Cadbury vs. Future Group; Who'll blink first?

Whatever the reasons behind Future Group yanking Cadbury off it shelves, I doubt whether this move is going to make a dent to either of their respective revenues.

The quantum of chocolates in a Big Bazaar shopper's cart may not be substantial. Big Bazaar purchases are almost always for future consumption. I wonder what percentage of chocolate/candy sales in India tend to be for future consumption. If most candy/chocolate consumption were immediate, would they have been bought off stores like Big Bazaar? My guess is, no.

Cadbury in my opinion wouldn't care too much to be off Big Bazaar shelves. Though the nature of the tussle is puzzling, the sore point being better deals given by Cadbury to MNC retailers, I can't fault discriminatory deals by a manufacturer should one retailer give better sales for the brand over others. Surely this retailer deserves a better deal from the manufacturer. After all, Big Bazaar on its part gives better deals to its buyers, should they make purchases of greater value at their stores.

Comments

s4ur4bh said…
Hi Prof. Ray,

May be you are correct that chocolate sales are for immediate consumption but there are times when you buy larger packs.

It could be for gifting, storage at homes etc. This is the reason why these companies have larger packs. And my intuition tells me that this is a large chunk of their sales.

Availability at an important retail point such as Big Bazaar is not only about sales but also about visibility to the shopper. The availability by its nature makes the brand visible and helps in recall.

In my opinion, Cadbury's SHOULD care about their absence from stores.

Would be interesting to see more thoughts from you on this.

Thanks,
Saurabh Garg
http://www.saurabhgarg.com

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