SWOT Analysis of Amul Chocolates [Step by Step SWOT]

SWOT Analysis of Amul Chocolates – Amul Chocolates SWOT Analysis focuses on (S) Strengths, (W) Weakness, (O) Opportunities, and (T) Threats. Internal Factors in the SWOT Analysis are Strengths and Weaknesses and External Factors in the SWOT Analysis are Opportunities and Threats.

SWOT Analysis is a proven management tool that helps brands such as Amul to assess the market of Amul Chocolates and its success against rival companies. Amul has been one of the Chocolates Manufacturer of the country.

Amul Chocolates is a product of the Chocolate Company Amul, which is the brand name of the Gujarat Cooperative Chocolate Marketing Federation. Since the green movement launched by Shri Verghese Kurien, the cooperative organization manufactures Chocolates and various Chocolate goods such as curd, milk, chocolate powder, milk spread and cocoa, among others.

Amul Chocolates also includes Amul Chocozoo and Chocolate Syrup. The firm reported a turnover of USD 6 billion in 2016 and is a licensed cooperative firm with very strong faith and recall in India. After being incorporated as a cooperative corporation in 1946, GCCF has assisted the growth and production of a number of dairy farmers by coordinating the acquisition, manufacturing, and selling of the chocolates they have supplied. Chocolates are one of Amul’s most popular items.

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Strengths in the SWOT Analysis of Amul Chocolates – Amul Chocolates SWOT Analysis

  • Strengths are described as what each company does best in its field of activities, which can give it the upper hand over its competitors. The attributes of Amul Chocolates are as follows:
  • Advertisement: Amul Chocolates has benefited immensely from the marketing strategies of the brand, including the corporate symbol, the Amul Girl, and its tagline Taste of India, thanks to its affiliation with Amul.
  • Continuous spirit of innovation: Amul takes influence from leading confectionery firms around the world and innovates in their chocolates. This has resulted in a new range of dark chocolate and chocolate syrup. The spirit of novelty is also expressed in their ad strategies and packaging.
  • Focus on the Amul brand: One approach that has benefited the business as a whole is that, instead of selling individual products, the emphasis has also been on the Amul brand. This has contributed to the creation of credibility and confidence expressed in many of its products, including its chocolates.
  • Distribution channel: Amul follows a three-tier distribution system for all its products, where their goods are manufactured on three levels from village to district to state and then sold on three tiers, including business, wholesaler, and retailer. It means optimum coverage for Amul Chocolates.
  • Focus on quality: Amul Chocolates has never sacrificed consistency. The company takes every practicable measure to ensure that all requirements imposed by the different environmental, protection and consistency regulatory bodies are completely complied with.
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swot analysis of amul chocolates

Weaknesses in the SWOT Analysis of Amul Chocolates – Amul Chocolates SWOT Analysis

Weaknesses are used to refer to situations that the company or the brand wants to change. Many of the main drawbacks of Amul Chocolates are as follows:

  • Lack of significance: Amul has never given adequate attention to its chocolates, and the vertical segment has always been considered to be of low value, with the company preferring to concentrate on butter or cheese.
  • Lower number of variants: relative to rivals such as Cadbury, the number of variations of chip chip chocolate is small. It contributes to dissatisfaction among consumers who, given the fact that chocolate is better in quantity and consistency, do not choose it brand.
  • High marginal selling cost: the demand for confectionery is intensely competitive and the transaction is targeted towards an opportunity to buy behaviour. It ensures that only advertising can cause sales. However, the marginal expense of marketing is small and so the number of chocolate ads is limited.
  • Poor differentiation: the consumer is unable to differentiate between different chocolate products as the segment does not have anything to give in terms of a clear distinction in flavor or texture.
  • Focus on a regional market: most of Amul ‘s goods are linked to Chocolates and the source is only a single city, Gujarat. Procurement and management of chocolates and the production of chocolates is a supply chain challenge.

Opportunities in the SWOT Analysis of Amul Chocolates – Amul Chocolates SWOT Analysis

  • Opportunities apply to all environmental ways that affect the company on which it can leverage to maximize its profits. Some of the possibilities include:
  • Healthy chocolates: People are becoming more mindful of their health, generating a growing demand for low-calorie and sugar-free chocolate. Dark chocolate is also a favorite choice for customers. These are aspects that Amul Chocolates can look into.
  • Steep growth opportunities in developing economies: the global demand for confectionery had a sales value of $184,056 million in 2015, and growth of CAGR 3.4% is projected to hit $232,085 million by 2022. Industries should capitalize on that.
  • Chocolate flavored products: Amul should look at chocolate flavored products such as chocolate paste, cream biscuits, chocolate cookies, etc. as chocolate is a popular favorite among children.
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Threats in the SWOT Analysis of Amul Chocolates – Amul Chocolates SWOT Analysis

Threats are those environmental factors that can be harmful to business development. Several of the risks are as follows:

  • Competition: Amul’s major rivals are Perfetti Van Melle, Mars, Cadburys,  Lindt, etc.
  • Low barriers to entry: the demand for confectionery has small barriers to entry, with the result that many new entrants are joining the demand. There is still a large market for handmade chocolates today, which is proving to be a challenge to packaged chocolates.
  • Government policies for chocolate manufacturing companies can be  major threat.

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"SWOT Analysis of Amul Chocolates [Step by Step SWOT]." Projects4MBA [Online]. Available: https://www.projects4mba.com/swot-analysis-of-amul-chocolates/2402/. [Accessed: October 30, 2020]
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