intake to
prevent diarrhoea. Cocoa, that's located in better quantities in darkish chocolate than
milk chocolate, is likewise an amazing supply of fibre, which promotes wholesome
digestion.
• Treat patients with anaemia
Good news for chocolate lovers. Iron in dark chocolate can have a positive effect on
anaemia. If you're struggling to get enough iron in your diet, chocolate is one of the
additional foods that can have a positive effect on iron levels.

Positioning
As for competitive advantage, we have got the name of TATA backing us. TATAs are known
for their ingenuity and value addition. The value proposition of our product lies on the lines of
getting a premium feeling at an affordable price. The raw materials are of guaranteed high
quality. Now the price is still quite affordable when compared to other premium chocolate
brands. If a perceptual map is created the product lies on the intersection point of a high quality
and higher average price range. The image that this the perfect and only gift for any occasion
will be drilled into the mind of Indian consumers. In one quote the brand represents ‘A royal
feeling, so affordable’. Finally, this position has to be effectively communicated to the
consumer.

GROUP 03 18
 SWOT ANALYSIS
STRENGTH
• Focus on brand: Instead of advertising particular goods, the focus has always been on
the brand TATA chocolates, which has benefitted the firm as a whole. This has resulted
in the development of goodwill and trust, which is mirrored in all of the company's
goods, including its chocolates.

• Distribution channel: TATA has a three-tier distribution approach for all of its products,
with items supplied at three levels (village, district, and state) and then delivered at
three levels (business, wholesaler, and retailer). This guarantees that TATA Chocolates
receives the most coverage possible.

• Focus on quality: TATA Chocolates has never cut corners when it comes to quality.
The organization takes every precaution to guarantee that all regulations imposed by
different health, safety, and quality regulatory bodies are followed.

• Continuous spirit of innovation: TATA has innovated in its chocolates by drawing

inspiration from renowned confectionery companies across the world. As a result, a
new category of dark chocolate and other tastes has emerged. Their marketing efforts
and packaging also show their innovative attitude.

• Product Diversity: TATA chocolates are available in many different flavours like 70%
Rich Cocoa, Pomegranate, Blueberry & Hazelnut. Thus, this draws a diverse group of
customers and aids in revenue growth.

WEAKNESS
• Changing tastes: Customer loyalty is exceedingly tough to achieve in a highly
competitive market like confectionery, because customers' tastes are always changing.
This results in significant research and development costs, as well as the necessity to
market new items on a frequent basis, which is an additional cost.

• Fluctuating raw material costs: TATA chocolates are made from cocoa, hazelnuts,
peanuts and fruits most of which are sourced from multiple locations across the world.
The prices at which raw materials are sourced are affected by global economic changes.

• Competition: Due to low barriers to entry, the confectionery sector has been extremely
competitive in recent years. In several nations, dozens of new chocolate producers have
developed. Despite their tiny market share, they have all had an influence on the
company's profitability.

GROUP 03 19
OPPORTUNITIES
• Healthy chocolates: Customers are no longer ready to compromise on health, resulting
in a growing demand for dark chocolate.

• Untapped rural markets: TATA Chocolate is still not a popular in demand product in
India's rural areas. With over two-thirds of India's population residing in rural areas,
TATA might improve its distribution methods and expand its market share.

• Internet and social media: Consumers will be able to get more engaged to the firm and
the items that will be launched on the company's social media accounts as digital
technology progresses. This will enhance customer base.

THREATS
• Competition: Many big players have major position in the market like Cadbury, Nestle,
KitKat etc. This type of competition decreases market share.

• Costly Material: Sugar, milk, hazelnuts, blueberries and cranberries are the main
ingredients along with cocoa in the production of chocolates. The rising cost of the
major component forces the firm to boost its retail price, which has an influence on
sales and profitability.

• Growing income level: People's purchasing power grows with their income level. As a
result, the value of the presents demanded increases. In this circumstance, youngsters
are more likely to desire a costly item such as a mobile phone or a bicycle rather than a
simple bar of chocolate.

• Costs and Price Rise: With the surge in fuel prices and transportation expenses,
distribution prices have risen. Purchasing and production expenses, on the other hand,
are very expensive. TATA chocolates will face a number of challenges over the years,
including an increase in cost and, as a result, product pricing, which will create a
vacuum for other companies to enter.

• Change: Possible change in demand for the product due to change in taste.

GROUP 03 20
 STAGE GATE MODEL
The product development process is steered through six key phases by the Stage Gate Process,
also referred to as the Phase Gate Process. Discover, Scoping, Define Business Case,
Development, Testing and Validation, and Launch are the stages in the Stage-Gate. Every two
steps have a gate where the process may be verified and validated. At this point, the team can
decide whether to move on to the next step or apply an iteration to the current step to make
improvements before moving on. The procedure was developed by Dr. Robert Cooper.
• Gate 1 and Stage 1
Gate 1 (Idea): This is where the Tata Choco Stick, the prototype, is located. The
proposal moves past Gate 1 and into Stage 1 if examination proves it to be workable.
As a result, the notion here passes analysis, and we proceed to the scoping step, often
known as the "go" stage in the Stage-Gate Process.
Stage 1 (Scoping): At this point, concepts for the Tata Choco Stick's features are
floated. The project team made an offer to the gate believing it contains all the
components a consumer would desire.
• Gate 2 and Stage 2
Gate 2 (Second Screen): In this second gate, an analysis reveals that the Tata Choco
Stick of 80gm had a calorific value of 450 calories but the health-conscious customers
were looking for an even healthier snacking with even lesser calorific value. This is
called the “kill” gate process and managers prompt for attention to the Stage 1 team.
Once the Stage 1 team has included that the 80gm will come at 270 calories i.e., 90
calories per stick, it passed through Gate 2.
Stage 2 (Build Business Case): In Stage 2, the team cross-functionally worked on
market research, customers’ wants and needs, pricing, and competition as well as
manufacturing techniques and processes. These processes once delivered will again go
through Gate 3.
• Gate 3 and Stage 3
The group implements the strategy created during the aforementioned phases by
creating a product prototype. Six criteria is met for this stage to be successful: time-
bound, detailed, quantifiable, and actionable. Continually changing according to the
state of production is the timeline.
Gate 3 (Go to Development): Here all is well with the Stage 2 team; however,
problems arise from the suppliers of the raw materials of Tata Choco stick. Again,
although part of Stage 2 is set, the Stage 2 team vendor problem becomes a “kill” and
doesn’t pass through Gate 3.
Stage 3 (Development): Here again, in the development stage, we had to see if the
manufacturing is hindered due to vendor problems. While the Stage 2 team was able to
run with designs and such, they pursed the final manufacturing process once the
managers of Gate 3 were given a “go” on the vendor situation.
• Gate 4 and Stage 4
Gate 4 (Go to Testing): In Gate 4, Tata Choco Stick went for analysis, and with all
types of validations received from the earlier stages, after the raw material issue from
the supplier end got resolved, the product was finally ready for testing. Problems at this
gate level are either given a go or killed and returned for improvements.

GROUP 03 21
 Stage 4 (Testing and Validation): The Stage 4 team ran with testing on initial product
testing to see what is missing. They could return back through Gate 4 for updates or
communicate with the Stage 3 team on when suggested and approved changes have to
be made. Successfully, in Stage 4, Tata Choco Stick passed all the validations needed
and was ready for launch. Only fact is that, once the product is launched in the market,
if the customers require any modifications as per real time approach, changes will be
required to be made from time to time, to meet customer’s needs and keep at par with
the market competition. But right now, the product is ready for launch.
• Gate 5 and Stage 5
Gate 5 (Go to Launch): Our product the Tata Choco Stick is ready to roll before it can
pass the team in Gate 5. This means everything from concept to marketing principles
to manufacturing and testing have been accurately and satisfactory resolved before the
product goes to a real-time launch.
Stage 5 (Launch): Here, our Tata Choco Stick is launched, and now new gates on
consumer acceptance and market needs have to be developed after a certain period of
time.
Chart:
Stage 1: Scoping Stage 2: Planning Stage 3: Develop
• Market Research • Product • Functional
• Voice of the Requirements Doc Specification
Customer (VOC) (PRD) • Product Design
• Analysis: • Product Roadmap Documents
✓ Market • Development Plan • Prototype
✓ SWOT • Financial Plan • Test Plan / Quality
✓ Competition • Updated: • Industrialization
• Product Concept ✓ Budget • Design Review
• Preliminary: ✓ Schedule • Financial Review
✓ Business ✓ Business • Pricing Plan
Case Case • Updated:
✓ Team ✓ Positioning ✓ Marketing
✓ Budget Plan Strategy
✓ Schedule • Preliminary: ✓ Launch Plan
✓ Positioning ✓ Marketing ✓ PRD
Plan Strategy ✓ Project
• Market ✓ Launch Plan Management
Requirements Doc ✓ Project Plan
(MRD) Management
Plan

Stage 4: Testing & Validation Stage 5: Launch

• Passed Tests & Certifications • Sales Tools
• Test Manufacturing Run • Product Messaging
• Product Documentation • Competitive Messaging
• Pricing Finalization • Launch Events
• Marketing & Sales Tools • Advertising
• Updated Launch Plan & Decision

GROUP 03 22
 DURATION AND COST EXTENSION
With a desire to celebrate the flavours of India, Indiluxe by Tata CLiQLuxury, and ASA by
TajSATS have collaborated to create a luxury edition collection of artisanal chocolates, an ideal
gift for Christmas Eve.
Infused with contemporary Indian flavours, they seek to build authentic connections between
ingredient and region, taking us on a sensorial journey around the country.
Description
Cocoa rich giant Choco sticks. Hand dipped style chocolate covered biscuits with
crunchy cookies. Packed in a box of 3 sticks with individual wrap. A shelf life of 12
month from manufacturing date.
• Hand dipped style
• Intense taste, rich in cocoa and with a lovely snap
• Crunchy sticks
• 90 Cal per serving.
Size
• 8 cm
How to use
• Dip it and lick it.
Main features
Resist oven temperatures up to 200°C.
Composition
• Cocoa from Ghana
• 70% Rich Cocoa: Sugar, cocoa butter, cocoa mass, vegetable fats (palm, shea),
emulsifier (SOYA lecithin). COCOA SOLIDS 70% MINIMUM.
• Pomegranate: Sugar, Cocoa Solids, Cocoa Butter, Pomegranate, Milk Solids,
Emulsifiers (442, 476).
• Blueberry: Sugar/ Cocoa Solids/ Dried Sweetened Blueberry 11%* (Blueberry
/ Sugar)/ Cocoa butter/ Almonds (4.5 %*) / Milk solids/ Emulsifiers (442/476).
• Hazelnut: Dark Compound (Cocoa Solids, Sugar, Hydrogenated Vegetable Fat,
Emulsifiers (E 492, E 322), Natural Vanilla flavour)), Hazelnut Nut, Glazing
Agent (Gum Arabic, Sucrose, Glucose syrup, Vegetable Oil, Citric Acid, Sorbic
Acid, Water.

GROUP 03 23
COSTING
• Technical cost
Mastering the mature technology and formula of chocolate production is the premise of
establishing a chocolate factory.
• Fixed asset cost
o Mechanical equipment cost
Chocolate Factory is indispensable to
production equipment, including the
common melting pot, refiner machine,
ball mill, chocolate moulding machine
and so on. The equipment purchased
from European and American countries
is generally more expensive. You can
consider purchasing equipment from
China, because the price of the machine will be lower and the quality is good.
For production output, if you have mature production experience, you can
consider large-scale production; if you do not have production experience, you
can consider small-scale production, such as 100 kg, 200 kg per hour, etc.
o Factory cost
After determining the production capacity, we can roughly determine the
production area of the factory. Then considering the convenience of
transportation, the availability of raw materials, the price of land and so on, we
choose a suitable land to build the factory.
• Labour charges
The amount of work will directly depend on how automated the machine is. Typically,
the production line for chocolate is totally automated, and the workforce is quite tiny.
Of course, we can choose semi-automatic equipment to lower the overall cost by
lowering the cost of fixed assets if the local labour cost is low.
• Duration
These mostly comprise the time spent constructing the factory, setting up the
machinery, producing and manufacturing the chocolate, etc.
• Sales-cost
The most significant one is successfully selling chocolate. You can offer it to
supermarkets, distributors, merchants, and other businesses. A reliable sales channel
can guarantee that the machine runs continuously and maximise its potential.
• Promotional cost
Advertising, public relations, poster and hoardings, samplings, sponsorship, movie
appearance, paid search.

GROUP 03 24
DURATION OF THE LAUNCH
Scheduling a project is a core of a
fruitful implementation of the planned
actions with priorities to time.
According to Wilson (2014), any
project’s schedule needs to be created
within the framework of workload and
the coordination and co-dependency of
different tasks. The proposed project
timeline includes the range of phases
from developing a product to initiating
its production. Therefore, the
successful end of the project is
anticipated to be a successful start of the
manufacturing of the new chocolate bar
by the company.

GROUP 03 25
 MAKING PROFITABLE MARKET
In case of promotion mix for TATA chocolate sticks can be advertised as follows-
• Advertising the TATA chocolates can be promoted through the process of advertisement
in televisions and mobiles which will reach a huge group of audiences and TATA being
an established and trusted brand from ages, people will not hesitate to try the product.
• Public Relations: The selling of the chocolates by TATA can be brought into the market
through the process of guiding and attracting new customers by sending PR packages,
coupon codes and discounts.
• Posters and hoardings the hoardings for advertisement of our range of chocolate around
the construction site and on roads with prominent feature designs will be eye catching for
all age group customers and our different flavours range will attract most of them.
• Sampling The process of sampling includes offering our range of chocolate to the
customers visiting the store for free as a sample to taste and give opinions about the taste
and the different flavours of the product which will help in two ways) it will help to find
out the preferences of the age groups b) people will come to know about the product.
• Sponsorship The alignment with another brand in terms of advertising the chocolate
through different events like sports, TV program, conferences etc. which will reach a group
of audiences globally.
• Direct sales The Company can involve distributors that will help in selling the chocolates
in bulk or in numbers directly to the customers from stores and local shops.
How to make it profitable?
• Customized Chocolate Gift box for special occasion like Christmas, Diwali, Eid, on our
official website.
• It can be differentiated from the rest of the competitors by way of different packaging
which comes in different shapes, sizes and colours.
• It also offers healthy choices like dark chocolate, sugar-free white chocolate with different
nut topping such as almonds, walnut, raisins, etc.
• A fusion of different products is created through collaboration with other brands such as
Oreo-flavoured Choco stick. Etc.
• We make sure that chocolates and ingredients that goes into making the chocolates, veerus
more towards the healthy sides than the decadent’s side with very less preservatives added
in the product.
• Create a distinctive chocolate experience by arranging different events and collaborating
with different confectionary stores such as Mio Amore, Cakes, Cookie Jar, etc.
Launch event: On the occasion of World Chocolate Day, Tata chocolate India Pvt. Ltd. has
rolled out #ChocolateCrazyWithSweet& healthytatachocolatescampaign. Executed in
collaboration with ScoopWhoop, the brand has launched a relatable campaign that resonates
with Gen Z and millennials. Tata chocolates India kick-started its
#ChocolateCrazyWithSweet&healthytatachocolatescampaign with tiny love letters to pay
homage to chocolate lovers on social media in the month of December, also celebrating the
festival of Christmas.

GROUP 03 26
 STP

Segmentation: The segmentation of TATA Chocolate is based on mix

of demographic, behavioural & psychographic and geographic factors.
• People of all age groups and demography irrespective of age, gender,
profile or income seemingly enjoy chocolates so the targeted market here
is quite huge with large flow of repeat orders.
• Behavioural aspect of customers also plays a significant role as people tend
to consume more chocolates when they feel stressed as chocolates seem to
have profound affect in boosting the happy hormones in our body with
several other benefits.
• Though psychological characteristics like personality, status, lifestyle,
opinions vary with each consumer but irrespective of all facts and figures
chocolates find itself in a special place in the food inventory of almost
every household imaginable.
• Product offerings are primarily centered around production capacity,
pricing of the various packs, packaging designs, storage facilities at the
outlets, occasional & situational demands, celebrity endorsements and
many other factors.
Targeting: TATA have targeted people from all age groups & irresistible
Chocolate lovers. Also, it has distinguished its product offerings to specific class
of consumer groups. For example, TATA Dark Chocolate, Rich Cocoa and
Hazelnut, pomegranate and Blueberry are affordable for everyone and are
irresistible. The bundling of two chocolates 40gm and 80gm are done to target
customers during festive occasions which can be used for gifting purposes. Also,
it comes at an affordable price of Rs.150 which is another added advantage for
the company as well as for the consumers (value-driven).
Positioning: TATA Chocolate have positioned itself as a symbol of good times
and a spontaneous brand that is carefree, meant for special as well as real
moments in life. They have successfully differentiated their products in terms of
target market as a dessert meant for the everybody. And for the sake of keeping
a convenient size for the product which is neither too small nor too big we have
come up with two sizes of 40g and 80g. So, our brand is looking forward to a
global campaign which focuses extensively on spreading genuine act of
generosity, kindness and happiness emulating the philanthropy and legacy of its
great leader Mr. Ratan Tata.

GROUP 03 27
 PROBLEMS WITH THE EXTENTION

Consumers often choose chocolate as their preferred sweet. The quality of the cocoa beans
determines the quality of the chocolate. The confectionery industry's best-selling item is
chocolate, which is produced in many varieties around the world. The increasing preference
for chocolate among consumers is a crucial element that ultimately helps the businesses
concentrate on their product development.
Tata Group has its name established in various categories, starting from Vehicles, FMCG,
FMCD and much more. So, they will face few challenges to establish themselves in the
chocolate industry.
• The biggest competitor of TATA chocolates is Cadbury. Cadbury already have a huge
consumer market for them, so it will be challenge for TATA to cater to the same market
and build a target consumer for them.
• TATA Choco stick has a coco content of 70%. But a specific percentage of people only
consume dark chocolate. So, it will be difficult for them to reach to the other consumers.
• Variety of flavours is limited in TATA Choco Sticks. Whereas, competitors like
Cadbury have a greater number of verities in their product line.
• Companies like Cadbury provides same quantity of chocolate but at a lower price. So,
it will be difficult for TATA to establish its place.

GROUP 03 28
 PORTER’S FIVE FORCES ANALYSIS
Competitiveness-Rivalry (High)
There are lot of competitors in the chocolate segment with the presence of various
foreign and home-grown brands such as Cadbury, Kraft foods and Amul dairy.
Each brand tries to control larger chunk of market share by launching products in
different price range, size or flavour. Tata is a reputed brand with large customer
base but rivalry is not simply restricted to cost of the item but also for quality,
development and variation. Promotion and advertisement techniques also plays
an important role.
Barriers to entry (High)
There are various barriers for the Tata brand as new entrants in the chocolate
segment. Few established brands such as Nestle, cadbury, kraft captures most of
the market as they understand consumer requirements, behaviour, taste which
requires time. Also, the current rivals are aware and has progressed with the
consumer commitment over their product over time. But Tata products are well
positioned and consumer have trust on their product which give additional
advantage to Tata chocolate in the market.
Bargaining Power of Buyers (Moderate)
There is high bargaining power of the consumer due to unbiased competition.
Switching expenses is low for customers as many companies sell a variety of
comparable items.
Bargaining power of suppliers (Moderate)
Tata prides itself on creating and maintaining positive relationship with their
suppliers. It has a large purchasing power and unique supply chain. Raw material
such as nuts, cocoa or other ingredients can be purchased in bulk from the supplier
which will give more bargaining power.
Threat of substitutes (High)
There has been an excellent risk of substitutes as there are replacements of some
of the Nestlé's product such as pasteurized milk and boiled water. There has been
health related complication noticed while consuming Nestle's chocolate which
will give an advantage to Tata to highlight healthy advantage of its chocolates as
an alternative.

GROUP 03 29
 PESTEL ANALYSIS
POLITICAL FACTORS
Any changes in the government or its policies are considered a political factor. Every
company is required to operate in accordance with the laws enacted by the government.
These laws and rules should be familiar to those who perform the organization's
functions. Every country's government is different in terms of policy, stability, and
major trade impacts. In this sense, any organization should carry out its operations and
design its strategic plan in accordance with the country's political issue. Every strategic
plan must account for the relevance of political repercussions so that an effective
strategy can be developed to ensure correct alignment, and the risk of project failure
due to political instability can be anticipated and mitigated through alternative options.
The TATA chocolate manufacturing industry in INDIA must assess whether the
country's political stability is relatively safe. When this organization intervenes in
practices that are not supported by the government, the effects of political pressures on
the sale of chocolate products and their manufacturing will be studied. From a political
standpoint, the government can intervene in operations that are not environmentally
friendly, and issues such as these will have an impact on chocolate manufacturers. As a
result of its democratic political influence, the company may take full advantage of low
production and sales volume constraints. As a result, there are political difficulties that
may damage the industry, and their consequences may only be mitigated if the company
is already equipped to deal with INDIA's political issues.
ECONOMIC FACTORS
Many people have lost their jobs as a result of the global slowdown caused by COVID-
19. As a result, consumers have far less money to spend on confectionery. People are
spending far less money on confectionery these days, which is a huge source of concern
for the company. The amount of income is relatively low, and global inflation rates are
high. As a result, the company is experiencing a drop in demand for its goods. This will
undoubtedly have a negative influence on the company's revenues. Due to a lack of
demand, the company has had to slow its production, which may have an impact on the
economies of scale of production, raising the cost of manufacturing. Climate change
has also had an impact on cocoa output, resulting in steadily rising cocoa prices. The
cost of producing TATA chocolates increases when cocoa prices rise, thus reducing the
company's profits.
SOCIAL FACTORS
TATA offers a vast variety of chocolates & confectionary. This brand is unique since it
offers a variety of chocolates with varying sugar levels. Consumers are growing more
health-conscious, and they desire chocolate that has less sugar. TATA offers a wide
range of chocolates to its clients. As a result, health-conscious clients may enjoy
chocolate that is lower in sugar. Furthermore, the tradition of giving presents on

GROUP 03 30
birthdays and festivals is growing, which is a good indicator that they will be able to
improve their sales in the future by implementing an appealing marketing strategy that
will appeal to a wide range of customers. Companies must thoroughly examine these
elements, as people's behaviours are rapidly changing in today's environment. As a
result, in order to retain, serve, and maintain its devoted consumer base, the firm must
continue the same pace. Furthermore, the population's proportion of young people is
declining, posing a major threat to the company.
TECHNOLOGICAL FACTORS
TATA keeps making changes in the products it sells, and as a result, it will be be able
to maintain client loyalty over time. It is always attempting to deliver innovative
offerings to its employees in order to attract new clients and improve income. It is
constantly improving its production technique in order to produce higher-quality
products while lowering production costs. It should always strive to enhance its product
offerings in order to please clients and differentiate itself from competition. The firm
also employs high-quality packaging to keep its products fresh, which is an important
consideration for buyers when purchasing any confectionery item.
LEGAL FACTORS
As TATA exclusively operates in India, it is subject to a variety of national rules, which
makes the company's operations challenging. It secures its goods through patents and
trademarks to keep competitors from imitating it. One of the key issues that the brand
has is dealing with the regulatory challenges that emerge in new markets.
Noncompliance with these standards may result in hefty fines for a firm, as well as ruin
the company's reputation. In addition, during COVID-19, a number of nations enacted
legislation to enhance worker safety. As a result, the corporation must ensure that these
rules are obeyed while also satisfying its employees.
ENVIRONMENTAL FACTORS
People's awareness of the environment has grown significantly, governments and
international organizations have enacted numerous legislations to address the problem
of climate change. Climate change has a negative impact on cocoa production, resulting
in higher cocoa costs, which raises the entire production cost of TATA's confectionary
products. In addition, the firm employs sustainable materials in packaging and labelling,
which helps to mitigate the company's waste problem. In addition, the company is
working to decrease the amount of water and energy used in its manufacturing process.
People nowadays evaluate a corporation based on its environmental efforts.

GROUP 03 31
 COMPETITORS
✓ AMUL
✓ CADBURY
✓ NESTLE
✓ FERRERO ROCHER
✓ LINDT DARK CHOCOLATE
✓ HERSHEYS

CONCLUSION
So, at the end one question remains, why should one come to TATA Chocolates when there
are so many more established brands out there? That’s because TATA thinks for its consumers
and breathes for its consumers. We will make sure that the happiness of chocolates reaches
every corner of the Indian society and the love that will be brought in with our chocolates will
be unlike any brand earlier. Our chocolates are tastier, highly affordable and superior. Each
bite will make consumers return again and again taking TATA’s ever lustrous bond with its
consumers to a whole new level.

-END OF REPORT-

GROUP 03 32