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It is the primary project on Cadbury Chocolates. The main objective of this project is to acquire
knowledge of understanding, analyzing and prepare report on companies marketing strategies. In
order to prepare this report we divided the report in two parts ± data collection and analyzing of
data. We have collected data from various sources like company website to collect information
on company history and industry structure, website of Nestle and Amul who are the major
competitors of Cadbury in India, we did a small survey company dealers and customer survey in
order to know more about the decision making process of the company, annual report of the
company was to analysis the financial status and growth of the company in last four years i.e
2005-2008. All this data was collected in order to conclude the company¶s performance and
decision marketing strategies from time to time to sustain its market share from time to time.
Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and
Cadbury creates a global powerhouse in snacks, confectionery and quick meals.

With annual revenues of approximately $50 billion, the combined company is the world's second
largest food company, making delicious products for billions of consumers in more than 160
countries. We employ approximately 140,000 people and have operations in more than 70
countries. Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie,
chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful
combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep
coming back into the fun filled world of Cadbury. Cadbury Dairy Milk has been the market
leader in the chocolate category for years. And has participated and been a part of every Indian's
moments of happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds 30% value
share of the Indian chocolate market.c In the early 90's, chocolates were seen as 'meant for kids',
usually a reward or a bribe for children. In the Mid 90's the category was re-defined by the very
popular `Real Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in all of
us'. It appealed to the child in every adult. And Cadbury Dairy Milk became the perfect
expression of 'spontaneity' and 'shared good feelings'.

Currently there are number of competitors in chocolate industry Cadbury in order to increase and
sustain its market share needs to innovate some new products company should use more
marketing tools to advertise its products and improve on it distribution network so as to make all
its products available across the country. At the same time Cadbury should come out with more
attractive gift packs more during the festive when people buy chocolates to give as gift to family
and relatives. At the end we have come up with some suggestions that Cadbury to take up sales
promotions techniques, provide good commission to the dealers, improve distribution network
and makes all Cadbury products available for the consumers and innovate and maintain the
quality of Cadbury chocolates so to sustain their market share in chocolate market.

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 is a British confectionary company, and it is the industry's second-largest company
after the combined Mars-Wrigley. It was founded by John Cadbury back in 1824. John Cadbury
and his brother Benjamin after realizing the potential of the business formed a company and in
1853 they received the Royal Warrant as manufacturers to Queen Victoria. Cadbury is today a
global brand making its presence felt in all parts of the world. Cadbury has been acquired
by Kraft Foods, which bought a whopping 71% of its shares before sealing the deal in February
2010. Cadbury employs over 45,000 employees and has been accounting for 12% growth rate
over 5 years and accounts for 11% of the market share in the global market.

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Chocolates which use to be considered unaffordable till the 80¶s, are now considered mid-priced.
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Chocolate market is estimated to be around 1500 crores and is growing at 18-20% per annumc

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The development of strong brands has always been a feature of the confectionery market. The
market for chocolate bars is highly competitive. There are a small number of large firms in the
industry - Cadbury, Nestlé and Amul being the most well known. Many of the brands in the
market have been in existence for a long time and have a high amount of brand loyalty. Openings
for new products therefore are limited. There are many examples of products that have been
launched and which have been withdrawn because they could not sustain long term sales
success. The market for certain types of chocolate bar has changed in recent years. The growth of
the Dairy Milk chocolate became popular as people ate chocolate on the go as opposed to sitting
down in a room with a traditional bar of chocolate. Companies had to respond to these changes.
Rowntree (now owned by Nestlé) changed the shape of their Munch bar and Cadbury brought
out a rival bar called Bonbon. Both of these were designed to exploit this growing market. The
market is still changing but using chocolate as a snack as opposed to sharing a bar amongst a
family or giving chocolate as a gift is still a growing part of market. c

Cadbury came up with the 'Dairy Milk' concept which was developed after market research
identified the growth of snacking and a definite gap in the market for a more chocolaty snack. A
number of ingredients were devised and tested following a survey which questioned consumers
about their snacking habits and preferences. A research and development team was then asked to
develop a number of product recipes which addressed the needs expressed by consumers. Not all
products successfully emerge from the product development phase. Research and development
involves combining various ingredients to develop potential new products. Considerable
development time was spent on Dairy Milk, carefully engineering the ingredients in order to
deliver the right balance of chocolate, food elements and texture. More than 250 ingredients were
tried and tested in various combinations before the recipe was finalized.

Today Cadbury has four major products at this price point which are as follows:
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Cadbury¶s Dairy Milk (CDM):

Cadbury¶s Dairy Milk is the flagship brand of Cadbury¶s not only in India but world wide. CDM
is the single largest selling unit in India. It has annual sales to the tune of Rs 200 crore. CDM not
only accounts for 30 per cent of the total chocolate market in value, but commands nearly 26 per
cent in volume terms and close to 30 per cent of Cadbury¶s annual turnover. Moving from a
predominantly adult positioning in the days of the legendary dancing girl ad, to the teens and the

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tweens, when the Cyrus Broacha ads hit the airwaves, CDM has made a long sweet journey. In
spite of the new categories being explored by Cadbury, its star brand remains Cadbury Dairy
Milk (CDM) which continues to corner almost 30 per cent of the chocolate market. Cadbury
dairy Milk bar is the single largest selling JKU of Cadbury.

As an international brand, Cadbury Dairy Milk carries the same distinctive image all over the
world. Wherever you buy a bar of Cadbury Dairy Milk the pack design will be exactly the same,
only the language will be different. The famous slogan "glass and a half of fresh liquid milk in
every half pound" with the picture of milk pouring into the chocolate bar, is one of the all-time
greats of British advertising.

Cadbury 5star (Crunchy):

Cadbury 5 Jtar is unique because of its format and any communication highlighting this
uniqueness, made it even more alluring to the TG. From 'deliciously rich, you'd hate to share it',
to the 'lingering taste of togetherness' & 'Joft and Chewy 5 Jtar', the communication always paid
homage to the product format Cadbury launched 5 Jtar Crunchy in 2005 to give the chocolate
lovers one more reason to join the 5 Jtar fold. 5 Jtar Crunchy has the same delicious Cadbury 5
Jtar with a dash of rice crispies. The variant was such a run away success that 5 Jtar¶s market
share jumped by almost 50% post it¶s launch! Cadbury now aims to continue the upward trend
for 5 Jtar. This different and delightfully tasty chocolate is well poised to rule the Indian market
as an extremely successful brand. One of the unique features for 5 Jtar¶s popularity is the
delicious dual (5 Jtar is an exemplary combination of Chocolate & Caramel) eat experience that
it provides to the consumer.

Cadbury Perk:

Cadbury Perk began its journey in 1996 as the Indian market started to get global competition in
the chocolate market. It is renowned to have been the first wafer chocolate brand in India. The

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light, crisp wafer and chocolate construct targeted the casual snacking space, traditionally the
domain of chips and salty wafers. It was a quick light snack. It was a quick light snack.
On the back of popular advertising, Perk became the delicious µanytime, anywhere¶ light snack.
Its unique brand of advertising that features bubbly, mischievous teenagers who get out of
µstuck¶ situations with a Perk ensured its popularity among its prime consumers, the youth. In
time, as the messaging progressed the offerings became varied. Value for money brands
increased the competition in the wafer chocolate segment. Cadbury Perk stepped up with these
changing times and consumers saw the dawn of Perk XL , Perk XXL , Perk Jlims and Perk
Minis. Cadbury Perk has kept pace with the evolving market with the launch of a lower price-
point offering. One of the key players in the Indian chocolate market and Cadbury¶s
representative in the chocolate wafer biscuit category, Perk is poised for growth with it¶s
capability to expand the chocolate market and strong franchise of loyal consumers.

Cadbury¶s Temptation:

Cadbury¶s Temptation is premium chocolate brand aimed for high value consumption. Various
variants available are Almond, Rum, Cashew & Orange. Cadbury¶s temptation is priced at Rs. 40
Cadbury¶s Celebration Cadbury India launched its premium Celebrations range, which contains
traditional Indian dry fruits wrapped in Dairy Milk chocolate. This gifting option combines the
pleasure of giving away dry fruits ² which Indians traditionally consider a premium, healthy
gift ² with chocolate. Cadbury now has 90 per cent market share in this profitable segment.

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Cadbury¶s chocolate brands registered double-digit growth in 2002, touching an astounding
19 per cent in the second half of that calendar year. Getting the power brands right was the first
priority, so genuine re-launches of the products were made.
However, the growth rate was declining after that. The growth went down from 19 per cent
in 1999 to 12 per cent in 2000 to single-digits, with seven per cent in 2001. If it staged a smart
recovery to nearly 10 per cent in 2002, it was largely on the back of Chocki and the revamped
power brands.
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5 JTAR:
Consumer feedback suggested that the old 5 Jtar was too chewy, and people complained of it
sticking to their teeth. It was made softer and melted easily in the mouth & introduced as 5 Jtar
Crunchy

PERK:
Perk was made much lighter and the size of the bar increased to match Nestle¶s Munch. Perk
had been under fire from Nestle¶s deadly duo of KitKat and Munch, but after the relaunch, its
marketshare is two per cent more than KitKat¶s. And, the five-year-old brand is now almost as
big as the decades-old 5 Jtar in size, both in the region of Rs 50-55 crore.

HEROEJ:
Packaging innovation has played a vital role in revamping of various Cadbury¶s brands.
Heroes brand is simply a multi-pack with miniatures of all its most popular brands in a single
outer case.
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If a company is to sell a new product it has developed, choosing the correct price is vital. If the
price is set too high it may be more than the product¶s target customer can afford, more
expensive than similar products sold by other companies, meaning that few will be sold.
However, if it is set too low, the company will make less profit and customers may think that the
product is inferior to similar products at a higher price. There are many different pricing
strategies, and some companies use mark-up pricing to decide the price of their product. This
means they take the average cost of making each product and add on a percentage of the price as
profit. The percentage added will depend on several factors, for example how much other
companies charge for similar products and the image of the product. If a business has developed
a product that they want to have a luxurious feel, seem exclusive and special, it is likely to have a
higher price.cc

After the roaring success of Nestle¶s Munch and Chocostick, Cadbury¶s empire struck back hard.
The Rs 5 price point accounts for more than half of all chocolate sales. Nestle had seized the
initiative at this price point, with its launch of Munch, now a roaring success (and the largest
selling product at that price point). Today, Cadbury has four products at this price point: CDM,
Perk, 5 star and Gems ² and the five-rupee CDM bar is its single largest-selling JKU.

³This is a potent price point in India, because the average purchasing power is abysmally low,´ is
what industry analyst have to say. Nestle kicked off one of the biggest success ² the liquid
chocolate category with its brand Chocostick priced at Rs.2 ² three months ahead of
competition. Cadbury did react with Chocki, priced at Rs 2, expanding the concept of
sachetisation to new frontiers. Chocki has been the single biggest growth driver for Cadbury as
well as the entire chocolate category. The novelty of the format endeared itself to the existing
customer. In less than one year, it constituted nearly 10 per cent of the total chocolate market,
split equally between Cadbury and Nestle. Volume led growth strategy Cadbury has followed a
well-planned strategy of fuelling volume growth by introducing smaller unit packs at lower price
points. Jimultaneously, the company seems to have astutely juggled with the larger pack sizes
and raised prices to a degree higher than what appears at face. The strategy has driven volumes
in the last two years and we expect the volume growth to continue in the next two years.

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Based price- This is a price that is nearly the same as the competition has charged.

Loss leader - Price is below the true cost of the product to encourage consumers to buy product.

Penetration or destruction price - This is a low price to encourage loyalty and to gain market
share. Later the price is raised

Cost plus price - Cost of product plus a markup of profit.

Psychological price - This is when a price is set at e.g. INR 6.99 rather than INR 7.00 so it
encourages people to think it is cheaper.


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Cadbury has followed a well- planned strategy of fuelling volume growth by introducing small
unit packs at lower price points. Jimultaneously, the company seems to have astutely juggled
with the larger pack size and raised price to a degree higher than what appears at face. Cadbury
went for base pricing since it was also being used by their competitors. It was a market oriented
strategy, so they set the R.R.P. at 33p. They did this because if they priced it too high then no
one would buy it since they could purchase other chocolate bars for less. They couldn¶t set it too
low because they have an oligopolistic market. Hence, if they priced it too low, for example 20p
they would be selling at a price less than the rest but then the other companies would also have to
lower their prices because of which the overall the prices of chocolates would fall and the profits
of all the companies would go down. Jo Cadbury priced the chocolate bar appropriately but not
too low so Cadbury still earns a fair bit of profit. The price would never really change throughout
the life cycle of the product since there are lots of other brands which are also selling their
products of the same category at similar prices.

Different people have different level of sensitivities when it comes to prices. Jome people prefer
to buy without caring about the fact that they could get a better deal and some other always want
to land up with the best deal. This logic applies to Cadbury Dairy Milk just a tiny bit because
people don't look for the best buy on a chocolate bar because it is an impulse buy. An impulse
buy is just when you walk in a shop and buy something quickly without much thought before the
purchase. This means that large quantities of Dairy Milk should be sold for the company to break
even. The firms will then in turn use flow production and benefit from economies of scale. This
will help them by saving money and time because they will be buying and making in bulk. From

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my findings I have seen that Dairy Milk has under charged people for their chocolate bars. Dairy
Milk could have increased the price and still got the same amount of sales because not many
people care how much their chocolate bar costs since most of these purchases are impulse
purchases. Jo a slight increase in price could have been more beneficial since Dairy Milk has to
sell a lot to breakeven, even though Cadbury have very good economies of scale.cc

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Cadbury has 5 company owned manufacturing units along with 4 sales offices located in India
with its Head office located in Mumbai. The manufacturing units are located at:

ëc Thane
ëc Induri (Pune)
ëc Malanpur (Gwalior)
ëc Bangalore
ëc Baddi (HP)

These factories churn out close to 8,000 tonnes of chocolate annually.

The sales offices are at:

ëc New Delhi
ëc Mumbai
ëc Kolkata
ëc Chennai

Distribution, in the case of chocolates, is a major deterrent to new entrants as the product has
to be kept cool in summer and also has to be adapted to suit local tropical conditions.
Cadbury's distribution network used to encompasses 2100 distributors and 450,000 retailers.
The company has a total consumer base of over 65 million. Besides use of IT to improve
distribution logistics, Cadbury is also attempting to improve distribution quality. To address
the issues of product stability, it has installed VIJI coolers at several outlets. This helps in
maintaining consumption in summer, when sales usually dip due to the fact that the heat
affects product quality and thereby off take.
To avoid cannibalization of its higher priced products from lower priced ones, Cadbury is
setting up two separate distribution channels ± one for CORE business & other for MAJJ
markets, with different stockists, wholesalers and retailers. One set will be dedicated to
Cadbury¶s high-end products and traditional chocolates. The other will cater to the mass
market brands namely Bytes, Halls, Eclairs etc ² all products priced below Rs 3.

Today, Cadbury's distribution network reaches out to six lakh outlets each for its chocolate &
confectionery brands (i.e. total reaching12 lakh outlets).

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ëc Retail outlets ± shops, supermarkets, garages

ëc Vending machines ±train stations
ëc Restaurants and cafés

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ëc Cinemas, theatres, theme parks

ëc Travel ± buffet cars, on board airlines, motorway service stations

Chocolates are easily available at all types of stores ranging from Kirana Jtores, Gift Gallerires,
Chemists, Canteens, Jupermarkets etc. When you go to a store the chocolate counter is easily
identifiable and is usually located near the cash counter. Chocolates are products that are bought
mainly on impulse and hence they are strategically placed at positions where they would be able
to gather maximum attention.

90% of the chocolates are sold by Cadbury directly to the retailer due to the problem of melting
and the rest 10% of the produce follows the conventional distribution channel.

Cadbury India employees the bottom 2 distribution channels or networks.

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ëc Business capacity and salesmanship

ëc Experience and previous expertise in the line
ëc Credit worthiness
ëc Financial capacity and willingness to invest in the line
ëc Jocial status
ëc Good relation with the customers, especially bulk consumers and and sub-dealers.

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Companies have to plan effectively for their advertising and promotions because a slight
misunderstanding or misinterpretation of company views can compel consumer to have a
different perception so in order to remove this communication barrier a lot has to be planned. Jo
under this section we will try to understand.

Today the brand Cadbury has become synonymous with chocolate. The company has moved its
focus from targeting the youth to the adults and young adults.

The basic purpose behind advertising is:

ƒc To position the product as a ³high quality brand´ with a wide range of offering providing
at anytime.
ƒc To create awareness about new flavors
ƒc Induce consumer trails. build corporate image
ƒc To undertake competitive advertisement

Cadbury India has very well captured the Indian advertising scenario as far as the chocolate
Industry is concerned. It rules chocolate advertising on television. It is also clearly evident that
the number of advertisements goes up during festival season which is from Jeptember till mid-
November. Approx. 70-75% of the advertisements of chocolates on television are of Cadbury
chocolates as a whole and 30% out of these are of CDM alone.

The brand has also been successful in roping in some of the biggest celebrities. From Preity
Zinta, Genelia D¶souza to the living legend Amitabh Bachan, the brand has tried to put its best
foot forward.

The CDM advertisements:

In early 90¶s the advertisement µ Real Taste of life¶ was used wherein the ad tried to shift the
focus of CDM which was earlier just for kids to adults and young adults. Through this campaign
the CDM became the perfect expression of good feelings and spontaneity. The ad that is best
etched out in the minds of the people under this campaign is the girl dancing on the cricket field
celebrating the victory of her lover.

After this campaign the horizon was further widened and the focus of the product was being
shifted to the masses at large. The campaign was µ Khane Walon ko Khane ka Bahana Chahiye¶.
The ads under the campaign were made so as to make chocolate acceptable in the society for
adults and masses.

After this the µPappu Paas Ho Gaya¶ campaign was taken and the CDM was being showcased as
a product that one eats while celebrating any occasion.

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The latest advertisement are those which maintain the slogan µ Meetha hai Khana¶. These ads
have been made once again to celebrate pay day and try to show that a CDM is a must for every
occasion.

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The Indian FMCG sector has been the outperformer for some last years. In 2008 when almost all
the stocks were tumbling on Dalal Jtreet, the one sector which completely outperformed the
market was FMCG. Despite sensex almost lost 50 percent but FMCG only lost around 10
percent. This sector has seen strong gains from 3000 in 2003 to 21000 in 2008. Hence we believe
FMCG is strong and defensive sector and one should consider this sector for his/her portfolio
and invest some amount of it seeing the euro crisis at present.

CADBURY INDIA Ltd. deals with variety of products but they are leader in chocolates. The
Indian chocolate market is growing at an rate of nearly 20 percent and Cadbury india enjoys the
lions share of 71 percent . Cadbury is the largest confectioner in the country with turnover of
around Rs 2000 crore and annual sales growth being 20 percent. NEJTLE and AMUL are its
biggest competitor but they are lagging behind. But if Cadbury is ahead of these companies then
its mainly due to huge amount it spends on advertising, marketing and distribution channel. And
yes It¶s also the oldest in the market.

As we analyse the financial statement of the company over the last few years Cadburys share
capital has increased by issuing shares to public in lieu of fund. It can be seen from liabilities
side in balance sheet that secured loans have increased from 1.28 Cr in FY07 to 32.02 Cr IN
FY08. Jecured loan is issued against some asset. Asset is kept as collateral security. Here
Jecured loan must have been taken to secure the creditor. Cadburys total debt has increased
which indicates firm owes to outsiders. It has increased from 8.76 % in FY07 to 41.70% IN FY
08.

If we go to assets side inventories have increased from 98 in FY04 to 222 in FY 08 with 151 in
FY 07. This can be seen from inventory turnover ratio also . it has 7.86/12 months stock with it.
Which mean an inventory of 45 days which is great. Capital work in progress has also increased
a great amount, almost making it five times of its previous year. From 25 cr in FY07 to 125 cr in
FY08. More the working capital less financial strain company experiences. It infact shows best
position of a company. It reveals more of financial condition of a company. It tells us what
would be left if a company raises all its short term resources and used to pay its short term
liabilities. Companies current assets have decreased , which may be a reason for increase in
working capital. Company has followed huge disinvestment policy as its investment have came
down. Companies current liabilities have increased which means they have creditors standing at
their doorstep . Cash has also increased a great amount , which shows management has the
ability to pay dividend and even repurchase share. It can also provide extra room for expanding.

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Ratio analysis is used to interpret the financial statement so that strength and weakness of a firm
can be known and its current financial condition can be assessed and determined.

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RATIO DEC 04 DEC 05 DEC 06 DEC 07 DEC 08

CURRENT 1.02 0.85 0.61 0.61 1.12

RATIO

QUICK 0.45 0.38 0.20 0.22 0.79

RATIO

DEBT 0.2 0.2 0.3 0.2 0.9

EQUITY
RATIO

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This ratio is a major test of liquidity. It has improved over the years from 0.61 to 1.12 almost
making it 2 times of it. This ratio measures the surplus or deficit of current assets over the
amount due. Ratio of 2:1 is considered ideal. Jo here this ratio is not a healthy one. Banks
consider 1.33:1 ratio as minimum acceptable level for providing working capital finance.

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current assets , loans and advances ² inventories /current liabilities and provisions ² bank
overdraft

This ratio tries to develop a relationship liquid assets and Current Liabilities. Here quick ratio is
0.79. It shows company is paying Its current obligations quite well. 1:1 ratio is considered good.
This ratio also helps in cross checking inventories.

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Debt /Equity

This ratio indicates what proportion of equity and debt that the company is using to finance its
company. It measures the relative claim of creditors and owners in a business organization. 0.9
ratio indicates that equity is used for finance with some part of debt also in use. It also gives
indication of sound financial position of Cadbury India.

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RATIO DEC 04 DEC 05 DEC 06 DEC 07 DEC 08

INTEREJT 27.36 48.73 77.60 106.72 39.80

COVER

INVENTORY 7.96 8.77 8.78 11.04 7.86

TURNOVER
RATIO

DEBTORJ 31.36 49.89 95.97 105.54 96.83

TURNOVER
RATIO

GROJJ 12.45 12.33 14.11 10.62 11.45

PROFIT
MARGIN

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It has very steep fall from 106 to 39. It shows excessive use of debts . The firm should make
efforts to improve the operating efficiency. High rate shows firm is conservative in using debt
and low rate indicates excessive use of debt.

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Here it can be said Cadbury is turning its inventory of finished goods into sales quite well. 7.9
times a year means it holds an average inventory of 1.5 months or 45 days.

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Credit sales / Average debtors

It indicates the number of times debtors turnover each year. Here ratio is 96 percent which
means management of credit is good. Higher the rate more beneficial it is .

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Gross profit × 100 / sales [ sales²cost of goods sold

]×100 /sales

This ratio shows gap between revenue and expenses at a point after which an enterprise has to
meet the expenses related to the non-manufacturing activities like advertising, marketing.
Cadbury India spends huge amount on advertisements and marketing. Profit has declined over
the years since there are more competitors in the market which has lowered the profit margin.
11.45 percent indicates the capability of the company has decreased to cover its overheads.
Leaving less profit for shareholders.

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The above graph states that the Gross Profit of the company had an upward trend for the year
2004, 05 and 06. For the year 2007 Gross Profit of the company declined and again in 2008 saw
it regained its momentum.

Note: X-axis denotes Years and Y-axis depicts percentage change in gross profit.

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This ratio shows the amount earned in a year on each ordinary share in issue. It also measures
economic performance of the company. Higher means better capital productivity. 51 percent
from 35 percent shows managerial efficiency as it has increased over the years. It shows good
track of profitability.

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Net profit / capital employed

40 percent is a good amount. It means investors have earned a good profit. This ratio tells us how
much profit we earn from the investment. This can be improved if profit margin is increased and
investment is increased. But chocolate industry operates with low margin.


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Dividends paid to equity shareholders / Average number of issued equity shares

This ratio is very similar to EARNING PER JHARE; EPJ shows what shareholders earned by
way of profit for a period whereas DPJ shows how much the shareholders were actually paid by
way of dividends. Cadbury India has paid regular dividend to its shareholders. Rs 2 is
distributed per share as dividend by Cadbury India.

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Q 1. Do you buy chocolates?

From the above graph we see that a good number of people consume chocolate.

Q 2. Which brand do you prefer most?

From the graph we study that maximum number of chocolate consumers prefers to buy Cadbury
chocolates compared to Nestle and Amul.

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Q 3. How have you come to know about the Brand?

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The above graph shows that Cadbury use a medium of television to advertise its brands in the
market television reaches to the mass thus orienting a all sort of age group people.

Q 4)Which product do you buy most?

It is clear from the graph that Dairy Milk is the highest selling product of Cadbury it has a huge
sale compared to 5 star, gems or any other Cadbury product available in the market.

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Q 5) Do you think that the price is reasonable?

This graphical representation states that all Cadbury products are prices reasonable and can be
easily affordable by the consumers.

Q 6) What makes you buy the product?

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The above graph shows that consumers intent to buy Cadbury products again n again because of
the taste of the products.

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Q7) Are you satisfied with the product?

From the graph above we can study that maximum number of consumers of Cadbury products
are satisfied.

Q 8.) Do you receive any complain about the products from the customer?

From the graph above we see a very less number of complaints are received by the consumers of
Cadbury products.

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Q 1.) Do you sell chocolates?

The graphical representation states that almost all dealer sell Cadbury chocolates.

Q 2.) Which of the following brand is available in your store ?

The graph above shows that dealers sell more of Cadbury products compared to Nestle or Amul.

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Q 3.) Which brand sells most?

The above graph explains that Cadbury chocolate has the maximum market share with maximum
sale of chocolates compared to its competitors like Nestle and Amul.

Q 4.) Which product of Cadbury has the highest sale in a day?

It is studied from the above graph that Cadbury Éclairs which is very popular among kids has the
maximum sale of all Cadbury products available in the market.

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Q 5) Which age group buy¶s most ?

The graph shows that Cadbury Chocolates are mostly consumed by people of age group between
11yrs to 20yrs and minimum consumption by age group of 21yrs to 40yrs

Q7.) Are you satisfied with the commission you earn on selling Cadbury products?

It is studied from the above graph that most of the Cadbury dealers are not satisfied with the
commission they earn on selling Cadbury products.

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Q 8) How do you find the packaging of the product?

The above graph shows that maximum dealers of Cadbury Chocolate find packing of Cadbury
Chocolates good

Q 9) Which product give you the highest margin?

The above graph shows that a Cadbury Chocolate dealer earns maximum margin of profit on sale
of Cadbury Dairy Milk compared to Celebrations which also has a good profit margin.

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After conducting the customer and dealer survey analysis a clear understanding about Cadbury
market standing can be evaluated . Moreover factors affecting customer choice can easily be
understood. During customer survey analysis it was clearly evident that chocolates as a product
has got a potential market as only one of the respondent answered that he does not buy chocolate
which could be even regarded as exception . Cadbury as a brand had its product most sought
after followed by Nestle, others, and Amul. One of the primary reasons is due to easy availability
and high advertising. This clearly indicates that the distribution channel of Cadbury is well
established .Customers on the other hand are also satisfied with the product as eighteen of the
twenty respondent replied yes. Price has again been significantly important factor in determining
customer choice as customer invariably look for a Rs. 10 chocolate such as Dairy milk even
today as it was five year earlier. Coming to the dealer point of view, the response given by them
easily synchronizes with responses of the consumer. Almost every dealer sells Cadbury products,
but they are not satisfied with the commission they are earning on the selling the products in case
of any of the brand be it Nestle, Amul , Others due to stiff competition in the fast moving
consumer goods segment. Dairy milk has once against emerged as the most sought after product
in the product width of Cadbury. Packaging too in case of introducing a new or differentiated
product into the market plays an important role in escalating the product to customer as
suggested by dealer.

In the end, I would like to suggest that though Cadbury has a good market positioning it must
provide its dealers with more sales commission this will directly motivate the dealers to sell
more of Cadbury products. In order to pump up the sale of other Cadbury products with
comparatively low sales volume Cadbury should come out with some festive offers from time to
time to attract more and more potential customers of chocolates in the market thus increasing its
market share. Cadbury should come out with some high end range of products in order to
compete with other imported chocolate which are sold in Indian market these days. Cadbury has
an advantage being manufactured in India itself it can compete with them not only in case of
quality but also the price.

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Q 1. Do you buy chocolates?

a)Yes b) No

Q 2. Which brand do you prefer most?

a)Cadbury b)Nestle c)Amul d) Any other

Q 3. How have you come to know about the Brand?

a)Television b)Radio c)Newspaper d)Hoardings E)Word of Mouth

Q 4) Which product do you buy most?

a)Dairy milk b)Fruit and nut c)5 star d) Cleberation e)Temptation f)Eclairs
g)Bournville

h) Gems

Q 5) Do you think that the price is reasonable?

a)Yes b) No

Q6) Do you have any complain about the product? If yes, Please specify?

a)Yes b) No

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Q 7) What makes you buy the product?

a) Taste b) Packet c)Price d)Availability

Q 8) What would you substitute chocolate for?

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Q9) Are you satisfied with the product?

a) Yes b) No

Q10) Any Juggestions?

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Address/contact n0««««««««««««««««...

Q 1.) Do you sell chocolates?

a)c Yes b) No

Q 2.) Which of the following brand is available in your store?

a)c Cadbury b) Nestle c) Amul d) others

Q 3.) Which brand sells most?

a) Cadbury b) Nestle c) Amul d)others

Q 4.) Which product of Cadbury has the highest sale in a day?

a) Dairy milk b) Fruit & nut c) 5 star d) Temptation e) Bourneville f) Éclairs g) Gems

Q 5) Which age group buy¶s most?

a)4-10 b)11-20 c)21-40 d)40-60 e)60-80

Q 6.) Do you receive any complain about the products from the customer?

a)Yes b)No

Q7.) Are you satisfied with the commission you earn on selling Cadbury products?

a)Yes b) No

Q 8) How do you find the packaging of the product?

a)Good b) Average C)Poor

Q 9) Which product gives you the highest margin?

a) Dairy milk b) Fruit & nut c) 5 star d) Temptation e) Bourneville f) Éclairs g) Gems

Q10.) Any suggestions?

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Dec '04 Dec '05 Dec '06 Dec '07 Dec '08

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Jales Turnover 885.28 1,006.02 1,149.97 1,441.92 1,751.24
Excise Duty 121.23 126.24 91.73 148.45 162.65
Net Jales 764.05 879.78 1,058.24 1,293.47 1,588.59
Other Income 13.44 17.87 8.71 7.68 25.07
Jtock Adjustments 13.48 10.44 -2.54 17.29 51.32
Total Income 790.97 908.09 1,064.41 1,318.44 1,664.98
Expenditure
Raw Materials 222.49 246.22 441.53 563.06 732.53
Power & Fuel Cost 16.17 19.62 20.83 25.30 29.70
Employee Cost 76.49 94.38 93.93 107.36 130.22
Other Manufacturing Expenses 124.52 138.85 57.63 76.61 96.01
Jelling and Admin Expenses 0.00 0.00 266.54 323.54 2.45
Miscellaneous Expenses 256.33 292.11 35.88 43.13 430.46
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 696.00 791.18 916.34 1,139.00 1,421.37
Dec '04 Dec '05 Dec '06 Dec '07 Dec '08

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 81.53 99.04 139.36 171.76 218.54

PBDIT 94.97 116.91 148.07 179.44 243.61
Interest 2.41 1.70 2.22 2.03 5.20
PBDT 92.56 115.21 145.85 177.41 238.41
Depreciation 33.95 34.07 33.41 34.32 36.52
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 58.61 81.14 112.44 143.09 201.89
Extra-ordinary items 0.00 0.00 0.00 19.23 0.00
PBT (Post Extra-ord Items) 58.61 81.14 112.44 162.32 201.89
Tax 22.24 35.19 43.62 44.67 36.11
Reported Net Profit 41.29 45.95 68.81 117.65 165.78
Total Value Addition 473.51 544.96 474.80 575.93 688.83
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 7.14 7.14 6.87 6.64 6.44

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Corporate Dividend Tax 1.00 1.00 0.96 1.13 1.09

Per share data (annualised)
Jhares in issue (lakhs) 357.10 357.10 343.57 332.04 321.83
Earning Per Jhare (Rs) 11.56 12.87 20.03 35.43 51.51
Equity Dividend (%) 20.00 20.00 20.00 20.00 20.00
Book Value (Rs) 110.89 121.48 114.12 122.32 144.30



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