Global chocolate market analysis, post

a major acquisition in the market

Client

A Leading Management Consulting Firm

Objective

The client wanted to understand the impact of a major

acquisition in the Global Chocolate industry, focusing on
specific areas where its client would be affected

The report enabled the client to provide strategic insights to its

client on how to maintain and further strengthen its position
Client
Impact

Enabled the client to map the position of the key players in the
industry and probable market position of the new entity

Porters Five Forces analysis highlighted the effect of acquisition

on competition level and potential entry barriers

Table of Contents

Strategic Analysis of the New Entity (formed after the M&A)

Global footprint, resilient product range and dominant market position
Quality control issues - A major concern area
Increasing presence into newer segments

Capitalizing strong position in emerging markets

Joint entity expected to protect and expand innovation pipeline; launch smaller
packages with a more economical pricing, and focus on emerging economies
Industry Landscape: Porter Five Force Analysis
Low threat from new entrants as launching a company would require huge investment

Very high rivalry within the global chocolate industry

Leading industry players have a lot of cash to spend, so intense competition
Margins are fairly similar for most companies
Competitor Comparison: Strategy and Market Position
Industry is at a level playing field overall with some regional variations

The new entity expected to introduce new products and improve existing ones
Has been targeting wellness sub-category
Most of the other players are at a nascent stage in terms of customizing their offerings
towards health and wellness needs of customers

Recommendations on Strengthening Market Position

Key Insights

One of the leading confectionery

companies in the world and fifth largest
player in the global chocolate market
Intends to achieve growth by leveraging
strong operating performance
Has been restructuring its business

segments across geographies to focus on

its core competencies

Key elements of Future Strategy:

Hedging against commodity prices rise
Invest in clever marketing approach
Achieve a better position in the
healthy products segment
Set up dedicated health and wellness
division

Focused on gaining competitive

advantage in sales and distribution over
its competitors in both developed and
developing markets
Most of the players are focused on
launching differentiated chocolates in the
market

Key Insights

Players have significant scale advantages

resulting in efficiencies in purchasing,
manufacturing, marketing and distribution
Generic and local brand food retailers
pose a threat to existing players

Seven major players account for more

than 70% of the world market
The industry is mature and categorized
by slow growth
High demand for product differentiation
Very high exit barriers

The new entity holds strongest market

position in terms of market share in the

global and developed markets
Not a strong foot-hold in emerging
markets

Feasibility Studies

Client

A National Association for Information and Communications

Technology (ICT) Industry in South-East Asia

Support the member companies in developing an understanding

of the Indonesias digital music, video and online gaming market,
by analyzing:
Objective

Market dynamics and prevalent business monetization models

Online customer segments and prevalent buying patterns
Business environment in Indonesia

Helped the client identify targetable consumer segments and

their digital media consumption behavior/preferences
Client
Impact

Provided intelligence on addressable market, key players across

the value chain and potential collaborators
Also, identified the successful business and revenue models,
and online payment gateways used in the country

Table of Contents

Country Analysis: Indonesias Business Environment Analysis

Limited liability company is the most common type of presence for a foreign investor
Corporations are taxed at a rate of 25%
10 regions designated as Special Economic Zones
Despite several terrorists attacks since 2000, Indonesia is politically stable
Government committed to a free-trade policy

Digital Consumer Market Analysis

Internet penetration is higher amongst males and younger consumers
Broadcast TV is the leading media in the country
Desktop PC and mobile phones are the most popular means of accessing the internet
Online Gaming Market Analysis
Industry expected to grow at a CAGR of 16.6% during 2010-15
Player 1 is the largest player in the country
XX games hold majority of the countrys online gaming market share
Sale of virtual goods is the most common monetizing method

Digital Music and Video Market Analysis

Value chain comprises of content creation, formatting, aggregation and distribution
Key players in the digital music include Player 1, Player 2, Player 3, etc.
Player X, Player Y and Player Z are leading players in the digital video industry
Prevalent business monetization models include subscription, direct sales, licensing
and bundling

Key Insights

The most common type of presence for a

foreign investor in Indonesia is by
establishing an Indonesian incorporated
limited liability company
Under the Indonesia Economic
Masterplan 2011 - 25, the country aims to
develop six Indonesia economic corridors

Of 22% of the internet population in

Indonesia, 15-19 age group comprises of
the most active users

Broadcast TV is the leading media in the

country with highest time spent on it
Ownership of an internet-capable mobile
phone is more than double to that of a
desktop or notebook computers

Key Insights

Indonesia is the third largest online

gaming market in the Southeast Asia
Online games are available in a number
of genres including MMORPG, Casual,
Web Games and FPS
By 2012 end, there were 11 online game
publishing companies in the country, with

6 new companies set up during the year

Some of the players in content

distribution include Player 1, Player 2,
Player 3 etc.
Online payment systems are in the
development stage with industry
witnessing new entrants
Digital music industry offers a variety of
revenue streams to the service providers