Bengaluru: Mondelez India Foods Pvt. Ltd on Wednesday introduced Cadbury Fuse, a premium bar chocolate, pitting it against Mars Snickers.
Cadbury Fuse is a fusion of peanuts, caramel and chocolate cream, priced at 20 for a 25-gram bar and 35 for a 45-gram bar. Mars Snickers costs around 35 for a 50- gram bar.
Fuse is Mondelez’s fourth product launch this year. In August, it introduced Cadbury Dairy Milk (CDM) Marvellous Creations and CDM Silk Miniatures in India. In April, it launched two new types of biscuits.
“CDM Silk revolutionized the tablet segment. This is what we want to do in the countline (bar chocolate) segment now," Prashant Peres, director-marketing (chocolate) at Mondelez said in an interview.
While Snickers offers a few more grams for 35, Peres is confident of value for money with the Fuse.
Cadbury’s Dairy Milk is the biggest chocolate brand in the country and its Cadbury 5Star brand already dominates the non-premium bar chocolate segment. Mondelez accounts for over 65% of the 7,500 crore chocolate market in India, according to AC Nielsen’s research.
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The company plans to maintain its leadership position in the Indian chocolate market by focusing on segments where it’s doing well, while also launching new brands in categories where others such as Mars Inc and Nestle India are marketing aggressively.
Peres is unperturbed about rivals like Mars which have been in the premium countline space for long.
“With the Cadbury brand and with our ability in terms of understanding consumers, getting our marketing right as well as getting our distribution to ramp up, we’re very confident that we will be the ones to take charge of this segment," Peres said.
Rajat Wahi, head of consumer and retail at KPMG, agreed. “My sense is that extending into new categories where the competition already exists is easier because of their strength in distribution. They can easily leverage that to launch new products. If they were creating a new category, that’s quite challenging. But where a competitor has already built a category for you, to build on that is much easier," he said.
On 4 August, Mint reported that over the last year Mondelez India spent more on advertising and marketing, ramped up its launch scale, sharpened positioning on niche brands and piloted online sales to propel growth.
“Realistically, we want to quickly ramp up to taking total leadership of the countline space in the way that we have in tablets. Tablets we’re in excess of 80% (market share). Our ambition is to get there with countline also," said Peres.