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BIMTECH

MARKETING PROJECT ON

PREPARED BY: GROUP 9


Shubham Gulati Spa !h Sh i"a!ta"a Ama# G$%al Rabi%a Gill T ipt Si&hu A!hi!h Sa#'(a#

CHAPTER)* INTRODUCTION
Chocolate consumption in India is extremely low. Per capita consumption is around 160 gms in the urban areas, compared to 8-10 g in the de!eloped countries. In rural areas, it is e!en lower. Chocolates in India are consumed as indulgence and not as a snac "ood. # strong !olume growth was witnessed in the early $0%s when Cadbury repositioned chocolates "rom children to adult consumption. &he biggest opportunity is li ely to stem "rom increasing the consumer base. 'eading players li e Cadbury and (estle ha!e been attempting to do this by !alue "or money o""erings, which are a""ordable to the masses.

OBJECTI+E O, THE STUDY


&o analy)e the consumer pre"erence and perception "or Cadbury Chocolate with re"erence to other mar et players *ar et share o" competitor%s brands. &o study the consumer beha!ior o" chocolates. #nalysis o" the product, pricing, a!ailability ,+uality, taste, ad!ertising and pac aging o" Cadbury Chocolates. &o study the strategies , measures adopted by Cadbury.

CHAPTER)INDUSTRY PRO,I.E O+ER+IE/ O, INDUSTRY AS A /HO.E


&oday%s scenario in the chocolate industry is a highly competiti!e one. In the wa e o" liberali)ation as the economy opens up more and more international brands o" chocolate are entering into the Indian *ar et gi!ing to are coming the competition to capture the Indian *ar et is holing up. .one are the days when the chocolates were considered to be a luxury item only to be consumed by the rich people. &he chocolates appeal to all the classes irrespecti!e o" age, sex or status. (ow the chocolates are positioned as a light meal to be consumed between hea!y meals. /ome o" the examples o" this type o" positioning are 0P1 23 and 0Kit Kat3 with chocolate companies ha!ing intense competition and with reducing shel" space only those companies who mar et their chocolates as well as ad!ertise and pac age them will ha!e a chance to sur!i!e in the mar et. &he studies ha!e shown that most o" the time chocolate buying is an impulse action i.e. when one sees the chocolates on the shel" o" the shop so, it is !ery important "or the manu"acturer to pac age them attracti!ely. (ow each and e!eryone position day%s chocolates as a thing, which can be eaten. 0e had to gauge the strength and wea nesses o" establish players in the chocolate mar et. /o, we regard top players li e 1Cadbury%s%, 1(estle%, 1#mul% and some 2oreign Chocolates. 3ut there in the chocolate mar et Ca&bu % has had the mar et share o" about 415 "ollowed by (estle at about -65 "ollowed by #mul 75 , about -5 by rest small players. &here were !arious reasons due to which there was such a large gap between the mar et leader and the rest such as8 Cadbury%s main strength is "ast reaction is e!ery time the competitors launch a product they immediately launch a ri!al product with "ar lower
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prices li e e.g. 0hen N1!tl1 launched 4Kit)Kat5 Cadbury%s soon "ollowed with 9Per : with "ar lower prices. /o as to retain its mar et share in which they ha!e succeeded. &he other strength, which we "eel, is distribution networ . Cadbury%s has a "ar better distribution networ than (estle and #mul. Its chocolates can be "ound in e!ery noo and corner o" the country where as the competitors ha!e not been able to do so. #nother interesting strength, which we "ound out during the mar et research, was the pac aging strategy, we "ound out that all. ;ig players especially Cadbury%s eep on changing the pac aging o" its chocolates a"ter e!ery six months. *ost o" people decide to buy the chocolate only i" they "ind the pac aging attracti!e. ;ut there are some wea nesses also attached with the chocolate industry li e we all now that chocolate as such is a perishable commodity, so, i" there is no proper maintenance the chocolate can easily perish due to which the company can run into se!ere losses. #s the Indian company economy is coming out o" age and per capita income as well as spending is increasing, there is a lot o" opportunity in the chocolate mar et. &he per person consumption o" chocolates o" Indian is !ery low as well as there are !ery "ew, established players in the mar et. &he con"ectionery industry in India is approximately di!ided into8

Chocolates <ard-boiled candies =clairs , to""ees Chewing gums 'ollipops ;ubble gum

*ints and lo)enges

HISTORY O, CHOCO.ATES
&he word >chocolate> is said to deri!e "rom the *ayan >xocoatl>? cocoa "rom the #)tec >cacahuatl.> &he *exican Indian word >chocolate> comes "rom a combination o" theterms choco @>"oam>A and atl @>water>A? early chocolate was only consumed in be!erage. &he story o" chocolates began in the new world with the *ayans, who dran a dar brew called cacahuha+uchl. 'ater, the #)tecs consumed chacahoua and used the cocoa bean "or currency. In 1B-6, they o""ered cocoa bean to Corte), who introduced chocolate to the old world, where nut swi"tly became a "a!orite "ound among the rich and noble o" =urope. 2rom the beginning turning raw, better cocoa beans into what one 11th century writer called 9the only true "ood o" the gods: has been a "ine art, a delicate mixture o" alchemy and science. Centuries ago, it was disco!ered that by "ermenting and roasting the beans, an almost otherworldly "la!or could be created. In 184B, a"ter years o" trying, a 61-year-old candy ma er in Cea!y named Daniel peter "igured out how to combine mil and cocoa powder. &he resultEmil chocolate. Peter, a "riend and neighbor o" HENRI NEST.E, started a company that would +uic ly become the world%s leading ma er o" chocolate. Currently it has mar er capitali)ation o" 100 billion /wiss 2ran s. #nother household name in the "ield o" chocolate mar et is Ca&bu % S6h(1pp1! Pl67! ha!ing a F7.- billion company and has a presence in -00 countries. &he total con"ectionery mar et is !alued at Gupees -6 billion with a !olume turno!er o" about 17B000 tones per annum. &he category is largely consumed in urban areas with a 405 s ew to urban mar ets and a 605 to rural mar ets. <ard-boiled candy accounts "or -05, =clairs and &o""ees accounts "or 185, .ums and *ints and lo)enges are at par and account "or 165. Digesti!e Candies and 'ollipops account "or 1.B5 share respecti!ely. &he opportunity in India sure loo s big. India ma es up only 0.B per cent or F600 million @Gs 1,B00 croreA o" the FB4 billion global chocolate mar et. #nd the per capita consumption at around 0.17 grams, compared with 10 gs in the H/, is among the lowest in the world. 3n the "ace o" it, the !ital statistics o" the con"ectionery segment
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seem more promising than the con!entional 2*C. categories such as toilet soaps or detergents. <owe!er, a close loo into the industry says a di""erent story. Gigid price points, rising input costs, distribution di""iculties and competition ail the con"ectionery segment. #lthough, companies are drawing up inno!ati!e strategy to sustain their growth, the industry has been urging the go!ernment to ta e steps to ma e it more competiti!e. /pearheading this demand is Indian Con"ectionery *anu"acturers #ssociation @IC*#A. &he mar et is estimated to be growing at a healthy 1- per cent, albeit on a low base. Compare that with <ershey%s growth o" "ewer than "our per cent in its main mar et, the H/. &he chocolate maIor is not !enturing into unsheltered territory. &he two "irms that launched a Ioint bid "or ac+uiring <ershey in -00- J Cadbury and (estle, dominate the Indian mar et. 0hile Cadbury commands a mar et share in excess o" 60 per cent, (estle has a -0 per cent slice o" the chocolate pie. &he entry o" biggies li e the FB billion <ershey, says # *ahendran, mentor director, .odreI <ershey 2oods , ;e!erages, will not necessarily ta e the mar et away "rom (estle or Cadbury. It%s the pie that will grow to accommodate new players. *eanwhile Cadbury, which is again ma ing o!ertures to buy out <ershey%s globally, is positioning chocolates as the best treat "or any celebration. #nd dairy maIor #mul, which entered the chocolates mar et a "ew years ago, recently launched a range o" sugar "ree chocolates. (estle too has introduced Kit-Kat 'ite, a diet !ariant o" its popular Kit-Kat brand aimed at the health conscious segment. 0ith more organi)ed retailing "ormats in place, companies are con"ident that consumption will per up and chocolates that retail "rom air-conditioned shel!es will escape the un"a!orable climate o" the momand-pop stores. &his time, it%s the players that are going to generate all the heat. &he con"ectionery product is an impulse generated demand exercise and o"ten depends on trade push and intermittent consumer pull. &he narrow spectrum o" brand acti!ity in con"ectionery can become broad only i" the industry is willing to in!est in technology upgradation, inno!ations and brand building exercise. /uch producti!e acti!ities re+uire huge "inancial resources. Hn"ortunately, the industry is not in a short notice with "uture expectations.

&he crux o" the issue is that the predominant mar et "or con"ectionery products e!en today exists in the urban, semi-urban and rural mar ets outlets and interestingly in the ;, C class outlets. (inety per cent o" sugars boiled con"ectionery products are priced at -B and B0 paise slots and the said end price at B0 paise has remained static "or the past 11 years due to coinage issue. &he next con!enient price slot a"ter B0 paise is Ge 1, which is double that o" B0 paise. In the pac aged "orm, the end price or the maximum retail price o" pac ages has "lexibility "or upward re!ision, whereas con"ectionery does not enIoy such price elasticity. &he urban and rural child as a !ery important consumer segment "or con"ectionery category has expectations "ar too higher than what it used to be. #t the same time, it is not geared up to pay more "or this product and continues to enIoy in buying the product in singular counts. &here"ore, the industry is compelled to "ocus maIority o" their brands in -B paise , B0 paise and some in the Ge 1 price slots e!en today. Policy initiati!es ta en by the .o!ernment, liberal re"orm measures and !arious tax bene"its, which include among others

De-licensing o" the entire sector #utomatic appro!als "or "oreign in!estment up to 100 percent except some products li e alcoholic be!erages and also technology trans"er. &ax exemption on agro-processing units and "ull exemption o" excise duty on dairy machines. =xemption o" all processed "ruits and !egetables products "rom Central =xcise Duty Lero duty import o" capital goods and raw material "or100 percent export oriented units. =xemption o" exports earnings "rom corporate tax. .o!ernment grant "or setting up o" common "acilities in #gro 2ood Par . #llowing use o" "oreign brand name.

&he central go!ernment should come "orward to extend support to the con"ectionery industry by suitably correcting the anomalies in the le!y o" central excise duty on

di""erent product segments o" it. Con"ectionery containing cocoa, chewing gums, and bubble gums are currently le!ied 16 per cent excise duty, which should be lowered to eight per cent as in the case o" sugar boiled con"ectionery. &he abatement on central excise should be uni"ormly increased "rom 6B per cent to 7B per cent &he state go!ernments should come "orward in reducing the C#& applicability "rom 1-.B per cent to 7 per cent. &he go!ernment should act "irm in dealing with IPG in"ringement issues by pro!iding separate courts and policing authorities throughout the country to chec such negati!e "orces. Considering the "act that the con"ectionery industry is pro!iding great business opportunity "or agro-based produce li e sugar, mil , butter, glucose etc, this industry should be explicitly brought under the category o" "ood processing nomenclature. &he raw materials "or con"ectionery products predominantly include sugar, glucose, mil and mil products apart "rom pac aging materials li e polyethylene and polyester "ilm etc. &he price o" sugar has gone up by 1- per cent to 1B per cent in the recent times and there seems to be no hope that this price would come down in the near "uture. /ugar prices in the world ha!e hit a -B-year high during 2ebruary -006 and this upward trend is li ely to continue with the increased use o" sugarcane in manu"acture o" bio "uel ethanol. &hese price hi es has hit the industry%s prospects !ery badly. &he emerging trends in con"ectionery in India cannot be di""erent "rom the trends existing in the global mar ets. &he pea customs duty, which has been reduced to 1-.B per cent in the recent Hnion ;udget, gi!es large scope "or entry o" imported "ood products, which should be a!ailable in the Indian mar et and soon may become more competiti!e. .lobal entrepreneurs seem to ha!e immensely gained with the recent customs duty reduction. &he Indian consumer is in "or great surprises to get the international brands o" chocolates and con"ectionery at his doorstep by paying the price in Indian currency. It is a welcome sign so "ar as the Indian consumer is concerned but "or the chocolate and con"ectionery industry the road map ahead seems to be tough and challenging where only the "ittest will sur!i!e.

COMPANY PRO,I.E

Cadbury is a leading global con"ectionery company with an outstanding port"olio o" chocolate, gum and candy brands. 0e employ around B0,000 people and ha!e direct operations in o!er 60 countries, selling our products in almost e!ery country around the world.In India, Cadbury began its operations in 1$78 by importing chocolates. #"ter 60 years o" existence, it today has"i!e company-owned manu"acturing "acilities at &hane, Induri @PuneA and *alanpur @.waliorA, ;angalore and ;addi@<imachal PradeshA and 7 sales o""ices @(ew Delhi, *umbai, Kol ota and ChennaiA. &he corporate o""ice is in *umbai.3ur core purpose >creating brands people lo!e> captures the spirit o" what we are trying to achie!e as a business.0e collaborate and wor as teams to con!ert products into brands. /imply put, we spread happiness M Currently Cadbury India operates in "our categories !i). Chocolate Con"ectionery, *il 2ood Drin s, Candy and .um category. In the Chocolate Con"ectionery business, Cadbury has maintained its undisputed leadership o!er the years. /ome o" the ey brands are Cadbury Dairy *il , B /tar , Per , Nclairsand Celebrations.Cadbury enIoysa !alue mar et share o" o!er 405 - the highest Cadbury brand share in the worldM 3ur "lagship brand Cadbury Dairy *il is considered the >gold standard> "or chocolates in India. &he pure taste o" CD* de"ines the chocolatetaste "or the Indian consumer.In the *il 2ood drin s segment our main product is ;ourn!ita - the leading *alted 2ood Drin @*2DA in the country. /imilarly in the medicated candy category <allsis the undisputed leader. 0e recently entered the gums category with the launch o" our worldwide dominant bubble gum brand ;ubbaloo. ;ubbaloo is sold in -B countries world wide./ince 1$6B Cadbury has also pioneered the de!elopment o" cocoa culti!ation in India. 2or o!er two decades, weha!e wor ed with the Kerala #griculture Hni!ersity to underta e cocoa research and released clones, hybrids that impro!e the cocoa yield. 3ur Cocoa team !isits "armers and ad!ises them on the culti!ation aspects "rom planting to har!esting. 0e also conduct "armers meetings , seminars to educate them on Cocoa culti!ation aspects. 3ur e""orts ha!e increased cocoa producti!ity and touched the li!es o" thousands o" "armers. <ardly surprising then that the Cocoa tree is called the Cadbury treeM 0e are per"ormance dri!en, !alues led. &hroughout changing times, our constant !alues ha!e inspired us to be pioneers in business and in corporate responsibility. &hey help ensure we are proud o" our company and are critical to our core purpose o" creating brands people lo!e. 3ur !alues are8Per"ormance 0e are passionate about winning. 0e compete in a tough but "air way. 0e are ambitious, hardwor ing and ma ethe most o" our abilities. 0e are prepared to ta e ris s and act with speed.
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Ouality 0e put +uality and sa"ety at the heart o" all o" our acti!ities - our products, our people, our partnerships and our per"ormance. Gespect We genuinely care for our business and our colleagues. We listen, understand and respond. We are open, friendlyand welcoming. We embrace new ideas and diverse customs and cultures. Integrity We always strive to do the right thing. Honesty, openness and being straightforward characterise the way we dobusiness. We have clear principles and do what we say we will do. Responsibility We take accountability for our social, economic and environmental impact. In this way we aim to make our business, our partners and our communities better for the future.Our Business rinciples are our code of conduct and also take account of global and local cultural and legal standards. !hey confirm our commitment to the highest standards of ethics and business conduct. "ore purpose and vision section# "ore purpose# Our core purpose is creating brands people love. !he core purpose captures thespirit of what we are trying to achieve as a business.

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ITS .EADING G.OBA. BRANDS ARE: ;e!erages - Crush, Dr Pepper, Indian &onic 0ater, Canada Dry, Crystal 'ight. Con"ectioneryP chocolate - Dairy *il , *r. ;ig, &imeout, &wirl, Per , /our Patch, <a)el (ut, &emptations, Celebration, B /tar, Double dec , ;yte, 2ruits and (uts, Chocobix. P.ANT .OCATIONS: Cadbury%s manu"acturing operations started in *umbai in 1$76, which was subse+uently trans"erred to &hane. In 1$67, Induri 2arm at &alegaon, near Pune was set up with a !iew to promote modern methods as well as impro!e mil yield. In 1$81-8-, a new chocolate manu"acturing unit was set up at the same location in &alegaon. &he company, way bac in 1$67, pioneered cocoa "arming in India to reduce dependence on imported cocoa beans. &he parent company pro!ided cocoa seeds and clonal materials "ree o" cost "or the "irst 8 years o" operations. Cocoa "arming is done in Karnata a, Kerala and &amil (adu. In 1$44, the company also too steps to promote higher production o" mil by setting up a subsidiary Induri 2arms 'td near Pune. In 1$8$, the company set up a new plant at *alanpur, *P, to deri!e bene"its a!ailable to the bac ward area. In 1$$B, Cadbury expanded *alanpur plant in a maIor way. &he *alanpur plant has moderni)ed "acilities "or .ems, Nclairs, and Per etc. Cadbury also operates third party operations at Phalton, 0arana and (ashi in *aharashtra. PROMOTIONA. STRATEGY &o step-up chocolate penetration in India across strata, the Gs B68.18- crore Cadbury India 'td has relaunched B /tar with a new brand proposition o" 9non-stop energy:, an extension o" the earlier proposition o" 9an energy bar:. In an attempt to le!erage the brand proposition amongst youth E who "orm the core target segment E the company plans to underta e a series o" on-ground promotional acti!ities combined with extensi!e outdoor ad!ertising and tele!ision campaigns. &he 9 uch meetha ho Iaaye 9 and man main ladoo phoota and Cadbury /il

ad!ertisement has success"ully been able to lea!e a mar on the people%s mind and hence created strong mar et presence "or Cadbury.

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#s an e""ort to communicate the core ethos o" the brand to a broader youth audience, the company has also tied-up with youth 0ebsites such as (((8hu#'ama86$m, (((8i#&%a86$m and (((86 i6i#9$86$m as a part o" the promotional strategy. =laborating the rationale behind the current series o" integrated communication initiati!es that the company has embar ed, the spo esperson o" Cadbury India in"orms8 93ur principle obIecti!e is to moderni)e B /tar%s brand image and enhance youth connect. &hrough e""ecti!ely communicating the "unctional attribute o" B /tar along with the "un elements associated with chocolate, we intend to ma e the brand the 9top o" mind: energy enhancer in the youth%s li"e space. &hus ma ing B /tar the constant companion o" the constantly charged Indian youth:. &he company also plans to consolidate its penetration strength by means o" hardcore distribution-dri!en product de!elopment strategies. &he distribution networ ing too "orms a part o" the integrated brand de!elopment plan. &he impulse mar et is growing at the rate o" around 7 to 6 per cent annually.

MARKET EN+IRONMENT GEOGRAPHICA. MARKET: Cadbury%s products are widely a!ailable in


e!ery .rocery shops, con"ectionery shops, schools and canteens.

P1!t A#al%!i!
P8 /ince the budget range is decontrolled, no political e""ects are en!isaged. =8 1A Increasing per capita income resulting in higher disposable income. -A .rowing middle classPurban population J increase in demand. 6A 'ow cost o" production J better penetration. /8 1A Per capita consumption expected to increase J "ashion. -A Increasing gi"ts culture J increase in demand . 6A 'ower cholesterol than 9mithais: @sweet meatA subsbstitute demand.

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&8 0ill ha!e to rein"orce technology to international le!els once India is a 9"ree: economy. Ca&bu % ha! b11# !%#$#%m$u! (ith 6h$6$lat1 !i#61 *:-; , when Qohn Cadbury opened his "irst shop, establishing a "lourishing dynasty that today pro!ides the world with many o" its "a!ourite brands o" chocolate. Th1 Ca&bu % !t$ % i! a 9a!6i#ati#' !tu&% o" industrial and social de!elopment, co!ering well o!er a century and a hal". It shows how a small "amily business de!eloped into an international company combining the most sophisticated technology with the highest standards o" +uality, technical s ills and inno!ation. A $#1)ma# bu!i#1!!< $p1#1& i# *:-; b% a %$u#' =ua21 , Qohn Cadbury, in ;ull /treet ;irmingham, was to be the "oundation o" Cadbury 'imited, now one o" the worldRs largest chocolate producers. ;y 1861 the business had changed "rom a grocery shop and Qohn Cadbury had become a manu"acturer o" drin ing chocolate and cocoa, the start o" the Cadbury manu"acturing business, as it is nown today. Th1 l1a&1 i# th1 UK 6$#916ti$#1 % ma 21t , Cadbury 'imited is the con"ectionery di!ision o" Cadbury /chweppes plc, a maIor "orce in the con"ectionery and so"t drin s international mar et. Ouality has been the "ocus o" the Cadbury business "rom the !ery beginning, as generations ha!e wor ed to produce chocolate with the taste, smoothness and snap characteristic o" Cadbury chocolate.

MARKET SHARE O, ITS PRODUCTS


Cadbury IndiaRs main source o" re!enue is its 405 bite o" the -6,000 tonnes Indian chocolate mar et. It is also present in the malted "ood mar et @;ourn!ita enIoys a -7 percent share o" the -0,000 tonnes brown drin s mar etA. 3" late, the company has !entured into the 1-0,000 tonnes sugar con"ectionery mar et and has gained about B5 mar et share there. &he re!enue brea up o" its di""erent business segments is as "ollows8 Despite the "act that Indians ha!e strong a""inity "or sweets, the si)e o" domestic con"ectionery mar et is small on account o" traditional consumer tastes and habits.

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&he Chocolate mar et in India is a niche mar et penetrated largely in urban areas and per capita consumption is low as compared to those in de!eloped countries o" the 0est. ;ut "uture prospects o" the chocolate category loo s good as the company plans to mo!e into the arena o" snac "oods, as it has done in the 0estern mar ets. &he mar et "or *alted "ood drin s is large and is characteri)ed by a "ew large players. &he mar et can be broadly segmented into white malted "ood drin s which dominates in the /outhern and the =astern parts o" the country and ;rown *alted "ood drin s which dominate in the (orth and the 0est. 'arge brands li e ;ourn!ita and <orlic s dominate in *alted "ood drin s sector and the growth has been steady in the last "i!e years. &he "uture mission o" Cadbury India is R# Cadbury in =!ery Poc etR. &he companyRs business strategy hinges on "ollowing "or dri!ing its "uture growth8 Increase the width o" chocolate consumption, through low price point pac s and distribution "ocus. Increase depth o" consumption, targeting regular chocolate consumers through generating impulse and a dominant presence at Point o" /ale. *aintain image leadership through a superior mar eting mix. ;e a signi"icant player in the gi"ting segment, through occasion lin ed gi"t pac s. ;uild critical mass in the sugar business by introducing !alue-added sugar con"ectionery products. 2uture re!enue growth will be through increasingly higher !olumes rather than price increases. &he management belie!es that price increase can only be a short-term obIecti!e. It is !olumes, which are !ery important to achie!e the long-term goal o" ha!ing a wide consumer base. &he company sees its growth in "uture in mar et expansion and new product launches. Increased reach, new launches, higher mar eting spend and intensi!e promotions - the mix, Cadbury is loo ing at to "uel its "uture growth. &he company is also loo ing "or ac+uisition o" brands, and its huge cash reser!es might be utili)ed "or the purpose.

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,OUNDING O, THE CADBURY BUSINESS


Th1 9$u#&i#' $9 th1 Ca&bu % bu!i#1!! dates bac to 1861 when Qohn Cadbury "irst made cocoa products on a "actory scale in an old malt house in Croo ed 'ane, ;irmingham. I# *:;> th1 bu!i#1!! m$"1& t$ la '1 p 1mi!1! in ;ridge /treet, which had its own pri!ate canal spur lin ing the "actory !ia the ;irmingham (a!igation Canal to the maIor ports o" ;ritain. Bu!i#1!! 6$#ti#u1& at th1 B i&'1 St 11t !it1 "or 6- years and by 1848 the wor "orce had expanded to -00, so more space was needed. &his heralded the mo!e to ;oon!ille and the building o" what is now one o" the largest chocolate "actories in the world. J$h# Ca&bu % 1ti 1& i# *:?* handing o!er the business to his eldest sons Gichard and .eorge. It is to their leadership that the success o" the enterprise is owed as the company prospered.

1B

Sal1! !t u6tu 1 $9 Ca&bu % I#&ia .imit1& Cadbury India 'imited

Core ;usiness @/KH S Gs. BA - Chocolates - Drin s - /nac s - Chocolates /ales &eam

*ass *ar et @/KH T Gs. BA - =clairs - 'ollipop - *ass *ar et based

Core ;usiness &eam

*ass *ar et &eam

*odern &rade &eam

&rade

&raditional &rade

*odern &rade

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St u6tu 1 $9 Sal1! T1am $9 a R1'i$# i# Ca&bu %

G*

;/*

#/*

/3

P/* P &/I P /= =ntire business o" Cadbury India 'imited is di!ided into two maIor categories on the basis o" selling price o" an /KH @/toc Keeping HnitA.Core business constitutes o" all those products "or which price o" an /KH is more than Gs. B and the other products that are priced below Gs. B constitute mass mar et. Chocolates such as Dairy *il , 2i!e star, Per etc along with drin s li e ;ourn!ita and /nac s such as ;ytes "orm the Core ;usiness o" Cadbury India 'imited. *ass mar et deals with products li e to""ees such as =clairs, <alls along with lollipops and chocolates that are priced below Gs.B. 3n the basis o" distinction o" business into categories li e core business and mass mar et, the entire sales !olume isi handled by three teams which are Core business &eam, *ass *ar et &eam and *odern &rade &eam. Core business and *ass *ar et together constitute the traditional trade o" Cadbury India 'imited. &here is one more category, which is called as *odern trade, which ta es care o" both core business and *ass *ar et products, but the area is speci"ically restricted to big *alls and Getail stores.

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&here are "our regional sales o""ices o" Cadbury India 'imited each at (ew Delhi, Kol ata , Chennai and *umbai, which ta es care o" the entire northern , eastern , southern and western regions respecti!ely. =ach regional o""ice is controlled by a Gegional or ;ranch manager, which directly wor s under Director o" sales. =ach region is under a Gegional *anager @G*A which is assisted by 6 to 7 ;ranch /ales *anagers @;/*A. #rea /ales *anagers @*ar et De!elopment *anager is also an #/* and is a speciali)ed category in *odern tradeA wor under ;ranch /ales *anager. =ach #/* is helped by 6 to 7 /ales 3""icers @/3A. &he lowest le!el in the sales department comprises o" Pilot /ales *an @P/*A, &erritory /ales In charge @&/IA or /ales =xecuti!e @/=A. # beat consists o" all outlets that a sales man would !isit on a routine basis in a day. /o suppose there are $00 outlets in a city and a sales man wor on a "i!e days a wee basis, i" the beat is 60 then 6 sales man will be re+uired to co!er the entire city. ;eat U (o. o" wor ing days a wee U (o. o" sales *en V (o. o" 3utlets

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Cha##1l !t u6tu 1 $9 Ca&bu % I#&ia .imit1&:

2actory

0arehouse

Gegional Distribution Centre

Carry 2orward #gents

Gegional Distributor

Getailer

0holesaler

=nd Customer

1$

Cadbury India 'imited has its 2actories at /ix locations in India out o" which some are dedicated to the production o" "ew products while the others produce the entire range o" products. &hese "actories are associated with warehouses, which may be owned by company or by third party. 0arehouses pro!ide a storage area "or the input raw materials. &hey are also used to store 0IP @0or in ProcessA and "inished goods. 0hene!er the need arises the "inished goods "rom the "actories are ta en to the Gegional Distribution Centers @GDCA, which is "our in number. &hese Gegional Distribution Centers recei!e, store and dispatch "inished goods and are company owned. 2rom the Gegional Distribution Centers, the "inished goods reach to C2#s @Carry 2orward #gentsA. C2#s do the wor o" carrying, "orwarding, processing, billing , collection and stoc eeping. GDCs and C2#s do the same type o" Iob but the di""erence is that C2#s wor at a much lower le!el than the GDCs.C2#s are at depot le!el where as GDCs are at regional le!el. 2rom C2#s the "inished goods go into the hands o" Gedistributors and thus change o" ownership ta es place. #t this le!el sales are reali)ed and company generates re!enue. 2rom Gedistributors the "inished goods go into the hands o" wholesalers and retailers. /ometimes the retailers buy directly "rom distributor where as some times the chain includes wholesaler as well. &he end customers then purchase the products "rom these wholesalers or retailers. ;oth redistributors and retailers ta e their margins be"ore selling the "inal product to customers. &he margins o" retailers on !arious Cadbury products are shown in the table. In direct account transactions a large Getail store li e /ubhi sha places it orders through distributor but gets the products at the distributor rates without any margin. (ormally distributor has a margin o" 65 where as retailer gets a margin o" 1-5. /o in this case suppose the distributor gi!es a margin o" 1B5 to /ubhi sha as it has "oregone its margin o" 65, it can claim that margin o" 65 "rom Cadbury India 'imited.

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Ma 'i#! at "a i$u! l1"1l! $9 Cha##1l

Distributor

Getailer

Customer

Input Cost

@*arginA 3utput @*arginA 3utput Geali)ation Geali)ation

A"1 a'1 Ma 'i# 9$ R1tail1 !

Product Chocolates Drin s /nac s &o""ees

*argin @in 5A 1$ 16 1B

-1

Di 16t A66$u#t T a#!a6ti$#!: Cadbury Depot Getail /tore Depot

Cia Gedistribute

T a&1 St u6tu 1 $9 Ca&bu % I#&ia .imit1&


Cadbury

Getail - Purple /tar 3utlets - &op =nd 3utlets - *ain Getail

*odern &rade - *alls

(ew Channel De!elopment

Institutional - <ospitals - Canteens

*odern &rade

.i"t /hop

/weet /hop

Call Centre

Gegional Chain

(ational Chain

/tand-alone store

&he entire trade o" Cadbury can be di!ided into two broader categories such as Getail and *odern &rade. Getail category consists o" top end stores and purple star outlets, which achie!e a speci"ic sales target.

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3n the other hand, modern trade deals with big malls etc. *odern trade ta es care o" "inding new ways to increase the business !olume through new channel de!elopment. (ew channels include gi"t shops, sweet shops that use chocolates "or ma ing bar"i and some other sweets etc. *odern &rade also aims at enhancing the sales through Institutional customers li e hospitals, college canteens, corporate clients etc. *odern trade caters to the needs o" big retail chains, which may be regional or national @'i e Pantaloons , ;ig ;a)aar , Geliance etcA and also stand alone stores li e /pice, which is present in only one city. ;ac ed by an array o" popular brands and inno!ati!e ad!ertisement campaign, Cadbury India has car!ed a niche "or itsel" in the domestic chocolates mar et. #t present, it enIoys a dominant share o" about 40 per cent in this segment. &he popular brands in its "old include Dairy *il , 2i!e /tar, =clairs, .ems and Per . &he company also has a presence in the malted "ood drin business through the ;ourn!ita brand. &he chocolate business accounts "or the bul o" CadburyRs re!enues and the malted-"ood drin "or a little o!er -0 per cent to the total re!enues. #bout 111- per cent "lows "rom the sugar con"ectionery business. #ided by a combination o" "actors, the company has managed to post a steady growth in per"ormance in recent years. Inno!ati!e ad!ertisement and promotional campaign, !ariation in product-cum-price mixes, and expansion o" the distribution networ are the ey "actors behind the recent growth in per"ormance. <owe!er, the "irm trend in the price o" cocoa -- the ey raw material -- has tended to cap the growth in pro"itability. #& present, Cadbury India @CI'A ran s 8 th in Cadbury /chweppes @C/A in terms o" pro"it @P;I&A. H.K., #ustralia, Canada and Ireland are ahead o" India. #s India is emerging mar et, "ocus is on India. &here are huge opportunities in India. 2eb% 06 the parent company Cadbury /chweppes increased its share "rom 7$ 5 in -00B to $7 5. &he consideration "or that increase in sta e was around W111 million and buying out the minority shares did it.

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*aIor #chie!ements o" Cadbury


0orlds (o 1 Con"ectionery company 0orldRs (o - .ums company. 0orldRs (o 6 be!erage company. Cadbury Dairy *il , ;ourn !itas ha!e been declared a >Consumer /uper brand> "or -006-4 by /uper brands India. Cadbury India has been ran ed Bth in the 2*C. sector, in a sur!ey on IndiaRs most respected companies by sector conducted by ;usiness 0orld maga)ine in -004. Cadbury India was recogni)ed as one o" the India%s best managed Companies in -00- by ;usiness &oday and #& Kearney. It was also adIudged one o" the India%s -B great places to wor in -006 and -007 by ;usiness 0orld and .row &alent. &he Qune -006 issue o" ;usiness today identi"ied Cadbury India as one o" IndiaRs best-managed companies in -006. Cadbury India was lauded "or its !alue creation, "or its strategy o" "ocusing on power brands, and its aggressi!e "oray into the low end mar et with Choc i as well as launches at the top end. Cadbury succeeded in reducing the impact o" the slow down in the Indian 2*C. industry , was also recogni)ed "or its inno!ation and consistent de!elopment o" new products "or consumers in India.

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Ma 21ti#' Mi@
D19i#iti$# *ar eting mix is the combination o" elements that you will use to mar et your product. &here are "our elements8 Product, Place, Price and Promotion. &hey are called the "our Ps o" the mar eting mix. M6Ca th% i&1#ti9i1& th1 9$u PA! $9 th1 ma 21ti#' mi@:

P $&u6t - De"ining the characteristics o" your product or ser!ice to meet the customersR needs. A '$$& p $&u6t ma21! it! ma 21ti#' b% it!1l9 b16au!1 it 'i"1! b1#19it! t$ th1 6u!t$m1 8 /uppose now that the competitors products o""er the same bene"its, same +uality, same price. Xou ha!e then to &i991 1#tiat1 your product with design, "eatures, pac aging, ser!ices, warranties, return and so on. In general, di""erentiation is mainly related to8

-&he design8 It can be a decisi!e ad!antage but it changes with "ads. 2or example, a "un board must o""er a good and "ashionable design adapted to young people. -&he pac aging8 It must pro!ides a better appearance and a con!enient use. In "ood business, products o"ten di""er only by pac aging. -&he sa"ety8 It does not concern "un board but it matters !ery much "or products used by ids. -&he >green>8 # "riendly product to en!ironment gets an ad!antage among some segments. P i61 - (o matter how good the product is, it is unli ely to succeed unless the price is right. &his does not Iust mean being cheaper than competitors. *ost people associate a higher price with +uality. =!en i" you decide not to charge "or a ser!ice, it is use"ul to realise that this is still a pricing strategy. Identi"ying the total cost to the user @which is li ely to be higher than the charge you ma eA is a part o" the price element. Price means the pricing strategy you will use.
-B

P $m$ti$# - &he main aims o" promotion are to persuade, in"orm and ma e people more aware o" a brand, as well as impro!ing sales "igures. Th1 9u#6ti$# $9 p $m$ti$# i! t$ a9916t th1 6u!t$m1 b1ha"i$ i# $ &1 t$ 6l$!1 a !al18 &his includes ad!ertising, personal selling @eg attending exhibitionsA, sales promotions @eg special o""ersA, and atmospherics @creating the right impression through the wor ing en!ironmentA. Public Gelations is included within Promotion by many mar eting people @though PG people tend to see it as a separate disciplineA.

Promotion includes mainly three topics8 -#d!ertisement8 It ta es many "orms8 &C, radio, internet, newspapers, yellow pages, and so on. -Public relations8 Public relations are more subtle and rely mainly on your own personality. 2or example, you can deli!er public speeches on subIects such as economics, geo-economics, "uturology to se!eral organi)ations @ci!ic groups, political groups, "raternal organi)ations, pro"essional associationsA. -/ales promotion8 It includes "air trades, coupons, discounts and are lin ed to the sales strategy. Pla61 $ Di!t ibuti$# - 'oo ing at location @eg o" a libraryA and where a ser!ice is deli!ered. # crucial decision in any mar eting mix is to correctly identi"y the distribution channels. &he +uestion B h$( t$ 1a6h th1 6u!t$m1 B must always be in your mind. &he place is where you can expect to "ind your customer and conse+uently, where the sale is reali)ed. Knowing this place, you ha!e to loo "or a distribution channel in order to reach your customer. &he place is not where is located your business but where your customers are. &he choice o" your distribution channel hea!ily depends on your product and place in the producti!e process.

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MARKETING O, CADBURY BRAND


PRODUCT STRATEGY Cadbury%s range o" Chocolate is the premium brand under the product range o" Cadbury%s Chocolates. Its an assortment o" a range o" raisins, "ruits and other "la!ours with a Chocolate +uoting, the range are a translation o" di""erent up mar et consumer pre"erences into a premium range o" "la!ored chocolates. &he products has been speci"ically placed in the segment o" assorted and gi"t chocolates, gi!es the consumer the goodness o" chocolate with "la!ours o" honey, blac "orest, cashew etc. and its ad says 9&oo .ood to /hare:. PACKAGING During the *ar et Gesearch I "ound out that the pac aging is also one o" important reason buyers consider be"ore the buy chocolates. I "ound out that all the big players eep on changing there pac aging a"ter e!ery six month or they change it according to "esti!als and other di""erent occasions. &his is due to the "act that most o" the chocolates buying decisions are impulse momentary decision when one sees a chocolate in a shop then he ma es an on the spot decision to buy or not to buy. *ost o" the people decide to buy the chocolate only i" they "ind the pac aging attracti!e. /o, what the companies bene"it the most by changing the pac aging e!ery 6-month is that, the chocolate doesn%t go stale. It always loo s li e a new product. 'i e in case o" Celebration only a"ter seeing the pac aging o" chocolate buyers "eel tempted to buy it.

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-8

PRICE STRATEGY

S.8NO 1. -. 6. 7. B. 6. 4. 8.

PRODUCT D#IGX *I'K P=GK 2IC= /&#G /il .=*/ ;X&=/ &=*P&#&I3( C='=;G#&I3(

PRICE Gs10 Gs. 10 Gs. 10 GsBB Gs. B Gs. 10 Gs. 6B Gs. 100

-$

PROMOTIONA. STRATEGY
In an attempt to le!erage the brand proposition amongst youth E who "orm the core target segment E the company plans to underta e a series o" on-ground promotional acti!ities combined with extensi!e outdoor ad!ertising and tele!ision campaigns. &he new tele!ision commercial shows a towering s yscraper as the montage. 2rom there the camera )ooms straight to a mid close-up o" a teenaged girl who is anxiously awaiting the arri!al o" her boy"riend. #s the boy"riend gets delayed, the scene gets cut to the next shot where the girl rushes into a li"t. In a series o" +uic continuous !isual cuts the girl is displayed as going "rom one "loor to the other. =!ery "loor the girl opens the door she is sure to spot her boy"riend ready to welcome her with a bou+uet. In the parting scene the girl "inally gi!es up and the boy hugs her and the lo!ers unite "or a romantic retreat. &he camera immediately )ooms to a close-up o" the B /tar with its stri ing new pac age. #s an e""ort to communicate the core ethos o" the brand to a broader youth audience, the company has also tied-up with youth 0ebsites such as (((8hu#'ama86$m, (((8i#&%a86$m and (((86 i6i#9$86$m as a part o" the promotional strategy. =laborating the rationale behind the current series o" integrated communication initiati!es that the company has embar ed, the spo esperson o" Cadbury India in"orms8 93ur principle obIecti!e is to moderni)e B /tar%s brand image and enhance youth connect. &hrough e""ecti!ely communicating the "unctional attribute o" B /tar along with the "un elements associated with chocolate, we intend to ma e the brand the 9top o" mind: energy enhancer in the youth%s li"e space. &hus ma ing B /tar the constant companion o" the constantly charged Indian youth:. &he company also plans to consolidate its penetration strength by means o" hardcore distribution-dri!en product de!elopment strategies. &he distribution networ ing too "orms a part o" the integrated brand de!elopment plan. &he impulse mar et is growing at the rate o" around 7 to 6 per cent annually.

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BRANDS
Cadbury began its operations in 1$78 by importing chocolates and then re-pac ing them be"ore distribution in the Indian mar et. #"ter B$ years o" existence, it today has "i!e companies owned manu"acturing "acilities at &hane, Induri @PuneA, *alanpur @.waliorA, ;angalore and ;addi @<imachal PradeshA. #lso it has "our sales o""ices at (ew Delhi, *umbai, Kol ata and Chennai. *aIor Products in its port"olio are8 Chocolates

P.ACE STRATEGY
Gange o" Chocolate can be bought "rom almost anywhere? Cadbury%s has placed the chocolates through its huge all India networ o" Distributor , Getailers apart "rom that the range can be bought on line "rom a number o" websites including its own. &he Placement o" has been eeping in mind the perishable nature o" chocolates, which need a special "ree)er to sur!i!e, which is pro!ided by the company to the retailers. &he shel" space , !isibility is !ery important to achie!e the targeted o"" ta e "or the company there"ore the "ree)er is almost always !isible at retailers selling Cadbury%s range also it can be stated that is almost always !isible. Pu 6ha!1 &16i!i$# b1ha"i$ &he mar et today is "looded with chocolates o" !arious company%s brands. *ost o" these chocolates come in di""erent weights and si)es. &he buyer has a !ery large range to choose "rom. Di""erent buyers ha!e di""erent reasons "or there particular choice. ;ecause o" the large number o" chocolates in the mar et it becomes !ery di""icult to "ind out exactly why people buy a particular chocolate. &he best way to answer this +uestion is to loo at how people buyY &his is how the purchase decision beha!ior o" the buyer. &he purchase decision beha!ior doesn%t only mean what to buyY ;ut also "rom where to buyY Issues in the purchase decision beha!ior8 i.A ii.A iii.A Predetermined decision Point o" purchase decision In"luencer
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i8C P 1&1t1 mi#1& &16i!i$#: Predetermined decision is when the buyer is decided about the choice o" what he has to buy. &his pre-determined decision o" his a lot to do with *oti!ation, learning, Income .roup, 'i"estyle, /ocial Class and exposure to promotional campaigns. =ach one o" these "actors has in"luence o" !arying degree on the purchase decision beha!ior o" the buyer. a8C M$ti"ati$#: *allow%s theory o" moti!ation can help us a lot in understanding the purchase decision beha!ior o" buyers. 2or some people chocolates is the ideal way to express lo!e and a""ection and belongingness "or someone @#mul%s J a gi"t "or someone you lo!e.A 'i e in case o" *r. /aurabh, he buys and present chocolates to people who they lo!e or with whom they want to build a relationship with. /ome people eat chocolates because they "ind it a show o"" ind o" a thing "or eating expensi!e chocolates, although these people are "ew in numbers but cannot be neglected. # student o" Delhi Public /chool thin s, to eat expensi!e chocolates is necessary to maintain his standard. /ome people eat chocolates only because they li e it and "or no other reason at all? brand loyalty is the strongest among these types o" buyers. 'i e *r.D.K./harma, a retired old man eats only B /tar and !ery o"ten because he li es it. <e says he is addicted to it and can eat it anytime anywhere? he does not eat any other chocolate. &his case is !ery well identi"iable with the sel"-actuali)ation needs in the *eslow%s theory o" moti!ation. <ere *r. ;.K./ingh, is not concerned with what people thin o" him. <e eats the B/tar unconcerned "or !iews and perceptions about him Iust because he enIoys a B-/tar. b8C .1a #i#': Pre!ious experience about the chocolate plays a !ery important role in pre-determined decisions o" a buyer. #ny repurchase, acceptance, reIection o" a

6-

chocolate or a related brand will ha!e an e""ect on a person%s decision to buy a chocolate. 68C .i91!t%l1 a#& S$6ial 6la!!: 'i"estyle and social class also play a !ery important role in a buyer%s decision to buy a particular chocolate. &his is where positioning becomes a !ery important issue. &8C I#6$m1 G $up D&i!p$!abl1 m$#1%C: &his is one o" the most important and ob!ious reasons "or a buyer%s predetermined decision. # buyer is going to buy a gi!en chocolate in a gi!en price range only when he has that much money to spend @disposable moneyA or that his income is so much that he can Iusti"y the purchase. 18C E@p$!u 1 t$ p $m$ti$#al 6ampai'#!: =xposure to promotional campaigns also play a !ery important role in predetermined decisions "or purchase, e.g. repeated exposure to a !ery appealing ad!ertisement is more li ely to e""ect one%s purchase decision beha!iour e.g. most o" the people who under want this test attributed their decision on to good ad!ertising and promotional campaigns. ii8C P$i#t $9 Pu 6ha!1 D16i!i$#: Point o" purchase decision is where the buyer decides about the product on the spot. &hese on the spot decision are basically dependent on8 1.Cisibility -.Pac aging 6.Price *8 +i!ibilit%: &he product should be !isible so that the producti!e buyer can be attracted and induced to buy. -8 Pa62a'i#': Pac aging is !ery critical to a particular brand%s success or "ailure. &he pac aging, the brand name, the logo etc. assist in the !isibility o" the product, ma es it stand out against the competition. *ost o" the buyers that underwent the perception test attributed their decision to purchase a particular product to the pac aging. &he importance that the companies ha!e been gi!ing to the pac aging o" their chocolates is the strongest e!idence to this point.

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SA.ES PROMOTION I. Diwali Promotion .i"t Pac with special pac ing was launched at !arious retail counters as well as websites at a special mrp o" Gs100. II8Ouantity purchase scheme "or customers8 3n purchase o" B pcs o" &emptations one special pen with Cadbury inscription "ree. III. Ouantity purchase scheme "or retailers8 Getailers "or a one time purchase o" Gs8000 or more worth o" chocolates would get a mini "ridge "or storing Chocolates in their shop which would remain with them as company property till they retail Cadbury Chocolates. IC. Ouantity purchase scheme "or Distributors

0ith purchase o" Gs B000 or more worth o" Cadbury Chocolates and a minimum o" 705 o" this as &emptations the distributor can claim an additional -5. E8 P i61: Price is another !ery important "actor. /ome people decide on buying a particular chocolate because they thin its price to be good according to the product, some want to buy expensi!e chocolates. /o they go "or the ones, which cost lesser. &hese decisions are dependent to a great extent on moti!ation and disposable money. &his is why companies ha!e chocolates in di""erent weights and in di""erent price slots. iii8CI#9lu1#61 !: In"luencer is someone who can in"luence to buy a particular chocolate. In"luences can be personal and non personal @non-li!ingA. *8P1 !$#al I#9lu1#61 !: &he personal in"luencers can be classi"ied into two categories.

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a8 Th1 !h$p211p1 F &he shop eeper acts as a !ery big in"luencer, he can ma e your decision to buy a particular chocolate by stressing on its strength or brea your particular decision by discouraging your decision. b8 Oth1 ! DPa 1#t!< , i1#&! 1t68C F &hese are the in"luencers li e parent or "riends who can according to their perceptions, in"luence a buyer%s decision.

PG3DHC&

Pre-determined decision

P'#C=

Point o" Purchase Decision Personal In"luence (onPersonal

6B

CONSUMPTION G CONSUMER
.i91!t%l1 Ch$6$lat1 C$#!umpti$# Cadbury%s are mar ets are currently HK, Ireland, #ustralia and (ew Lealand. &he Cadbury brand is !ery well nown in these mar ets and consumers ha!e established patterns o" chocolate consumption. Ireland has one o" the largest consumption rates in the world along with /wit)erland. In Ireland alone, the a!erage person eats 8 g o" chocolate and 6 g o" sweets each year. In ey areas such as these, the Cadbury brand has secured signi"icant brand status. In Ireland, Cadbury has identi"ied three ey consumer segments o" 1impulse%, 1ta e home% and 1gi"t%. &hese segments re"lect consumers% decision-ma ing processes. 2or example, impulse purchases are typically products bought "or immediate consumption, e.g. single bars. &a e <ome con"ectionery is generally bought in a supermar et and is most o"ten dri!en by a speci"ic need. # speci"ic need or usage can be an occasion, e.g.% I need something "or the lunchbox%. <ere consumers ma e more rational decisions, e.g. brand in"luence, priceP!alue relationship. &hese areas are "urther subdi!ided, "or example the 1gi"t% sector comprises special occasions @birthdays, Christmas, etc.A and to en or spontaneous gi"ts. I" mar eters success"ully identi"y and isolate consumer segments in this way, it becomes easier to target products and ad!ertising in a more meaning"ul way to increase consumption N1( P $&u6t! R19l16ti#' C$#!um1 .i91!t%l1! N1( p $&u6t &1"1l$pm1#t has played a ey role in de!eloping mar ets as brands stri!e to o""er something to a consumer that is truly di""erent. 0e ta e a crumbly "la e texture or honeycomb "or granted but, when introduced, they were remar ably inno!ati!e. Changing li"estyle patterns? eating on the go, and impulse snac ing has and continues to play a pi!otal role in the con"ectionery mar et. Continued snac ing or 1gra)ing% has replaced traditional mealtimes "or many people.

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&he Cadbury product range addresses the needs o" each and e!ery consumer, "rom childhood to maturity, "rom impulse purchase to "amily treats. 2or example an analysis o" the 1gi"t% sector highlights the importance o" de!eloping inno!ati!e products to address speci"ic mar ets. Cadbury designs products to coincide with Christmas, =aster, Calentine%s, *other%s and 2ather%s Day and other calendar

landmar s. Cadbury use mar eting strategies such as the 1Choose Cadbury% strategy to encourage a lin between chocolate and these e!ents ensuring there is a Cadbury chocolate product suitable and a!ailable "or e!ery occasion.

/h% A&"1 ti!i#' i! u!1& t$ p $m$t1 a B a#& &he con"ectionery mar et is "ull o" brands that need to "ight "or our attention. &he role o" ad!ertising is to eep a brand in the mind o" the consumer. 0e are constantly presented with countless brand images and messages on a daily basis. During the li"etime o" a brand, companies will de!elop mar eting strategies that communicate brand identity and core !alues to gain our attention. In order to eep its product competiti!e and contemporary, these messages need to change o!er time. Cadbury pro!ides one o" the most success"ul examples o" how an ad!ertising message can be modi"ied "rom one campaign to the next to attribute new

64

!alues to a brand gi!ing consumers more reasons to buy Cadburys. <ealthy brand e+uity or brand strength is critical in an impulse-dri!en, competiti!e mar et. #d!ertising plays a ey role in maintaining this strength. Cadbury employs all types o" ad!ertising "rom the Internet to posters, "rom &C, radio and cinema to print media. &his same creati!e message is then communicated through point o" sale, merchandising, pac age design and public relations.

=arlier this year, Cadbury introduced a new global mar eting strategy called 1Choose Cadbury%. &his strategy came about as a result o" extensi!e research into consumer beha!ior and perception. It is a campaign that per"ectly illustrates how a brand can e!ol!e and how di""erent messages can be communicated without losing the core strength and brand !alues that are already established. &he classic icons ha!e played a maIor role in establishing the loo and "eel o" how Cadbury%s ad!ertisements should loo through successi!e campaigns. &hese ey 1loo and "eel% icons were hea!ily researched to ensure that the messages they impart are always rele!ant to the Cadbury consumer. In depth customer research is conducted to 1test% these messages. Gesearch results con"irmed that color recognition o" dar purple is strongly associated with Cadbury. Its logo is readily recogni)ed and scores a ninety six per cent recognition le!el alongside other global brands such as Coca Cola and *cDonalds. &he glass and a hal" symbol, which plays a ey role in the current 1Choose Cadbury% strategy, continues to communicate the +uality and superior taste o" Cadbury%s chocolate. &he central message o" the 1Choose Cadbury% strategy hinges on the established glass and a hal" symbol. Is the glass hal" "ull or hal" emptyY Cadbury suggests that the glass is always hal" "ull appealing to our emotions. &here"ore, in choosing Cadbury we are ta ing a decision to embrace the positi!e. &his optimistic metaphor is, according to consumer testing in the HK and #ustralia, well understood amongst consumers. In this 1Choose Cadbury% campaign, the product ingredient o" mil has been ele!ated "rom a practical, rational plat"orm to an emotional one Cadbury can deli!er on optimism, happiness and a "eel-good "actor. I" a brand can do all this, the decision to purchase this brand o!er all other chocolate brands seems to be logical and ine!itable.

68

&he 1Choose Cadbury% strap line is a call to action designed to moti!ate us. 0e are not expected to simply absorb the ad!ertising message, we are being called upon to ma e a conscious purchase decision. 0e are reassured that the Cadbury product will remain unchanged, @Cadbury is Chocolate and it still tastes goodA, but we are gi!en more reasons to remain brand loyal @Cadbury is Chocolate J "eels good i.e. positi!e, upli"ting, mood enhancing, pro!iding enIoyment and happinessA. #t no stage in the e!olution o" the Cadbury brand has there been as much reliance on ta ing ownership o" the emotional side o" eating chocolate as there is now. 3wning the emotional territory "or chocolate helps Cadbury to ele!ate its product in the mind o" the consumer. 0ith the 1Choose Cadbury% campaign consumers are being o""ered both logical and emotional reasons to buy a Cadbury product as a "irst option on e!ery occasion. A&"1 ti!i#' Dil1mma! /ince di""erent chocolate-based products appeal to di""erent age groups, Cadbury needs to o""er a wide product range. =ach product needs promotion, which implies an ad!ertising budget "or each product line, which is !ery expensi!e. Products, which are di""erent "rom each other, create an ad!ertising problem. 2or example, a success"ul ad!ertisement "or Ra "inger o" "udgeR may boost sales o" CadburyRs 2udge, but is unli ely to li"t sales o" CadburyRs Curly 0urly. 3ne approach is to promote the "irm as a whole, that is, raise awareness o" CadburyRs, in the hope that this in itsel" will boost sales across CadburyRs product range. <owe!er, li e a pantomime castRs attempts to throw CadburyRs products to its audiences, a catch-all approach can be rather hit or miss and may produce a poor return. #nother way around this is to promote chocolate consumption in general. &his approach would re+uire co-operation between competiti!e producers and implies some loss o" control "or CadburyRs. 3btaining good returns "rom ad!ertising has been made harder by the "ragmentation o" tele!ision audiences. 0hen only one HK tele!ision channel showed ad!ertisements, ad!ertisers new that their e""orts would be seen by a huge audience and might well become a tal ing point nationwide. (owadays a "irm nows that to
6$

reach a high proportion o" potential customers it will need to place its ad!ertisement with se!eral &C channels. &his is expensi!e. In line with its adding-!alue approach, the challenge to Cadbury promote more than one product at once but without the large "inancial outlay normally associated with such a !entureY # team was put together and was as ed to produce a con!incing proposal. C$#!t u6ti"1 thi#2i#' 2rom within Cadbury came an interesting, attracti!e proposal based on some solid propositions8

2or children, consumption is lin ed to ha!ing "un. #ny consumption that children regard as "un will also appeal to their parents, who do the spending.

3ther companies manage to associate consumption with children ha!ing "un. 2or example, Disney o""ers Disneyland, where, in the course o" ha!ing a good time, children meet lo!eable characters whom they lin with the purchases that parents ma e on their behal", such as cinema tic ets, !ideos, cuddly toys.

.ood ideas may be trans"erable. 2or con"ectionery consumption to be !iewed not merely as pleasurable but also "un, the companyRs products need to ta e on some characteristics o" the entertainment industry.

&he company has Ra place where chocolate is madeR - Cadbury 0orld - that is a huge attraction to thousands o" !isitors each year. It is an asset that can be "urther de!eloped. 3ut o" this line o" thin ing came a new Cadbury creation8 Cadbury '#(D.

70

71

CHAPTER)E METHODO.OGY
RESEARCH DESIGN *ar eting Gesearch is a process o" collecting and analy)ing mar eting in"ormation and ultimately to arri!e at certain conclusion. &he purpose o" this research is to describe the research procedure. Gesearch *ethodology is the mean to plan out the wor ing process or the course o" action to reach the obIecti!e. It is extremely crucial and holds the ey to the success o" the sur!ey. Cadbury India ltd. is, which is mar eting products ha!ing di""erent brands. &hus a sur!ey method o" mar eting research is essentially exploratory in nature. *ar eting research ha!e its importance not only "or consumers mar et but also it sur!ey e""ecti!ely to the producer o" goods and ser!ices. &he use o" mar eting research in consumer mar et may be explained on the basis o" "ollowing ser!ices rendered by it. 1. It ascertains the position o" a company in speci"ied Industry. -. It indicates the present, "uture trend o" Industry and point out how the company%s a""airs are being turned up. 6. It helps in de!elopment and introduction o" new product.

DATA CO..ECTION SOURCES


Data collection is most important part o" research because the research is based on it. &here are se!eral ways o" collecting data, which di""ers considerably in terms o" cost, time and other resources at the disposal o" the researchers. &he data collection method "or this research wor is "rom primary source as well as secondary. &he sur!ey is carried out through a non-probability con!enience sampling in Delhi through a structured +uestionnaire.

7-

T%p1 $9 Data &here are two types o" Data8 1A Primary -A /econdary P ima % S$u 61: /ource "rom where "irst hand in"ormation gathered directly are called primary source and thus in"ormation collected is called Primary data. In case o" abo!e study the primary source was consumer. &he techni+ues a!ailable "or collecting primary data are8

SAMP.E SIHE
&he sur!ey is conducted among B0 respondents.

SUR+EY AREA
I ha!e done the sur!ey in Delhi region S16$#&a % S$u 61: &he source o" in"ormation already gathered "or some other purpose are a!ailable is called secondary data, with regard to my study secondary sources o" my study where records o" the company, maga)ines and papers. &he /econdary data was collected on the basis o" re+uirement, con!eniences and reliability o" the data. 3ut o" these I ha!e chosen +uestionnaire method to collect the data because o" low cost, "ree "rom the bias o" other inter!iewer and respondent

76

CHAPTER); DATA ANA.YSIS Q.1 Which is favorite chocolate brand?

Ca&bu % Amul N1!tl1 S#i621 ! Oth1

9IJ KJ EJ KJ EJ

=8 - D$ %$u li21 Ca&bu % Ch$6$lat1! a! 6$mpa 1& t$ $th1 b a#&!L


O2a% O2a%: -:J N$t mu6h: ** J +1 % mu6h: I9J N$t at all: -J
LIKE AND DISLIKE OF CHOCOLATES

11%

2%

Very much Okay Okay 28% 59% Not much Not at all

77

In the sur!ey it was "ound that about 605 respondents li ed Cadbury chocolates !ery much, -85 "ound them o ay types, about 105 dint li e them much, whereas -5 o" the group dint li e the chocolates. /ince most o" them are "ond o" Cadbury chocolates, it is a reason "or Cadbury to reIoice.

=8 E

H$( ma#% tim1! &$ %$u bu% 6a&bu % 6h$6$lat1!L

O#61 1"1 % &a%: EEJ -)E tim1! a (112: EKJ O#61 a (112: *-J Sp16ial $66a!i$#!: -IJ

BUYING PATTERN

!ecial occasions 25% Once a week 12%

Once every day 33%

Once every day 2-3 times a week Once a week !ecial occasions

2-3 times a week 30%

&he consumer buying pattern is !ery important "or a company to decide on the distribution strategy , other related strategies to position its product. Cadbury should "ocus on increasing its distribution outlets.

7B

Q. 4 Which is your favourite Cadbury Chocolate?

Dairy *il ;ourn!ille Per B /tar Dairy *il /il 3ther

685 175 05 165 6-5 05

=8 I

/hat a 1 th1 t$p att ibut1! (hi6h 6$#!um1

thi#2! (hil1 ma2i#'

&16i!i$#L

76

PREFERENCES

'acka&in& 20%

"aste 28%

"aste #rand %n&redients

%n&redients 25%

#rand 2$%

'acka&in&

-85 respondents said taste was the most important "actor o" selection -45 respondents said brand was the most important "actor o" selection -B5 respondents said ingredientsP "la!ors was the most important "actor o" selection -05 respondents said pac aging was the most important "actor o" select

=8?

/hat &$ th1 6$#!um1 ! thi#2 ab$ut th1 ta!t1 $9 "a i$u! 6h$6$lat1

p $&u6t!< i# 6$mpa i!$# (ith 6a&bu %L

74

CUSTOMER SATISFACTION WITH REGARD TO TASTE


O"1., 12% )0+/ 10% N. "/. 23% ()*#+,53% ()*#+,N. "/. )0+/ O"1.,

&aste plays a !ery important role in deciding how satis"ied the consumer is. It is an important ingredient o" product di""erentiation. *ore than B05 people were satis"ied by cadbury%s taste

Q.7Do you believe chocolates is commodity consumed by only children n youngsters ?

78

yes (o

? E -

165 875

7$

Q.8 Do you find Cadbury advertisement effective ?

Geally catchy a!erage (o impact

465 --5 65

=8 9 /$ul& %$u p 191 t$ !(it6h t$ a#$th1 b a#& i9 it i! 6h1ap1 L


Xes8 B65 (o8 765 Indi""erent8 75

PRICE SENSITIVITY OF CONSUMERS

%ndi33erent 2% -es 53%

No 23%

No -es %ndi33erent

M$!t $9 th1 1!p$#&1#t! (1 1 p i61 !1#!iti"18

B0

B1

=8 *K A#% ' i1"a#61 (ith Ca&bu % i# pa ti6ula L

NO. OF GRIEVIANCES BEFORE THE COMPANY


NO" (.,")%N -. 5% 8%

-. NO NO" (.,")%N

NO 8$%

M$!t $9 th1 6u!t$m1 ! ha& #$ ' i1"a#61!8

B-

DATA INTERPRETATION
In the sur!ey it was "ound that about $05 respondents li ed Cadbury chocolates !ery much, -85 "ound them o ay types, about 105 dint li e them much, whereas -5 o" the group dint li e the chocolates. /ince most o" them are "ond o" Cadbury chocolates, it is a reason "or Cadbury to reIoice. &he consumer buying pattern is !ery important "or a company to decide on the distribution strategy , other related strategies to position its product. Cadbury should "ocus on increasing its distribution outlets. It is !ery important to determine the mar ets where the sales are maximum, in order to ma e a suitable distribution channel. It was seen that most o" the sales were made through the irana shops and the rest through supermar ets , both. It was seen that most o" the respondents @more than B05A pre"erred cadbury%s o!er the other brands li e nestle and other "oreign brands. It shows that Cadbury is the undisputed mar et leader in terms o" both sales and brand perception. Price is an important determinant o" how the product , brand are going to be percei!ed. In terms o" the price, Cadbury is pre"erred. 805 o" people thought that Cadbury o""ered reasonable products and only -05 thought the products to be expensi!e. &aste plays a !ery important role in deciding how satis"ied the consumer is. It is an important ingredient o" product di""erentiation. *ore than B05 people were satis"ied by cadbury%s taste. #n ad!ertisement plays a !ery crucial role in increasing the sales o" chocolates which is clearly seen in the abo!e graph Cadbury enIoys a lot o" bene"it "rom ad!ertisements. /ales are normally higher during 2esti!als. /pecial occasions li e Calentines Day, 2riendship day.

B6

MARKETING STRATEGY
&he mar et strategy o" the "irm is a complete and unbeatable plan or an instrument designed specially "or attaining the mar eting obIecti!e o" the company. "ormulation o" the mar eting strategy consists o" two steps8 1. S1'm1#tati$# G Ta '1t Ma 21t S1l16ti$#8 -. A!!1mbli#' th1 ma 21ti#' mi@8 Ma 21t !1'm1#tati$# a#& Ta '1t Ma 21t S1l16ti$# *ar et segmentation and target mar et selection has a intimate relationship with mar et strategy "ormulation. &he company "ocuses on the "ollowing "actors while laying down the target mar et. 1. GEOGRAPHICA. SEGMENTATION8 #. .eographically the country can be di!ed into three sub segmentsE Gural, /ub Hrban and Hrban. In the "irst phase urban parts o" the country is targeted. 'ac o" in"rastructure, li e re"rigeration-not to !enture rural mar ets. /emi-Hrban8 It may be considered in the second phase. 0ithin URBAN INDIA< the cities with 1 millionZpopulation are targeted. &his will be underta en in ;ombay, since it is a high consumption city "or chocolates. &he

-8 D1m$' aphi6 S1'm1#tati$#8


AGE: 1- yearsZsegment o" the population is targeted.

,AMI.Y .I,E CYC.E:

B7

1. 1.XoungP/ingle or *arried @withPwithout idsA -. *atriculate and college goers. 6. *arried with no children under 18. 7. *arried old couplesPold single. B. =mpty nest couples[. &he brand may position such that it "its all stages o" "amily li"e cycle. INCOME: &his segmentation may be o" households whose annual income exceeds G/. 1 'a hs. E8 Ph%6h$' aphi6 S1'm1#tati$#:

SOCIA. C.ASS: In terms o" psychograph the social class targeted is the educated upwardly mobile middle and upper class. P1 !$#alit% T ait!: &his segment consists o" "rea y, "un lo!ing type o" people who li e to enIoy li"e and belie!e in tra!eling and ad!enture. .i91 St%l1: It may be aimed at those who "a!or buying con!enience products. &hey are also willing to experiment with alternate products. ;8 B1ha"i$ual S1'm1#tati$#:

&his segment comprises o" people who li e to ha!e chances and want to try new things. .1a #i#') I#"$l"1m1#t: &his purchase o" a chocolate is a low-in!ol!ement category. It is an impulse purchase and decision to buy is not pre-planned.

BB

CURRENT SEGMENT TARGETING AND POSITIONING TARGET:


C*D8 Its target is almost e+ually !ast as its segments i.e. ranging "rom ids and youngster to adult willing to go on in "or traditional rich and sweet chocolates.

POSITIONING:
C*D8 wanted to position the product as real taste o" li"e. 0anted to mo!e chocolate "rom the realms o" pure indulgence "or e!eryone. It tries to position itsel" as a stimulant "or those who want to "ind the 1real taste o" li"e% through its ad!ertisement by depicting emotional association in synchroni)ation with the product experience.

CMD A'1 ' $up i# %1a !


8-17 1B--0 -0--B -B and abo!e -B\5 615 -75 -05

POSITINING:

&he positioning o" the !arious brands in the mar et has been listed belowE

B6

CADBURY3S BRAND Cadbury%s dairy mil 2ruits and nuts Creamy bar Goast almond (uts mil Crac le ;ourn!ita 2rutus ;ourn!ille /il

P3/I&I3(I(.

NEST.E3 BRAND

P3/I&I3(I(.

9&he real taste o" Classic li"e: Positioned as adult as on impulse anytime purchase. - /el" expression !alue attached chocolate

mil

Positioned as an o""er enriched chocolate double mil

B starPper

Per positioned as Kit at snac ing consumption 9&hori pooIa:. se pet ;arone *unch Classic

Positioned snac ing

as

consumption. 9<a!e ha!e a 9positioned trendy anytime snac a brea , it at as cool

B star energy bar Chocostic reach "or the stars *il ybar

B4

CADBURY BRAND .emsP]clairs

P3/I&I3(I(.

NEST.E BRAND

P3/I&I3(I(.

Positioned !ariety, and pre"erence.

as gi"ting taste

;utterscotch caramelsP o!ertunes sil relish. nuttiesPall

CHAPTER)I ,INDINGS AND THEIR IMP.ICATIONS


B8

S8/8O8T8 ANA.YSIS O, THE ORGANIHATION


STRENGTHS: &he chocolate industry is not a""ected by any slump o" recession in business acti!ity. Chocolate are such inds o" product, which can be consumed anytime. Children, teen, adults anytime one can ha!e it Cadbury is the most popular brand in India. Cadbury is enIoying maximum mar et share in the Indian mar et. &aste o" Cadbury is better than other brands. #d!ertising o" Cadbury is more aggressi!e than other brands. Inclination o" new generation is towards Cadbury more than other brands because o" celebrity endorsing. 0riting style o" Cadbury is more attracti!e.

/EAKNESS: Perishable in nature. 0ith regard to price 0ith regard to price8 Proper storage re+uired. *any competitor, so extensi!e sales promotion techni+ue re+uired. Cultural barriers. OPPORTUNITIES: &he chocolate industry is a sunrise, one yet to see its saturation le!el. &he !ariety o""ered in terms o" chocolate type and e!ens pac aging and probably at some later stage in terms o" brands, ma es chocolates a lucrati!e o""er "or the consumers at large. &he mar et growth rate is !ery high. &he punch line o" Cadbury is at the top o" mind among customer.
B$

'arge middle class "amily.

THREATS: &he existing player in the industry may "eel threatened by entry o" prospecti!e competitors, by the *(C%s or big Indian players. 3ne o" the maIor problems that are "aced by the chocolate industry is the high price o" cocoa. <ealth problems especially teeth. 'ocal players. <igh cocoa prices.

60

SIGNI,ICANCE O, THE STUDY


2or any business !enture, human resource go hand in hand. 3pportunities come and go but business comes "rom the ones, which are handled properly in terms o" leads. 'eads "or any new opportunity are !ery important "or it to turn out a pro"itable !enture. Promotion plays a !ery important role in both the departments. Promotion helps us to mar et a product properly and also helps in increasing the sale o" the product as compared to competitors.

MANAGERIA. USE,U.NESS O, THE STUDY


<elps to ha!e human resource experience <elps to deal with di""erent customers <elps to o!ercome the obIections o" the customers <elps to understand the problems o" agents in a broader prospect It pro!ides a plat"orm where managerial role can be played e""ecti!ely and e""iciently

61

CHAPTER)? .IMITATIONS O, THE STUDY


;ecause o" time constraint sample si)e was the scope o" this proIect is limited to areas o" (ew Delhi only. &he estimates are done on a!erage basis. &he proIect had scope "or "uture research, which was beyond my resource due to time constraint and wor pressure. ;ecause o" time constraint sample si)e was restricted on B0. /ome o" the respondents did not respond due to lac o" time. /ome were biased towards their brand, which might not be gi!ing them good ser!ice. /ome times e!en i" the retailers were not using Cadbury but he used to say that the brand he is using is Pepsi because o" low awareness le!el o" other brands.

.IMITATIONS O, THE ORGANIHATION

1. &he company plans its raw material re+uirement "rom the sales proIection, which was done by the mar eting department o" the company. #t the end o" e!ery month, mar eting department creates its budgeted sales "or the existing product and new products. *ar eting department creates its budgeted sales by considering demand o" the product, actual sales in the pre!ious month and the sales in the current month o" the pre!ious year. -. Production, Planning and *aterial Control Department @PP*CA is based on the sales proIection and calculates the re+uirement o" the raw material "or each department "or each product. PP*C department authenticates raw material issued.

6-

6. #"ter the PP*C Department calculates the re+uirement o" the raw materials, the purchasing department places an order to the !endor or supplier "or each department. &hen the supplier dispatches the material in the "actory premises. 7. Company is "ollowing batch production process. &hey assign the batch number and lot number so that i" any problem occurs while it is consumed they can detect the "ault.

66

COMPETITOR IN,ORMATION
Indian chocolate has three maIor mar et players Cadbury India '&D. dominating the mar et by capturing 415 o" the mar ets share, "ollowed by (estle ha!ing -65 o" mar ets share, #mul ha!ing a niche mar et o" 75 and remaining 15 was other mar ets. Cadbury India ltd "ace the tough competition "rom (estle howe!er when !iewed in light o" the historical growth rates in earnings, Cadbury India appears to posses a superior trac record. 3!er the past three years to -000, Cadbury India has de"initely outpaced (estle India, both in pro"it and sales growth. /ince 1$$8, Cadbury India has managed a compounded annual sales growth o" around 18 per cent and an impressi!e pro"it growth o" around 70 per cent. In contrast, (estle IndiaRs sales ha!e grown at a sedate 7 per cent while pro"its ha!e grown at around 18 per cent. (estle IndiaRs sedate growth is partly to the cyclically o" its co""ee business. I" one goes entirely by the trac record o" the past three years, Cadbury would deser!e a better share than (estle. <owe!er, the +uestion is one o" whether Cadbury will be in a position to sustain its impressi!e growth rates o" past three years.

67

CHAPTER F > RECOMMENDATIONS AND SUGGESTIONS


RECOMMENDATIONS:) 1. Chocolate should be a!ailable e!erywhere. -. &hey should introduce calorie "ree or low calorie chocolate. 6. &hey should pro!ide pac s o" all si)es so that it can be a""orded by anyone. 7. &he chocolate should ha!e attracti!e pac aging. B. &he chocolate should be energi)ing and healthy to eat. 6. Pro!ide di""erent taste o" chocolates. 4. In"orm about the ingredients on bac o" all pac s. &hey should ma e absolutely !egetarian chocolates. 8. Price should be ept low e!en when the chocolate is success"ul. $. It should be able to replace snac i" consumed i.e. hea!y when eaten.

Su''1!ti$#! 9$ A&"1 ti!i#'


CD* is undeniably the leader brand o" not only the Cadbury%s bas et but also the chocolate segment as a whole and is in a sense almost generic to the category in the country. CD* must there"ore through its media posture be the brand champion and carry the brand message. 0ith hal" the ad!ertising spends o" Cadbury%s, CD* must build on the brand e+uity through a premium mar eting strategy that re"lects in the media communication and positioning as well. &his would translate to large and continuous brand presence. &ele!ision is the ad!ised primary medium o" communication as it has mass reach, a "a!orable image, high prestige !alue and is attention getting while ha!ing low cost per exposure "or a high absolute spend. &he media will go hand-in-hand with the ad!ertising in reaching the expanding target audience the brand is reaching out to. <erein, the media must also supplement the youth"ul exuberance and rebelliousness o" the ad!ertising communication. Caution should be maintained not to dent brand e+uity while increasing penetration in smaller towns by using locally targeted media channels in a manner that will allow capitali)ation o" the 1premium nesses o" the brand.

6B

CHAPTER): CONC.USION
&he chocolate con"ectionery mar et elicits conscious and unconscious "eelings o" passion, loyalty and enthusiasm. #lmost 805 o" chocolate purchases are made on impulse. ;uyers generally decide +uic ly which con"ectionery product to buy with almost hal" o" purchase decisions made within 10 seconds o" arri!ing at the con"ectionery "ixture in the store. ;rands play an important role in the chocolate con"ectionery industry. # brand is a name, mar , or "eature, which distinguishes one product "rom another. # good brand e""ecti!ely guarantees that it will deli!er all o" the +ualities that the consumer associates with it. 2or many people, chocolate is Cadbury, and no other brand will do. &his consumer loyalty is critical because o" the !alue o" the chocolate con"ectionery mar et and because, in all mar ets, a small number o" consumers account "or a large proportion o" sales. 'oyal customers are the most !aluable customers to ha!e because they will buy your product o!er and o!er again. Gesearch data shows that the Cadbury brand e+uity is highly di""erentiated "rom other brands with consumers. ;rand e+uity is the !alue consumer loyalty brings to a brand, and re"lects the li elihood that a consumer will repeat purchase. &his is a maIor source o" competiti!e ad!antage. &he Cadbury umbrella brand has endured in a highly competiti!e mar et, and has established the lin , in the mind o" the consumer, that Cadbury e+uals chocolate. &he Cadbury brand is associated with best tasting chocolate. *ar eting managers at Cadbury are wor ing to ensure this association is continually de!eloped through their RChoose CadburyR mar eting strategy. Key concepts o" +uality, taste and emotion underpin the Cadbury brand. &hese core !alues help to di""erentiate Cadbury "rom other brands and ensure its competiti!e ad!antage.

66

,INDINGS
&he Cadbury brand has pro!en itsel" to be a leader in a highly !olatile and competiti!e mar et because it has success"ully established, nurtured and de!eloped its umbrella brand and growing port"olio o" products. Perhaps !ery "ew product categories in India ha!e seen as much excitement generation, widening o" appeal and repositioning as chocolates. Cadbury IndiaRs> has been success"ul in re!amping its brand port"olio and its repositioning e""orts. It has rein!ented and re!amped its brand port"olio, strengthened its distribution networ and relied hea!ily on promotions and ad!ertising - while launching and relaunching brands. Cadbury%s strategy to attract consumers is somewhat uni+ue in a sense, instead o" "ocusing on the product? it see s to tap into emotions normally associated with chocolates. &hey ha!e also adapted their strategies to the uni+ue demands o" the Indian retail sector. &he strategy has clearly pro!ed success"ul, as they ha!e been able to build and maintain a leadership position in the mar et with many loyal customers.

Cadbury introduced a new global mar eting strategy called RChoose CadburyR. &his strategy came about as a result o" extensi!e research into consumer beha!iors and perception. It is a campaign that per"ectly illustrates how a brand can e!ol!e and how di""erent messages can be communicated without losing the core strength and brand !alues that are already established

(ew product de!elopment has played a ey role in de!eloping mar ets as brands stri!e to o""er something to a consumer that is truly di""erent &he Cadbury product range addresses the needs o" each and e!ery consumer, "rom childhood to maturity, "rom impulse purchase to "amily treats. 2or example an analysis o" the Rgi"tR sector highlights the importance o" de!eloping inno!ati!e products to address speci"ic mar ets. Cadbury designs products to coincide with Diwali, ra shabandhan, , *otherRs and 2atherRs Day.

64

&he chocolate con"ectionery mar et is "ull o" brands that need to "ight "or our attention. &he role o" ad!ertising is to eep a brand in the mind o" the consumer. 0e are constantly presented with countless brand images and messages on a daily basis. During the li"etime o" a brand, companies will de!elop mar eting strategies that communicate brand identity and core !alues to gain our attention. In order to eep its product competiti!e and contemporary, these messages need to change o!er time.

Cadbury pro!ides one o" the most success"ul examples o" how an ad!ertising message can be modi"ied "rom one campaign to the next to attribute new !alues to a brand gi!ing consumers more reasons to buy Cadburys. Cadbury employs all types o" ad!ertising "rom the internet to posters, "rom &C, radio and cinema to print media. &his same creati!e message is then communicated through point o" sale, merchandising, pac age design and public relations.

;esides ad!ertising and sales promotion, brand perception by consumers gets a""ected by se!eral other "actors li e pac aging, distribution e""iciency, a"tersale ser!ice @where applicableA, speed o" response to customer complaints. /hopping experience and deli!ery o" the !alue proposition are also among the contributing "actors. Cadbury India has also wor ed , is still wor ing on these "actors to success"ully position its brand as the topmost brand o" chocolate.

Cadbury India expects strong growth in India in "uture. &he company plans to increase the "ranchise o" its existing brands and continue to explore new product opportunities including adIacent mar et opportunities. Cadbury India is also loo ing "or more opportunities in the /##GC region.

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BIB.IOGRAPHY
B$$2!
1. ;elch.=..eorge and ;elch. #. *ichael, 9#d!ertising and Promotion 9/ixth =dition 7,-001, page no--68, &ata *c.raw <ill. -. Kotler Philip,: *ar eting management 9=le!enth =dition, India, page no-184 Pearson =ducation.

6. (eelamegham /, *ar eting in India @cases , readingsA, =dition - ,1$$$ page no-66B 7. (argund ar GaIendra, Panda &apan, *ar eting strategies "or emerging mar ets,6rd edition, page no-167 B. Cerma <arsh ;rand management@ text , cases A =dition 7,-006,page no-6B

Ma'aMi#1!
/uper brands India business world maga)ines,"eb -010 issue no-x!iii ,page no-6$

/1b!it1

1. http8PPwww.cadburyindia.comPcadbury^home -. http8PPwww.indiain"oline.comPcadbury.report 6. http8PPwww.nestle.co.inPper 7. http8PPwww.business-000.comPannualreport^cadbury.htm B. http8PPwww.brandwee .comPcadbury^Bstar 6. www.wi ipedia.com

6$

ANNENURES
=u1!ti$##ai 1
MARKET SUR+EY ,OR CHOCO.ATES =UESTIONNAIRE ,OR CONSUMERS (ame 8 .ender8 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ^^^^^^^^^^^^^

Cadbury
Which is fav !i"# ch c $a"# %!a&'( (ad4ury )mul Nestle nickers Other5

Wha" a!# "h# " ) a""!i%*"#s +hich , * $ "aste 'rice (alories #rand o3 the chocolate 'acka&in& %n&redients6 3lavors Other5 H + f"#& ' * c &s*/# ch c $a"# ( Once a week twice a week 5 times a week

- f ! +hi$# %*,i&. ch c $a"#(

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0ore than 5 times a week

Which is , *! Ca'%*!, Ch c $a"#( *airy 0ilk #ournville 'erk 5 tar *airy 0ilk ilk Other5 D , * fi&' Ca'%*!, #asi$, ava$ia%$# " )*!chas# ( -es No H + ' , * fi&' "h# 0*a$i", f Ca'%*!, ch c $a"# ( .7cellent 8ood )vera&e #ad Wi$$ , * s"i$$ )!#f#! Ca'%*!, if "h# )!ic#s a!# i&c!#as#' ( -es No D , * fi&' Ca'%*!, a'v#!"is#/#&" #ff#c"iv# ( ,eally catchy avera&e No im!act D , * %#$i#v# ch c $a"#s is c // 'i", c &s*/#' %, &$, chi$'!#& & , *&.s"#!s ( yes No

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