ADVERTISEMENT PROJECT

A STUDY ON THE STRATEGIES USED BY CADBURY AND NESTLE

SUBMITTED BY: Nivedita.B Fin 1 Ss 10-12 IIPM bangalore

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Acknowledgement

I deeply convey my heartfelt gratitude to my guide , professor Srinivasan for his valuable guidance, encouragement and suggestion in the course of this project work. I am deeply grateful to my family and friends, for, without their constant support and help, this work could never have been completed successfully.

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Declaration
I hereby declare that the project titled strategies used by cadbury and nestle is based on the original work carried out by me under the guidance of prof.Srinivasan faculty guide at IIPM Bangalore, submitted in partial fulfillment of the requirement of the course of study.

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Executive summary
The project entitled a study on the strategies used by nestle and Cadbury is aimed at understanding their promotional and advertising strategies that has enabled the two brands to have a renowned name in the chocolate industry. The purpose of the study is to know the key aspects of marketing and how the tool of advertising would enable in incurring profits as well as losses. How important it is to understand customers and the aspects of pricing and the promotions in case of FMCG

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Table of contents
1) 2) 3) 4) 5) 6) 7) Introduction to the industry Introduction to the company ( Cadbury) Introduction to the company ( nestle) Swot analysis 4 ps analysis Strategies used Conclusion.

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Introduction to the chocolate industry

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An overview of the industry

Chocolate is a raw or processed food produced from the seed of the tropical Theobroma cacao tree. Cacao has been cultivated for at least three millennia in Mexico, Central and South America. Its earliest documented use is around 1100 BC. The majority of the Mesoamerican people made chocolate beverages, including the Aztecs, who made it into a beverage known asxocoltl, a Nahuatl word meaning "bitter water". The seeds of the cacao tree have an intense bitter taste, and must be fermented to develop the flavor. Many chocolate manufacturers have created products from chocolate bars to fudge, hoping to attract more consumers with each creation. Both The Hershey Company and Mars have become the largest manufacturers in the world. Other significant players include Nestl, Kraft Foods and Lindt. The Hershey Company, known for their Hershey bar, Hershey's Kisses and Reese's Peanut Butter Cups, is the largest chocolate manufacturer in North America. Mars, Incorporated, one of the largest privately owned U.S. corporations, is a worldwide manufacturer of confectionery and other food products, with US$21 billion in annual sales in 2006. Mars is known for Mars Bar, Milky Way, M&M's, Twix and Snickers, as well as other confectionery items, such Skittles. Food conglomerates Nestl SA and Kraft Foods both have chocolate brands. Nestl acquired Row trees in 1988 and now market chocolates under their own brand, including Smarties and Kit Kat; Kraft Foods through its 1990 acquisition of Jacobs Suchard, now own Milka and Suchard. In February 2010, Kraft also acquired British-based Cadbury plc, the world's largest confectionery manufacturer. Cadbury is well known for its Dairy Milk range and Crme Egg; Fry's, Trebor Basset, the fair-trade brand Green & Black's also belong to the group. The Indian Chocolate Industry has come a long way since long years. Ever since 1947 the Cadbury is in India, Cadbury chocolates have ruled the hearts of Indians with their fabulous taste. Indian Chocolate Industry?s Cadbury Company today employs nearly 2000 people across India. The company is one of the oldest and strongest players in the Indian confectionary industry with an estimated 68% value share and 62% volume share of the total chocolate market. It has exhibited continuously strong revenue growth of 34% and net profit growth of 24% throughout the 1990?s. The brand of Cadbury is known for its exceptional capabilities in product innovation, distribution and marketing. With brands like Dairy Milk, Gems, 5 Star, Bournvita, Perk, Celebrations, Bytes, Chocki, Delite and Temptations, there is a Cadbury offering to suit all occasions and moods

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Today, the company reaches millions of loyal customers through a distribution network of 5.5 lakhs outlets across the country and this number is increasing everyday. In 1946 the Cadbury?s

manufacturing operations started in Mumbai, which was subsequently transferred to Thane. In 1964, Induri Farm at Talegaon, near Pune was set up with a view to promote modern methods as well as improve milk yield. In 1981-82, a new chocolate manufacturing unit was set up in the same location in Talegaon. The company, way back in 1964, pioneered cocoa farming in India to reduce dependence on imported cocoa beans. The parent company provided cocoa seeds and clonal materials free of cost for the first 8 years of operations. Cocoa farming is done in Karnataka, Kerala and Tamil Nadu. In 1977, the company also took steps to promote higher production of milk by setting up a subsidiary Induri Farms Ltd., near Pune. In 1989, the company set up a new plant at Malanpur, MP, to derive benefits available to the backward area. In 1995, Cadbury expanded Malanpur plant in a major way. The Malanpur plant has modernized facilities for Gems, Eclairs, and Perk etc. Cadbury operates as the third party operations at Phalton, Warana and Nashik in Maharashtra. These factories churn out close to 8,000 tonnes of chocolate annually. In response to rising demand in the chocolate industry and reduce dependency on imports, Indian cocoa producers have planned to increase domestic cocoa production by 60% in the next four years. The Indian market is thought to be worth some 15bn rupee (?0.25bn) and has been hailed as offering great potential for Western chocolate manufacturers as the market is still in its early stages. Chocolate consumption is gaining popularity in India due to increasing prosperity coupled with a shift in food habits, pushing up the country's cocoa imports. Firms across the country have announced plans to step-up domestic production from 10,000 tonnes to 16,000 tonnes, according to Reuters. To secure good quality raw material in the long term, private players like Cadbury India are encouraging cocoa cultivation, the news agency said. Cocoa requirement is growing around 15% annually and will reach about 30,000 tonnes in the next 5 years. Latest developments

Chocolate-lovers may soon find their chocolate dearer if the problems plaguing the industry continue. Raw material costs have risen by more than 20 % in the last few years. Although retail prices have not increased, a rise in input costs will force the manufacturers to consider a price hike.The Bigger players in the country such as Cadbury, which leads the Rs 2,500 crore chocolate markets in India with a share of 72%, will find it easier to absorb the surge in input costs as it has products at various price points in the market, said industry experts. Cadbury may also opt for a price hike, albeit marginal, if the current trend continues. Indian Chocolate Industry?s Margin range between 10 and 20%, depending on the price point at which the product is placed. The input costs in India are under check owing to the 24% decline in the prices of sugar.

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The World?s Leading manufacturer of high quality cocoa and chocolate products Barry Callebaut, has announced the opening of its first, state-of the art, Chocolate Academy in Mumbai, India in July 2007. According to the analysis of the international market intelligence provider Euromonitor, the relatively small Indian chocolate market with volumes of about 55,000 metric tonnes of chocolate and compound per year is expected to grow on average per year by around 17.8% between 2008 and 2012. Ferrero the Italian confectionery giant of $8 billion has planned up for a new production facility in Maharashtra with an investment of over $125 million to whip up some of its popular brands that include Rocher and Kinder.

The chocolate industry, a steadily growing, $50 billion-a-year worldwide business centered on the sale and consumption of chocolate, is prevalent on five out of seven continents. Big Chocolate, as it is also called, is essentially an oligopoly between major international chocolate companies in Europe and the U.S. These U.S. companies, such as Mars and Hersheys alone, generate $13 billion a year in chocolate sales and account for two-thirds of U.S. manufacturers. However, Europe accounts for 45% of the world's chocolate revenue. 1. Chocolate market is estimated to be around 1500 cores (ACNielsen) growing at 18-20% per annum 2. Cadbury is the market leader with 72% market share 3. The per capita consumption of chocolate in India is 300 gram compared with 1.9 kilograms in developed markets such as the United Kingdom 4. Over 70 per cent of the consumption takes place in the urban markets 5. Margins in the chocolate industry range between 10 and 20 per cent, depending on the price point at which the product is placed 6. Chocolate sales have risen by 15% in 2007 to reach 36000 tones according to one estimate. Another estimate puts the figure at 25000 tones 7. The chocolate wafer market (Ultra Perk etc) is around 35 % of the total chocolate market and has been growing at around 13% annually 8. As per Euro monitor study, Indian candy market is currently valued at around USD 664 million, with about 70%, or USD 461 million, in sugar confectionery and the remaining 30%, or USD 203 million, in chocolate confectionery 9. Entire Celebrations range market share is 6.5% 10. The global chocolate market is worth $75 billion annually Companies 1. The chocolate market in India has only three big players, Cadbury, Nestle and Amul 2. New brands such as Sweet World, Candico and Chocolatiers are present in several malls
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3. The largest target segment for Cadbury is youth 4. Delhi-based Chocolatiers, started with a small shop in south Delhis ChittaranjanPark and has now ventured into malls and multiplexes in NCR, Mumbai and Bangalore, with focus on high-end or designer chocolates, a niche market of their own 5. Candico India is aiming for 400 locations across malls and multiplexes in the country by 2010. Companies & Brands 1. Cadbury - Cadbury, 5 Star, Bytes (chocolate snack), Celebration, Dairy Milk, Gems, Perk 2. Nestle - Bar One, Kit Kat, Milky bar, Munch, Nestle 3. Amul - Amul (Chocozoo, Choc mines) 4. Dairy Milk is the market leader 5. 5 Star (heritage brand which came to India in 1969) has a market share of over 14%

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INTRODUCTION TO CADBURY

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Type

Subsidiary of Kraft Foods

Industry

Confectionery

Founded

Birmingham, UK (1824)

Headquarters

Cadbury House, London,United Kingdom

Products

See list of Cadbury products

Revenue

5,384 million (2008)

Operating income

388 million (2008)

Net income

364 million (2008)

Employees

71,657 (2008)[1]

Parent

Kraft Foods

Website

Cadbury.co.uk

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Cadbury India Limited (CIL), a part of the Cadbury Schweppes Group, is Indias leading confectionary manufacturer. Cadburys Dairy Milk, 5 Star, clairs, Perk and Gems are the largest selling brands in their segments. CIL is estimated to have a 65 percent share of the Indian chocolate market. The Indian chocolate market is estimated to be worth Rs. 3.2 billion, with an annual growth rate of 10 percent. Per Capita Consumption levels are very low in India, as compared to 8.7 kg per year in the U.K. The market therefore offers tremendous potential for growth. In this analysis, we examine some of the interesting aspects of Cadburys advertising strategy. The Cadbury inc has taken the opportunity to offer us a broader view of category... the Cadbury indias no1 chocolate is able to share with their market insights based on unparalleled breadth of chocolate experience Cadbury has grown from strength to strength with new technologies being introduced to make the Cadbury confectionary business, one of the most efficient in the world. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking lead in both the confectionary and soft drink market intact UK and becoming a major force in the international market. Cadbury Schweppes today manufactures in almost all companies. Cadbury once started of a home business and today is one of the worlds leading companies in the chocolate business. Cadbury is a very old trusted name. It all started in Birmingham in England when John Cadbury started his family grocery shop with side business of cocoa and chocolate products in around 1824. His two sons, Richard and George, expanded their family business of cocoa and chocolate. Bournville, a town near Birmingham, was build by them as a part of expansion of their business.

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INTRODUCTION TO NESTLE

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Type

Socit Anonyme

Traded as

SIX: NESN Euronext: NESTS OTC Pink: NSRGY

Industry

Food processing

Founded

Vevey, Switzerland (1866)

Founder(s)

Henri Nestl

Headquarters

Vevey, Switzerland

Area served

Worldwide

Key people

Peter Brabeck-Letmathe(Chairman), Paul Bulcke (CEO)

Products

Baby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, pet foods (list...)

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Revenue

CHF 109.72 billion (2010)[1]

Operating income

CHF 16.19 billion (2010)[1]

Profit

CHF 34.23 billion (2010)[1]

Total assets

CHF 111.64 billion (end 2010)[1]

Total equity

CHF 62.60 billion (end 2010)[1]

Employees

281,000 (2010)[1]

Website

www.nestle.com

Nestl S.A. Is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestl originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lacte Henri Nestl, founded in 1866 by Henri Nestle. This objective is encapsulated in Good Food, Good Life. The principle activities of the group encompass: beverages, milk products, nutrition and ice cream; prepared dishes and cooking aids; chocolate, confectionery and biscuits; water; and pet care. It has 511 factories in 86 countries around the world.The company grew significantly during the First World War and again following the Second World War, eventually expanding its offerings beyond its early condensed milk and infant formula products. Today, the company operates in 86 countries around the world, and employs over 280,000 people. The company dates to 1867 when two separate Swiss enterprises were founded that would later

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form the core of Nestl. In the succeeding decades, the two competing enterprises aggressively expanded their businesses throughout Europe and the United States. Nestl set up its operations in India, as a trading company in 1959 and began manufacturing at the Moga factory in 1962. The production started with the manufacture of Milkmaid and other products were gradually brought into the fold. Nestl India Limited was formally incorporated in 1978 prior to which the manufacturing license was issued in the name of the Food Specialties Limited.

Nestl has some 6,000 brands with a wide range of products across a number of markets, including coffee (Nescaf, Nespresso, etc.), bottled water (Buxton, Perrier, etc.), milkshakes and other beverages (Nesquik, Milo, Carnation, etc.), chocolate (Milky Bar, After Eight, etc.), ice cream (Hagen-Dazs, Skinny Cow, etc.), breakfast cereals (Golden Nuggets, Shreddies, etc.), infant foods (now including Gerber products), performance and healthcare nutrition (Nesvita, PowerBar, etc.), seasonings, soups and sauces (Maggi, Buitoni, etc.), frozen and refrigerated foods (Findus, Lean Cuisine, etc.), confectionery (Rowntree products, Caramac, Wonka products, etc.), and pet food (Winalot, Felix). Nestle India was recognized with the top Exporter Award for export of Instant Coffee, and for export of all coffees to Russia and CIS Countries.

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A range of products from nestle

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HISTORY AND GROWTH

In 1959, on 28th March, the Company was incorporated at New Delhi. The company was promoted by Nestle Alimentana S.A. through a wholly Owned subsidiary Nestle Holdings Ltd. In 1989 The name of the company was changed from `Food Specialties Ltd.' to `Nestle India Ltd.' on 24th March. 1990 - During the year company entered into chocolate business by introducing Nestle premium chocolates. 1993 - Samalkha factory was commissioned during the year and underwent expansion for cereal based products. - 196,07,054 shares 47,51,625 No. of Equity shares of Rs 10 each allotted to M/s. Nestle SA Switzerland to raise the stake to 51%. 128,55,429 bonus shares issued in prop. 1:4. 1994 -During the year company launched a number of new products viz., Cerelac Soya, Milk maid, Dessert Mixes, Maggo Tonit's Special Cooking Bases, Maggi 1-2-3 noodles, Contodina snack dressing and the chocolate items, milky base marbles and bar one peanut. And also launched Bonus and Polo. 1995 - During the year company commenced construction of a new factory at Bicholim, Goa. At the same year, instant noodles factory was Installed and commissioned at Samalkha factory. - During the year company launched Kit Kat manufactures at the new factory at Ponda, Goa. -The Chennai-based Indian Food Fermentations tied up with Nestle India Ltd., to market its dosa and vada batter in consumer pack, in the country. The company has signed an agreement to this effect recently. Nestle would sell the ready-to-use dosa, vada, sambhar and unique masala dosa batter in consumer packs, under its own brand name in the country. 1996 -During the year company launched MILO-Chocolate energy food drink in South India and a range of culinary products like, Dosa and Sambar mixes, pickles and new varieties of soups under the brand Maggi. 1997 - NIL stood as one of the top players in the processed food & beverages industry and the largest producer of instant coffee with a 49 percent market share. 2000 - Nestle is set to enter the domestic bottled water business and will launch the product under the brand name `Pure Life'. -The Company has launched its ultra heat treated liquid milk, `Nestle Pure Milk', in Bangalore, Chennai, Hyderabad and Kochi.
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Nestle India Ltd. to launch Nescafe Gold and Nescafe Gold Decaffeinated. - Nestle India has launched a range of gift packs under the Fox confectionery brand name for the festival seasons. 2005 -Nestle India introduced new variants of Maggi into the market.

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Swot analysis of Cadbury

Strength due to its presence in India for more than 54 yrs it has a strong distribution channel Cadbury Schweppes plc is a very profitable organization, generated revenue of more than 6,508 billion It is a global chocolate brand built upon a reputation for fine products and services. Cadbury Schweppes plc was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce. The organization has strong ethical values and an ethical mission statement ,Strong brand equity in India Low cost of production due to economies of scale

Weaknesses Cadbury has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time. The organization has a strong presence in the United States of America, UK and India. It is often argued that they need to look for a portfolio of countries, in order to spread business risk. Cadbury's recall over 1 million chocolate bars over salmonella fears the organization is dependent on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise. The company has no apprehensions of cannibalization of its chocolate brands.

Opportunities Cadbury company is very good at taking advantage of opportunities. The company has the opportunity to expand its global operations. New markets with new products which are limited in particular region. Cadbury has decided to focus on a few of its key brands such as Cadbury Dairy Milk, Bournvita, clairs and Halls to drive growth for the company. Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential. Cadbury India is attempting to increase the declining market for chocolate with innovation, one of which is its sweet snack, Bytes..
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Threats who knows if the market for Cadbury will grow and stay in favor with customers, or whether another type of beverage or leisure activity will replace coffee in the future? Health organization have so many barriers for new development Cadburys are exposed to rises in the cost of chocolate and dairy products. Globalization has lead to the reach of the competitors brands for the rest of the people.

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Swot analysis of nestle

Strength: Global food producer, located in over 100 countries. Consistently one of the world's largest producers of food products, with sales in the USA in 2008 of $10 billion; sales and earnings in 2008 were better than expected, even in a downturned economy. Global sales in 2008 topped $101 billion. In 2008, Nestl was named one of "America's Most Admired Food Companies" in Fortune magazine for the twelfth consecutive year. Well known for top selling brands like magi and boost etc..,

Weakness: lack in the innovation Lacks in creativity compared to that of Cadbury

Opportunity: In today's health conscious societies, they can introduce more health-based products, and because they are a market leader, they would likely be more successful. Provide allergen free food items, such as gluten free and peanut free. Open Nestl Caf's in major cities to feature Nestl products.

Threats: Raw chocolate ingredient prices are soaring; dairy costs alone rose 50% in 2008, this cuts heavily into their profit margins and often gets passed on to consumers, by shrinking the packaging in a way that is almost unnoticeable-therefore the consumer is paying the same prices for less product. They have major competitors, like Hershey's, Cadbury-Schweppes (owned by Pepsi), Lindt and Ghirardelli, Kellogg's, Post, Starbucks, Beech-Nut, Quaker, Kraft Foods, Dannon, Del-Monte, Iams, Earth's Best, Heinz, Frito-Lay (owned by Pepsi).

Competition from the home chocolate range

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Children generally arent much brand conscious when it comes to chocolates and thus there is a heavy chance of losing their brand amongst children Environmentalist are bringing in new laws which may be against the chocolate industry

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4ps analysis of Cadbury

Product:
An average company will compete for customers by conforming to his expectation but a leading company would surpass the customers by exceeding their expectations Chocolate and confectionary, diary milk, fruit and nut, 5 star, perk, gems , clairs, temptation, bournvita.

Price:
Cadburys is priced strategically so as to cater to the wants of all Diary milk shots is available for rs 2 as well as rs 10 Diary milk is available from rs 5 Perk =rs 10 Gems= rs 10 5 star =rs 10

Place:
Cadbury has 2100 distributors, and more than 450000 retailers Cadbury has made itself available in most of the rural parts of india with its lower priced products in order to remove the spurious brands.

promotion:
effective advertising appeals to all age group.

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4 ps of nestle

Product :
Milky bar, kitkat, munch, coffee, nestea

Pricing:
The price charged for a chocolate bar can determine whether a consumer will buy it and the level of sales achieved can determine. Price is also affected by factors such as the state of the economy, what competitors are charging, the stage reached in the products life cycle and above all what price the Indian market will bear.

place:
Nestle again has spread worldwide. Nestle when entering a new market does not go in alone but it looks for partners and mergers. Till now nestle has collaborated with companies many mncs etc. nestle has been flowing the footsteps of Cadburys by introducing lower cost products like chota munch.

Promotion:
Brand Ambassadors to promote their product. These brand ambassadors are famous people who usually people idolize and people can relate to them. The following pictures do not need any explanation as people are familiar with the celebrities and can thus quickly identify with the product.

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Strategies used by Cadbury

in the year 2000 cadbury launched its first gift packs for diwali in order to make Cadbury synonymous wid the traditional sweets that wer used during Indian festivals. In the year 2001 cadbury launched its gift pack sweet nothings for valentines day. Cadbury used amitabh bachchan as its brand ambassador In the year 2007 cadbury launched ultra perk nationally after it was test marketed in Karnataka and tamil nadu and was proved successful Cadbury wanted to make its name synonymous with sweets and thus it advertised itself as a sweet during raksha bandan an Indian festival which marks the bond between the brother and sister, traditionally the sister feeds the brother sweets, Cadbury wanted to replace the tradition sweets wid Cadbury Cadburys in its mid stage had quality issues when some people spotted the pack with worms how ever Cadbury withdrew its stocks overnight and changed the packing In the early 1990s when most of the chocolate brands focused on childrens Cadbury had a different thought in mind when it focused on adults. The message that CIL seems to be attempting to put across is this: In every adult, there is a child - let that child express itself, give in to temptation, and satisfy his or her desire to sink teeth into a smooth, creamy, delicious chocolate. Cadburys multi-award winning campaign - The Real Taste of Life - launched in the 90s attempts to capture the child like spontaneity in every adult. From the old man offering his wife a Dairy Milk chocolate to the dancing girl in a crowded stadium, all reflect the impulsiveness and the spontaneity of the child in the adult. Cadburys Perk, the light snack, addresses the hungry child in every adult, as exemplified by the bride who nibbles at a Perk under her pallu. Catchy lines such as The Real Taste of Life, Khane Walo Ko Khane Ka Bahana Chahiye, or Reach for the Stars, are also used extensively, and to good effect in Cadburys advertisements. Television, the print media and posters have been the main media of communication for Cadburys advertisements. However, with their understanding of the peculiarities of the Indian market, CIL has also explored many new ways of getting their message across to the consumers.

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Sheet Metal Dispensers: This purple salesperson for Cadburys is found in almost every shop stocking their chocolates. Since it is placed on the cash counter, its design offers visibility, ease of vending, and protection from the elements. It is also placed in the most appropriate position to cater to the impulse buyers. Cadbury launched milk treat that was a direct competitor to milky bar which was a nestle product positioned itself as a chocholate with the goodness of milk , it combines good health and nutrition along with a pinch of fun and excitement. Temptation is aimed at the niche international segment to compete wid brands like lindt , hersheys etc.., Cadbury until months back targeted the kids for its gems brand where coloured panda bears were found eating gems in the forest which were appealing to the kids. In the recent week gems has again targeted the adults where its states there is no age to be greedy for ur chocolate be umar less. Cadbury associated the emotions and cleverly capitalized on this to bring out new ads. Cadburys one successful campaign would be pappu paas hogaya which mentioned something sweet to celebrate every moment. In the initial days when Cadbury was associated with amithab bachchan it brought in a suspense to know what he was associated with and asked viewers to guess after which it was revealed that the brand was Cadbury. Cadbury launched its Disney range of packs where the usual diarymilk was in the shape of the Disney characters which was a success among the kids. Product innovation has always been a part in the diary milk. CONSUMER FEEDBACK SUGGESTED THAT THE OLD 5 STAR 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 STAR CRUNCHY PERK WAS MADE MUCH LIGHTER AND THE SIZE OF THE BAR INCREASED TO MATCH NESTLES MUNCH. PERK HAD BEEN UNDER FIRE FROM NESTLES DEADLY DUO OF KITKAT AND MUNCH, BUTAFTER THE RELAUNCH, ITS MARKETSHARE IS TWO PER CENTMORE THAN KITKATS. AND, THE FIVE-YEAROLD BRAND IS NOWALMOST AS BIG AS THE DECADES-OLD 5STAR IN SIZE, BOTH IN THE REGION OF RS 50-55 CRORE.

CHOCOLATES ARE PRIMARILY SOLD THROUGH KIRANA STORES, GIFT STORES, MEDICAL STORES, CANTEENS, PAN-BIDI STORES, BAKERIES, SWEETSHOPS ETC. THIS IS TRUE FOR CHOCOLATES ALSO. THE SPACE ALLOCATED FOR THE CHOCOLATES WAS LESS WHEN COMPARED TO The TOTAL AREA OF THE SHOP. OF THE SPACE ALLOCATED FOR CHOCOLATES, CADBURY BRANDSOCCUPIED MORE THAN NESTLE BRANDS.

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CADBURY CELEBRATIONS: Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry- fruits during festive seasons. Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and caramels. The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an exotic range of chocolate covered dry fruits and nuts in various flavours and the premium dark chocolate range which is exotic dark chocolate in luscious flavours. INTRODUCING DIARY MILK AS AFTER DINNER SWEET : One of the biggest marketing strategy followed by Cadbury in India was introducing Cadbury as an after dinner sweet. Indians are fond of having dessert after their dinner. Cadbury aimed at replacing the traditional sweets. Apart from its after dinner advertisement Cadbury targeted adults rather than children. In most of its advertisements, the brand is endorsed and advertised by adults rather than by children even though it basically sells chocolate. Such type of advertisements have created a very wide range of consumers for Cadbury. Its products are not limited to children alone. Adults like the products of Cadbury as much as children do. They are exclusively indianised. The chocolate packs contain special chocoloates such as dry fruits rich chocolates as people normally serve dry fruits during diwali.

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ONE OF THE ADVERTISEMENT BY DIARY MILK FEATURING ITS BRAND AMBASSADOR.

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Strategies used by nestle

Nestl describes itself as a food, nutrition, health, and wellness company. Recently they created Nestl Nutrition, a global business organization designed to strengthen the focus on their core nutrition business. Nestle India enjoys strong pricing power and faces relatively low competition in the categories where it operates. Reduction in the finished goods inventory pipeline to improve freshness of stocks and reduce working capital. Kitkat has positioned itself as a snack for any break. Maggi was launched 2 decades back and today there is no home that is alien to this noodle and there hasnt been any successful competitor to take away the name out of the minds of its consumer Nestles maggi noodles with its tagline 2 minutes has a very strong recall in the minds of the consumer. Nestle provides free coupons and samples in various websites such as coupon.com In the mid jan of 2012 nestle started provoding a combined effect with the farmers of coffee plantation for their instant coffee brand Nestle slim milk was launched keeping in mind the health conscious segment who preferred low fat content in the milk Maggi was relaunched keeping in mind the taste of people in various divisions of india like maggi atta noodles etc.., The choco stick launched by nestle for kids below 12 yrs proved to be a hiuge success in south india. Availability of NESCAFE enhanced through an expansion of the vending machine network.

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Campaigns of nestle

A campaign promoting kitkat

Promotion campaign of Nescafe with its southern brand ambassador

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Conclusion
Nestl India has a very wide portfolio of products ranging from Maggi Hot n Sweet Tomato Sauce to Nestle Fruit n Dahi. Although, Nestl does not advertise much about its products in India, still it is the world market leader in the milk market and Maggi noodles is the product we have all grown up eating. On the whole, Nestl India focuses mainly on the areas where it is a potential leader. They may not try to replace the leader but surely their product becomes the second best product in the market. For example, they do agree that Cadburys is synonymous to chocolates in India and therefore they did not necessarily try to replace their flagship brand Cadburys Dairy Milk but have developed a product in the other chocolates segment and therefore Nestl Munch is the second best chocolate in India today as showed by the sales figures. They have tried to price their products at lesser than the price of the competitors, for example, Nestl Bar-One was sold at Rs.5 whereas the same quantity of its competitor chocolate Cadburys 5-Star was sold at Rs.6. In some areas, Nestl has been able to outperform its competitors and rather, for products like Maggi noodles, it has no substantial competitors. When magi noodles came into the market, there were other players like Top Ramen, whose presence counted but now it makes no difference to the leader-Maggi. Anybody looking for a good, refreshing coffee would like to drink a Nestl Nescafe coffee and may not even at times give a second thought to the competitor Bru coffee. However on the other hand Cadbury has always had an competitive advantage and has proved to be an exclusive product in india in the chocolate segment. Cadburys strategy to attract consumers is somewhat unique in a sense, instead of focusing on the product, it seeks to tap into emotions normally associated with chocolates. They have also adapted their strategies to the unique demands of the Indian retail sector. The strategy has clearly proved successful, as they have been able to build and maintain a leadership position in the market with many loyal customers.

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Bibliography

WWW.CADBURY.CO.UK WWW.CHOCOLATEREVIEW.CO.UK WWW . CADBURYS CHWEPPES.COM WWW.WIKIPEDIA.ORG WWW.CADBURY.COM WWW.OPPAPERS.COM

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CERTIFICATE

This is to certify that Nivedita. B has completed her project, on the advertisement strategies by Cadbury and nestle under my guidance. It is her own work fully and to the best of my knowledge and belief that it has not been used for the award of any degrees in this university or anywhere else and I am satisfied with her effort in this connection.

Head of Department

Project guide

Date:

Date

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