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A Dissertation Report On

“ANALYSIS OF CADBURY CHOCOLATE IN THE MARKET WITH ITS COMPETITORS”

Submitted By :-

NIKHIL KUMAR
MBA IV Sem. (2004-06) Enrollment No. …………………. Under the Guidance of :PROF. ASIF HALEEM

INSTITUTE OF TECHNOLOGY AND SCIENCE
MOHAN NAGAR, GHAZIABAD (U.P.)

TABLE OF CONTENT

          

ACKNOWLEDGEMENT EXECUTIVE SUMMARY INTRODUCTION OBJECTIVE OF RESEARCH RESEARCH METHODOLOGY ANALYSIS & OBSERVATION DATA ANALYSIS AND FINDINGS CONCLUSION RECOMMENDATIONS BIBLIOGRAPHY QUESTIONNAIRE

Declaration by the Candidate

I NIKHIL KUMAR student of MBA IV of Institute of Technology & Science (I.T.S), Ghaziabad (2004-06) bearing enrollment number _______________ hereby declare that the research project report titled “ANALYSIS OF CADBURY CHOCOLATE IN THE MARKET WITH ITS
COMPETITORS”

Is the outcome of my own work and same has not been submitted to any university/ institutions for the award of any degree or any professional diploma.

Date:

( Sign of candidate

)

ACKNOWLEDGEMENT

The successful completion of any work would be always be incomplete unless we mention the valuable cooperation and assistance of those people who were a source of constant guidance and encouragement , they served as bacon light and crowned our efforts with success. I would like to extend my sincere gratitude to our Prof. Asif Haleem for his guidance.

NIKHIL KUMAR

. Cadbury Schweppes today manufactures product in 60 countries and a trade in staggering 120. A detailed questionnaire had been prepared and the responses of the concerned people had been collected for the analysis. the confectionery and soft drink market Intec UK and becoming a major force in the international market. A descriptive research procedure had been applied to come to the conclusions of the project.PREFACE The Cadbury‟s India‟s number one chocolate is able to share with their market insights based upon unparallel breath of chocolate experience. This project is a sincere effort to look for the market potential in chocolate and confectionery industry. The project later concluded in recommending the market potential of the chocolate and confectioneries. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the led in both.

1 Chocolate is able to share with their market insights based upon unparalleled breath of chocolate experience.EXECUTIVE SUMMARY TITLE: ANALYSIS OF CADBURY CHOCOLATE IN THE MARKET WITH ITS COMPETITORS. Objective: To analyze the marketing strategies of the company with   To determine the market share of Cadbury . Rationale of study: The Cadbury‟s Inc has taken the opportunity to offer us a broader view of chocolate category.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 Cadbury‟s India‟s no.This report study about market share and different strategy with its competitors. To demonstrate the marketing strategies of Cadbury India Ltd.

2) This report shows the problems associated with the Cadbury industry in the market as it helps in removing these problems.Importance: 1) This report is useful for the researchers who are willing to do research on the Cadbury chocolate and its present competitors in the market. 3) This report can be useful as a secondary data for chocolate industry. 4) This report helps in knowing the current and future scenario of confectionary industry. Why a research study has been undertaken. Why a research study has been undertaken. how the research problem has been defined. in what way and why the hypothesis has been formulated. 5) This report helps in knowing market position of different confectionary industry. Research Methodology: The research conducted by Exploratory Research this type of research is Qualitative and Quantitative. Qualitative refers to the characters of the data or process by which the data are gathered. what data has been collected and what particular method has been adopted and a host of similar other question are usually answered when we talk of research methodology concerning a research problem or study. . The research process consists of a series of closely related activities.

A decision has to be taken concerning a sample unit before selecting the number of samples. Amul and others are take place. A questionnaire was prepared and interviewing with Retailers and Consumers.. Size of Sample: This refers the number of items (Outlets) to be selected from the finite universe to constitute a sample size.Sampling: The data was to be collected only from the Consumers and Retailers. Cadbury chocolate is very easily available in the market. 54% people are not aware from this brand while 46% are aware. Dairy milk and 5 star is most famous product of Cadbury. Analysis: The data was tabulated manually and was also analyzed manually excel was used to make graphs and pie chart. It may be geographical as well as individual. . Most of the people buy chocolate from superstore and after that from retail or movie mall.       26% of people are interested in eating chocolate and 74% are not eating. The Cadbury brand chocolate 75% of people prefer after that Nestle. The survey was conducted of 50 outlets.

over the next years.   Grow volume sales at least 20% p.  One new major product launch every year. child connectivity and value for money offering to be the key growth drives. Recommendations:  Maintain dominance in chocolate. and of great benefit to the company in furthering its competitive advantage.  New channels such as gifting. Achieve the goal of best manufacturing location in Cadbury Schweppes world for Dairy Milk and Éclairs.Conclusion: This company project has demonstrated “CADBURY‟S MARKETING AND COMPETITIVE STRATEGIES” that has proved to be extensive through. . In this project it possible to see the success of Cadbury‟s in its indorse its strong potential to continue to do well.a. confectionery and market leadership in blown drinks.

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A story that you will remember as the story of “The taste of life”. the confectionary and soft drink market Intec UK and becoming a major force in the international market. most loved chocolate brand in the world. Cadbury Schweppes today manufactures product in 60 countries and a trade in staggering 120. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the led in both. Cadbury has grown from strength to strength with new technologies being introduced to make the Cadbury confectionary business. The Cadbury story is a fascinating story of a family business that grew in one of the biggest. This project is a sincere effort to look for the market potential in chocolate and confectionery industry. A descriptive research procedure had been applied to come to the conclusions of the project. The Cadbury‟s India‟s no. The project later concluded in recommending the market potential of the chocolate and confectioneries .INTRODUCTION The Cadbury‟s Inc has taken the opportunity to offer us a broader view of chocolate category. A detailed questionnaire had been prepared and the responses of the concerned people had been collected for the analysis. one of the most efficient in the world.1 Chocolate is able to share with their market insights based upon unparalleled breath of chocolate experience.

Fortunately for generation of chocolate lovers. in Bull street Birmingham was to be the foundation of Cadbury Limited. 1861 – John Cadbury resigned his business and handed over to his sons. This was the start of Cadbury manufacturing business as it is known today. now one of the world‟s largest producer of chocolate. 1866 – Saw a turning point for the company with the introduction of a process for pressing the cocoa butter from the coca beans. This not only enabled Cadbury Brothers to produce pure coca essence. moving in 1879 to a „Greenfield‟ site some miles from the center of Birmingham which came to call Bourneville. therefore best‟. John Cadbury was joined by his brother Birmingham and the business became Cadbury Brother of Birmingham. 21 who after 5 difficult years almost shut down the business to take up other vocation. they didn‟t. The opening of the Cadbury factory in a garden also heralded a new era in industrial relations and employee welfare with . but the plentiful supply of coca butter remaining was also used to make new kind of eating chocolate. 1879 – Business prospered from this time and Cadbury Brother outgrew the Bridge Street factory. Richard. The essence was advertised as „Absolutely pure.The legend called Cadbury 1824 – A once business was opened in 1824 by a young Quaker. 1831 – By this year the business had changed from a grocery shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa. 25 and George. John Cadbury. A larger factory in Bridge Street Birmingham was rented in 1847.

Cadbury today is the market leader in the U. Quality has been the focus of the Cadbury business from the very beginning as generations have worked to produce chocolate with that very special taste. 1905 – Cadbury has many famous brands with one of major success story being Cadbury‟s Dairy Milk chocolate launched in 1905. so characteristics of Cadbury‟s chocolate. . smoothness and snap. World . The company is the confectionary division of Cadbury Schweppes plc which is major force in the confectionary and soft drinks international market. employing the most advanced processing technology and management information and control techniques.K chocolate confectionary market. Progress since the start of the century through the inter – war years onward ahs been rapid. 1899 – In this year the business private limited company – Cadbury Brothers Limited. today Britain‟s favorite moduled chocolate bar.joint consultation being just one of the introduced by the pioneering Cadbury Brothers.wide Cadbury is one of the pre – eminent names in confectionary with impressive range of famous brands. Chocolate has moved being a “luxury” item to well within the financial reach of everyone.

Led by George Cadbury junior. who were renowned for their milk chocolate. . the Bourneville experts set out to meet the challenge. By 1913 it had become the company‟s best selling line and in the mid twenties Cadbury‟s Dairy Milk gained its status as the brand leader. A new recipe was formulated fresh milk and new production processes were developed to produce milk – chocolate not as merely as good as but better than the imported milk chocolate. Four years of hard work were invested in the project and in 1905 what was to be Cadbury‟s top selling brand was launched.K from continental manufactures.Design Development Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to the dark chocolate recipe of cocoa mass. A considerable amount of time and money was spent on research and new plant design to produce the new chocolate in much large quantities. not only the French with their fancy chocolates but also from the Swiss. cocoa butter and sugar. Today more than 250 million bars of Cadbury‟s Dairy Milk are made every year and sales reach over 100 million Pound in value. At that time there was a great deal of competition in the U. a position that it has held ever since. Three names were considered Jersey Highland Milk and Dairy Maid. Dairy Maid became Dairy Milk and Cadbury‟s Dairy Milk with its unique flavor and smooth creamy texture was ready to challenge the Swiss domination of the milk chocolate market. By today‟s standards this chocolate was not particularly good as it was very coarse and dry and was not sweet or milky enough for public tastes.

which have grown over the years. The half pound deep – lidded box with the traditional purple background and gold script was introduced in 1916. Originally Milk Tray was packed in five and as half pound boxes. arranged on trays from which it was sold loose o customers. By today‟s standards the first chocolate for eating would have been considered quite unpalatable. followed by one pound box in 1924. the recipe for Cadbury‟s Dairy Milk its „glass and a half of full cream milk in every half pound produced‟ is still basically the same as when it was launched. Good chocolatiers is an art form depending on recipe traditions. It was the introduction of the Van Houten cocoa press from Holland that was the major break through in the chocolate production as it provided extra cocoa butter needed to make a smooth glossy chocolate. Cadbury’s Dairy Milk Story Chocolate has been enjoyed by successive generation since the manufacturing process was developed in the Victorian Times. . Chocolatiers have use their skills to make balanced recipe in which all the ingredients combine to produced chocolate with all the characteristics that enable full delicious taste to be enjoyed by the consumers. Cadbury’s Milk Tray – 1915 Milk Tray has maintained its popularity in the changing world since the milk chocolate assortment made with the famous Cadbury‟s Dairy Milk chocolate was first introduced in 1915. The name „tray‟ derived from the way in which the original assortment was delivered to the shops.While advertising and label design g-have changed with fashion and considerable strides have been made in manufacturing technologies.

. without frills presentation Milk Tray was the assortment for everyday. The pack design has been regularly updated and the assortment itself has changed in line with consumers taste and preferences.With its stylish. not just special occasion and it represented the best buy in the chocolate for millions of people. By the end mid – thirties the Cadbury‟s Milk Tray assortment outsold all its competitions and today it is still one of the most popular boxes of chocolates in this country.

PRODUCT PROFILE CHOCOLATE & CONFECTIONARY Dairy Milk Fruit & Nut Picnic Perk Gems Éclairs Nutties Temptation .

FOOD DRINKS Ovaltine Drinking chocolate Bournvita Horlicks .

. domestic international Tolerance. 30.It is aimed at the niche “international chocolate “ segment of the chocolate market a segment how upgrade from brands such as Cadbury‟s offering Lindit 5%of the and total to premium such as Hersheys. it combines both fun good and health. Temptation is an attempt to lug niche. Roughly consumption expected to grow to some 10%. excitement. The product benefits have been defined as “The goodness of milk to the fun of chocolate”. The Previous Cadbury‟s range available in India did not offer consumer to an option to upgrade international chocolate within the Cadbury‟s fold. This segment is too good to miss out on. associate multinational The kinds value of milk along with the values of formally with Cadbury chocolate offering. Temptation :.Cadbury’s Fruit & Nut New Launch Cadbury target kids with Milk Treat: .It is a product that talks directly to the target consumer. priced Rs.

to create the highest quality chocolate.K. John Cadbury founded U. company with one aim:. and Australia that‟s why Cadbury have been dubbed “The world‟s master chocolate makers”. Right from the stand Cadbury Dairy Milk Chocolate success has been based on 4 factors: Quality  Value for money  Advertising Amul Chocolates . Cadbury brands were already famous all around world. These are the ingredients in Cadbury‟s latest recipes for success. The right product. By1969. the right partners. the promotional back up and the right employees. The secret of Cadbury’s success What is the secret of Cadbury‟s continuing success first there‟s the careful selection of the finest coca beans from west Africa. Schweppes.The Cadbury Story Cadbury’s success story In 1984. when Cadbury merged with the soft drink giant.Finally there‟s skillful marketing Cadbury always takes extreme care in selecting and marketing the right range of product in every cause. the right marketing. Cadbury dominated markets as far as the U. Today Cadbury‟s production are enjoyed in 120 countries.K. as well as tasty hazel nuts from Turkey and the fine sheet and choicest natural ingredient available to us anywhere. with 40 chocolate confectionary brands.

. Cocoa Butter. Milk Solids. Chocolate mass Composition:       Milk Fat 2% Sugar 55% Total Fat 32.5% Milk Solids 20% Product Specification: Meets all requirements under the PFA for boiled sugar confectionary. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.33% (Milk Fat + Cocoa Fat) Cocoa Solids 7. Gujarat Cooperative Milk Marketing Federation GCMMF: An Overview Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organisation.AMUL CHOCOLATE is made from Sugar.

of Producer Members: No.333 6.9 million litres per day 1.97 million litres 511 metric Tons per day 2340 Mts per day Sales Turnover 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Rs (million) 11140 13790 15540 18840 22192 22185 22588 23365 27457 28941 US $ (in million) 355 400 450 455 493 493 500 500 575 616 .81 billion litres No. of Village Societies: Total Milk handling capacity: Milk collection (Total 2003-04): Milk collection (Daily Average 2003-04): Milk Drying Capacity: Cattlefeed manufacturing Capacity: 4.Members: 12 district cooperative milk producers' Union 2.36 million 11.

Baby Foods: Nutrition that suits the needs of your baby. Our consumers have come to trust in Nestlé‟s commitment to excellence and turn to Nestlé brands to maintain nutritional balance in a fast paced world. Dairy Products: From shelf-stable solutions to chilled dairy. Breakfast Cereals: Start your day out healthy with Nestlé BreakfastCereals. .Amul Brands Quality is the essential ingredient in all of our brands and the reason why millions of people choose Nestlé products every day.

Chocolate & Confectionery Delighting the senses with a range of tastes and textures. Beverages: Drink to a healthy. . Prepared Foods: Preparing well-balanced meals is a snap with Nestlé.Ice Cream: Discover the world of delicious Nestlé Ice Cream. Food Services: Providing food and beverage professionals with a wide range of solutions. active life with Nestlé beverages.

Petcare: Nutrition. .Bottled Water: Capturing nature in its purest form. health and wellness for your pet.

the stock has surged 77 per cent from its low of Rs 304 in May 2000 and now commands a valuation 39 times the expected earnings for 2000.NESTLE INDIA THE NESTLE India stock has been bubbling with activity in an otherwise listless equity market.8 per cent. the growth in sustainable net profits was . In reality. Sales growth in this period was 10. On a comeback trail The resumption of its coffee exports to Russia and a favourable input price environment pepped up Nestle India's net profit growth to 28 per cent in the first nine months of 2000. This is steep by FMCG standards.4 per cent. The recent surge in the stock is partly driven by the announcement by the parent. Nestle SA. Till date.8 per cent and export sales 13. that it would use the creeping acquisition route to mop up another five per cent in Nestle India through open-market purchases. But improving the stock's valuation can also be traced to good financial performance in a market starved of healthy earnings numbers. with domestic sales rising 9.

Unusually.higher than reported as the company took an additional one-time charge of Rs 14. Nestle will continue to look to its domestic product portfolio to sustain earnings growth. In recent times. led to a 38 per cent drop in export sales (and a 5 per cent drop in net sales) for Nestle India in 1999. apart from milk) to historic lows in 2000. While coffee prices are hovering close to their seven-year lows. With global agencies forecasting high carry-in stocks for the next season. cocoa prices recently bounced off their lowest levels in three decades. at around 8 per cent in 1999 and 9. Does this mean Nestle India will sustain its healthy earnings performance over the next couple of years? This will depend on its ability to revive sales growth in its domestic product categories. low input prices may have contributed considerably to margin expansion. The cessation of coffee exports to Russia due to the economic crisis there.8 per cent in the first nine months of 2000. Instant coffee exports to Russia resumed this year. as with other FMCG companies.4 per cent sales growth in the first nine months of 2000 is partly magnified by the low base of comparison. Greener pastures at home Nestle's 10. but the business remains poor because realisations have fallen in line with green coffee prices. In the . Nestle India's topline growth in the domestic market was unimpressive.70 crore in the first nine months of 2000 for provisions against contingencies. the soft input price advantage could be with Nestle for the time being. Continuing surpluses in global production have pushed both coffee and cocoa prices (the two key inputs for Nestle India. Since realisations in the export market are unlikely to look up in the next year.

and food products (Maggi noodles. chocolates/confectionery and malted beverages (Milo. While Unilever and Tata Coffee are significant threats in the coffee market. KitKat.coffee (Nescafe Select.domestic market. they appear likely to deliver steady. Cash cows slow down Of these. Sunrise). In chocolates and instant coffee. Nestum. Stretching existing businesses . soups). Munch. weaning foods for infants (Cerelac. Nestle's Kitkat has actually ceded market share to Cadbury's Perk in the past year. But as these are mature products. Everyday Dairy Whitener). Charge. and not scorching. Nestle India has traditionally derived its revenues from five product baskets -. the market leader Cadbury India has been a potent threat in the chocolate confectionery market. weaning foods and milk products are the cash cows. the growth prospects appear brighter. milk products (Milkmaid condensed milk and ready mixes. Coffeemate coffee creamer. Sales growth in these businesses was less than five per cent in 1999-2000. Polo). The market for specialised food products such as soups and noodles holds healthy growth potential. growth rates. but Nestle faces intense competition from the players with the dominant market shares. Unilever and Dabur are vying with a host of imported brands and regional players for a share of the pie. Lactogen). But the market is relatively small and players such as International Bestfoods. with dominant market shares in both businesses.

Considering that Nestle has reduced both coffee and chocolate prices over the past year and held other product prices. However. . the company has also announced forays into three new areas -. the inputs from the parent do not come free.47 crore).Over the past year. Incidentally. The foray into biscuits is through the joint venture Excelsia Foods. Nestle India paid its parent a Rs 53. Nestle has used the soft input prices to reduce prices of its coffee and chocolate brands.5-4 per cent of sales over the past three years. the revival in the 2000 third quarter domestic sales is heartening. But these moves will take time to pay off. so the contribution to Nestle's revenues may at best be in the form of dividends for now.liquid milk. Nestle reported an 18 per cent growth in domestic sales (export sales declined 8 per cent due to lower realisations). Frappe cold coffee and Nescafe Gold from the Swiss parent's portfolio to expand its milk products and beverages range. For the quarter ended September 2000. Products such as KitKat and Munch in low-unit price packs have been used to encourage trial and bolster flagging volumes. A plan to expand the network of Nescafe vending machines and establish coffee bars to encourage out-of-home consumption of coffee is also on the cards. bottled water and biscuits. It has drawn brands such as Coffeemate coffee creamer. Royalty payments accounted for 3. Nestle has devoted considerable attention to the expansion of its domestic businesses. this indicates volume growth of a higher order. Testing the waters Over the past year.69-crore royalty in 1999 (net profits for the year were Rs 98.

In the bottled water market. Nestle India has also shied away from the mass market for liquid milk in plastic pouches. will determine the success or failure of Nestle's bottled water foray. and instead restricted itself to ultra heat treated (UHT) milk in Tetrapacks. both these segments are quite crowded with feature listed and unlisted players which have considerable financial muscle. followed recently by its sparkling mineral water brand. Bisleri (of Parle Products). one of the largest bottled water brands. Going forward.Liquid milk and bottled water are businesses that hold immense growth potential. competition is only likely to increase. San Pellegrino (reputed to be sourced from the Swiss Alps). Nestle will be up against the formidable Amul. Pure Life. In the liquid milk segment. has had to contend with competition from scores of me-too brands. the mass market bottled water brand to be launched shortly. both products are for upmarket consumers.the internationally renowned Perrier. However. The product is priced at a substantial premium to the other local brands. is already on shop shelves). with Britannia planning to launch more bottled water brands from its foreign collaborator Danone's portfolio (Evian. . However. apart from Pepsi's Aquafina. the market leader. Coca-Cola's Kinley. Larger players can expand through higher penetration levels and at the expense of the unorganised segment. apart from a host of private dairies with established clientele. The premium pricing suggests that the products will remain niche products with relatively small target markets. Striving for niches Nestle India has already launched two bottled water brands in the domestic market -.

Investment outlook: Nestle's new product forays are into extremely competitive markets and investments in the new businesses are likely to be high over the next few years. the advantage of soft input prices. In the foods business at the global level. In this respect. Since the high growth rates of this are partly on account of the low base of last year.Groupe Danone and Unilever. in India Nestle is pitted against its key adversaries worldwide -. the growth rates are likely to reach more moderate levels next year. both companies are considerably smaller than Nestle SA. Nestle SA. The stock continues to be a good investment option for investors with a three-year horizon. there could be some downside to the stock in the nearterm. rather than size is likely to determine the success of Nestle India's new product forays in the next couple of years. But marketing prowess. will stand Nestle India in good stead. But since the recent uptrend is partly on account of factors unrelated to the fundamentals. . The royalty to the parent should ensure that Nestle India continues to enjoy ungrudging access to the parent's product portfolio. high cash flows available from the stable businesses (such as weaning cereals and coffee) and the financial might of the parent. In many respects.

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 To find out the market share of the different competitors in the chocolate industry.   To analyze the marketing strategy of the Cadbury India Ltd.OBJECTIVE OF THE PROJECT My main objective of the study on this project is to demonstrate the marketing strategies of Cadbury India Ltd. Following are the some of the main objective of my report are as under:  Comparative study of Cadbury chocolate in the market with its main competitors. To analyze the marketing strategies of the company with its competitor in the market. To study about the customer taste and preference in the confectionary item. . .  And also to find out the satisfaction level of customer about their product.

7) This report shows the problems associated with the Cadbury industry in the market as it helps in removing these problems. These are the following some importance of this research report as under: 6) This report is useful for the researchers who are willing to do research on the Cadbury chocolate and its present competitors in the market. 9) This report helps in knowing the current and future scenario of confectionary industry. 10) This report helps in knowing market position of different industry.IMPORTANCE OF THE STUDY This report gives the help to the marketers for analyzing the different competitors in the chocolate industry.. 8) This report can be useful as a secondary data for chocolate industry. confectionary .

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RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding the subject. As the prime objective of the project is to compare Cadbury with the existing competitors in the market and the impact of Nestle on Cadbury, the research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed. Primary data was collected using the following techniques Questionnaire Method Direct Interview Method and Observation Method The main tool used was, the questionnaire method. Further direct interview method, where a face to face formal interview was taken. Lastly observation method has been continuous with the

questionnaire method, as one continuously observes the surrounding environment he works in.

Procedure of research methodology # Target geographic area was Delhi. NCR. # To this geographical area questionnaire was given, the

questionnaire was a combination of both open ended and closed ended questions. # The date during which questionnaires were filled was between six week. # Some dealers were also interviewed to know their prospective. Interviews with the honour of retailer of Cadbury were also conducted. # Finally the collected data and information was analysed and compiled to arrive at the conclusion and recommendations given. Sources of secondary data Used to obtain information on, Cadbury and its competitor history, current issues, policies, procedures etc, wherever required. # Internet # Magazines # Newspaper

ORGANIZATIONAL STRUCTURE

MANAGING DIRECTOR

GENERAL MANAGER

VICE PRESIDENT

MARKET ING

MANUFACT URING

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FINANCE

DISTRIBUTI ON

Cadbury Schweppes
Cadbury Schweppes plc, a global beverage and confectionary giant with annual sale of Rs 20,000 crores,is the worlds number one non – cola soft drink company having bottling and partnership operations in 14 countries and franchises of its brand in a further 86 countries around the world. Its Hundred Percent subsidiary in India named Cadbury Schweppes Beverage India (private) Limited (CSBIL) started operation in March 1995. The first brand was launched was crush which was later followed by Canada Dry, Schweppes Tonic Water, Schweppes Bitter Lemon. CSBIL with its franchise agreement with 19 bottles throughout India proposes to be a household name. It has a policy for FOBOs (Franchise owned bottling operations unlike Coke and Pepsi which prefer COBO,s (Company owned bottling operations). In FOBO the beverages company only supplies the concentrate and the marketing support to build brand equity. The other aspects like machinery, bottling line, land and distribution is the responsibility of the bottler. As its CEO Mr. Ashok Jain says, “we are the software, they are the hardware”.

Cadbury’s Market Segment
Market place for any product is comprised of many different segments of consumers, each with different needs and wants. Markets segmentation can be defined in a number of ways such as:  Demographic variables (e.g. Consumers are groups, gender, material states income etc…)  The lifestyle of consumers (i.e. their interests and activities) the benefits which consumers look for in a product or on the occasions when the product might be consumed.

for example Cadbury‟s Perk and snack range. such as the.  Break segment – products which are normally consume as a snatched break and often with tea and coffee. They include product such as Cadbury‟s Dairy Milk.  Impulse segment – these products are often purchase on impulse. . It targets different segments within the market.  Take home segment – this describes product that are normally purchased in supermarkets. taken home consumed at a later stage. Cadbury takes into account all these factors when producing a range of products. eating these and then.

For. It focused firmly on its target segment. Cadbury‟s Dairy Milk chocolate suffered stagnancy even as other consumer products boomed. More proof of the chocolate is in the eating: two years into process. For seven long years. . 1994. 314 crore confectionery makers Cadbury embarked on the most outrageous repositioning exercise in the recent history of Indian marketing. And it wasn‟t so much a relaunch as it was a process of rejuvenation. Over a period of 12 months. CDM‟s market share at 25%. but the real buyer lay beyond. starting February. but sales inched along. Cadbury‟s Dairy Milk (CDM)Cadbury‟s Milk chocolate until 1986-destroying the very fundamental of generic association that had made million of Indians refer to a bar of a chocolate as a “Cadbury”. Just how did the company rejuvenate an old brand to create the marketing megs-hit of the 199s? It Stand First Among Second coming. with sale rising by an average 40% per annum. it systematically dismantled the franchise that the company had built over 30 years of its flagship brand.The Real Taste of Rejuvenation It was the market – leader. the Rs.

Cadbury was desperately seeking growth for the brand… “With a market share of 70%. A battery of test. “In mature markets. which served Up chocolate in general. from boutique product – packaged raw indulgence – to a casual food”. The next step: identify the barriers preventing consumers from chocolate as a snack.The Diagnosis Today. high recognition. into the consciousness of adult. The obvious solution. has already become a classic of advertising and marketing. . both the brand and the category were displaying symptoms of age: faltering growth. comparing chocolate consumption to a basket of competitive products revealed an unmistakable answer. Or. they had to increase consumption levels”. and COM in particular. trying to win away customers from competitors in this stagnant market wouldn‟t help. By 1993. people who‟d never bought chocolate before. They had to find new customers. The market research revealed the cause of the graying: chocolate wasn‟t a snack in India. and lack of excitement. both quantitative and qualitative. Despite low penetration. chocolate straddle a continuum. The Real Taste of Life campaign. which inevitably go together with high consumption rates in the Western markets. So. Cadbury whipped up a growth solution that involved associating the brand with snacking and functionally. in a peculiar predicament.

The children are shocked.The Tests Despite the Need To Clear The residual memory of CDM‟s former association. It was an impulse item. purging the emotional element. The first of the two commercial focused on functionality. forcing Cadbury to experiment with a combination of continuity and change. romance. followed by the mother-but. children were outraged at the idea of a parent consuming chocolate. “Cadbury had two pillars. Out went the caring . depicting four member of a family doing their own thing on a Sunday afternoon. Why for stators. consumer rejected the idea that chocolate-eating could be equated with mechanical activities like combing one‟s hair. The second commercial conveyed the same message. The children enter. while adults were down right angry at the notion of the father depriving his children of chocolate bar.sharing element. chocolates were about feelings. so it made sense to change one”. Is the storyline. The process entailed understanding the foundation of the brand. the mother brings another bar out of her bag. but the family context stayed. so why shouldn‟t it be sold as one?”. both ads failed on pre – airing tests. by that time. The last shot more CDM bars strew around casually. engrossed. each casually munching away on chocolates. Chocolate should be eaten whenever you feel like. Just as important. since it was these that would support the new structure”.and . the father has completed the distinctly un paternal act of devouring the entire bar. love . where upon the produces another bar for them-only to eat that up too. gnawing away at a bar of CDM. caution prevented a big break with the past. The father watches TV. Despite their strategic intent. After all. There had to be magic. The less than – subtle message: eating chocolate‟s just an everyday affair. without special occasion or relationship coming into play. Finally.

and emotion. all his cognitive preconception about the product would come to the fore. but gorge themselves. Cadbury‟s found that adult as parents behave very differently from adults as adults. He‟d think about the reasons why. they chose to create a new brand identity. Tap child-ego state within the adult. “The implication”:“The moment the adult was shown in the context of his role as a parent. It was sans emotion”. People forbid their children from having chips. The Prescription The crucial question that Cadbury was confronted with: what strategy should it deploy to rejuvenate COM in a way that would appeal to the child lurking within the adult? To inject a modern flavor into COM. into adult behavior. and the craving for instant gratification. These elements had been ripped away from the advertising. however. “Using transactional analysis on response. who decrees that brand identity should establish a relationship between the brand and the customer by generating value proposition involving functional. “Parent Are Different From Adults” Even as the ad failed. and the block would automatically come up”. stimulating desire. emotional. in the form of a new insight. or selfexpressive benefits. spontaneity. they generated a valuable byproduct. borrowing a leaf from marketing guru David Aaker. . “The Ads Had To Be Linkable” “The consumer will always tell what his current belief system is. not what it should be Cadbury‟s job to mould has habits and behavior in a way that would increase consumption for product and brand”.

Nowhere did they actually say. without explicitly identifying adults as the target customer. with the pre – 1990‟s sacrosanct values of filial and family love being overshadowed by the manifestation of a larger need for self – expression. Thus it was that. they decide to simply portray occasion of childlike-but not childish-behavior from adults. young girl breaking into a spirit. Therein lay the opportunity for both unshackling consumption and creating all-new association for CDM. That the consumption had to be liked before it could penetrate the cultural resistance to chocolate consumption by adults was obvious. you‟re an adult. To translate the brief into the commercial. the young man tossing a bar of chocolate at his sweet-heart departing in a bus-was created. you can eat it. Cadbury‟s people insisted that the rejuvenate be enriched with compensation – and equally enduring – positive values: universal truths. “They left the connection to be made by the customer” “In the process they were able to get viewer involvement and high levels of empathy. “There was a definite yearning to be free child”. the montage of the child in the man-the old man kicking the football. enduring human values.“Impulse Drives Chocolate Sales” One of the tools Cadbury‟s used was Jean – Neal Kapferer‟s Brand Prism model to examine whether contemporary value systems offered a peg on which the brand could be judge. The Elixir Having decided to barter the distinctly use selfish values of sharing and caring for the suspiciously self-centered one of self-expression. a distinct shift from collectivism to individualism. and universal moment of joy. The study disclosed. the pregnant woman carving a chocolate. Because nobody wants to be told”. . interlaid.

In other words. But why likeability and comprehension? Simple: the first was meant to be the vehicle on which the daring idea-that adults should enjoy chocolate-would ride into the consumer‟s psyche. the commercial was meant to make him smile at firstand only then realize the import once of the message. “If asked upfront. Cadbury decided to test the commercial being devised by O&M‟s creative team not for the tire battery of likeability. comprehension. Nor was there much chance of her announcing an immediate change in behavior”. credibility and behavior modification – but only for the first two. “What was clear in this case was that likeability would have to include identification and feeling warmth.Taking a contrition stance. the consumer was hardly likely to consider the dramatically-different idea credible. which is where the comprehension had to be tested.” .

The mnemonic of 1 ½ glass reached to consumer through every magazines. the commercial was meant to make him smile at firstand only then realize the import once of the message.” Dairy Milk had successfully enabled the free child in the consumer subsequent adverting used the same communication strategy. “What was clear in this case was . accessions.”. It depicted the essence of one and a half glass of milk pouring in to a boy Dairy Milk unique glass and half in to a chunk icon shows the glass and a half of full cream milk flowing in to the chunk of dairy milk conveying the deliciousness and taste appeal of the gooey. The common refrain linking them was the adult in a free child mode – spottiness. It was high on likeability. newspaper. T. the young man tossing a bar chocolate at his sweet heart departing into a bus. In other words.V. evoked a great degree of empathy and identification consumers‟ response were those me…… “Feel like that……. The second ad was montage of vignettes from every day lives of young and old which focused on showing a series of emotions. “Every feels like this”……. The ad received an overwhelming response. The old man kicking the football. The ad created a being out the child in the man created to bring out the child in the. which is where the comprehension had to be tested. poster. The ad was protested among adult‟s trough focus groups. Consumers described dairy milk as “… of all ages” “Eat..The Real Taste of Life Campaign The very first ad in the campaign in 94 was „block – Buster‟. smooth chocolate inside the pack that children like. young girls breaking into a spirit. the pregnant women craving chocolate. when ever you feel like it…you do not have to wait for an occasion. impulsive and carefree. creamy.

Cadbury „substantially‟ increase penetration level of the chocolate category in the next few years. to make chocolate eating a regular habit. The objective behind tne new communication on Cadbury Dairy Milk is to make the chocolate category more socially and culturally relevant and drive penetration in the process. The new campaign has been launched in tandem with the old ar@@ Winning „Kuch Khass Hai‟ campaign and the media strategy is to let the two co – exist towards a common vision “providing a Cadbury in every pocket”.‟ The New campaign is worth noting as it clearly differ from the earlier one in terms of rectifying the consumer perception about chocolate being an up market impulse – driven product. with the launch of the new colloquial advertising campaign featuring „Khaannein MTV VJ Wallon Khaannein Ka Bahana India Chahiya aimed to Cyrus Broacha. The current estimated penetration level of the chocolate category is 19% in the urban market.” The New Campaign And finally.that likeability would have to include identification and feeling warmth. . The attempt now is to change the image.

K Kh ha ab bi iB Bh hi i.K Ka ah hi in nB Bh hi i! ! . . .T Th ho od di iS Se eP Pe et tP Pu uj ja a.

Fruit & Nut. chocolate are now being positioned near meal substitutes. Nutties. Cadbury account for about 70% followed by Nestle. with a share of around 20%. Of the 20. Butterscotch & Tiffns – a new lease of life.Chocolate Market Share The Indian chocolate market is getting bigger and better. Éclairs. From a treat for kids. though. in the sense adults are an important target segment now. Though with a much smaller portfolio. Crackle. companies like Cadbury India are launching indigenous product made to international standards. the premium segment (composing imported varieties) is opening up on the other. Nestle is putting up a tough fight. 400 crore. The reposting of Cadbury‟s Dairy Milk in 1994 as the „real taste of life (through the Slice of Life and Cricket commercial by Ogilvy and Mather) grew the entire milk chocolate by 20%. In other words. thanks to the initiative taken by the Cadbury India during early nineties. The battle. it . While on one hand. with minor player taking the rest.000 tones chocolate market worth about Rs. Gems. and gave the Cadbury‟s range – 5 Star. Amul has about 5% of the market. is between Cadbury and Nestle. The market itself has become more broad based.

Malted food drinks category consists of white drink and down drink. Cadbury also has a strong brand vita in the malted health drink category which account for 24% of turnover. White drinks accounts for almost two third market of the 82.facilitated the repositioning of Cadbury‟s sub brands in the basket. Candico. Some o the strategic clicked. product company with attempted launch of expanding sugar confectionary portfolio. its Confectionary sales accounting for 12% of turnover is contributed Éclairs. without much success. Leading national players are nutrine. through occasion linked gifts. largely Chocolates by contribute The to 64% of Cadbury‟s turnover. The company is pushing the gifting segment. Cadbury‟s Bourn Vita is leader in the down drink coca based segment in the white drink segment Smith Kline‟s Horlicks in the Nestle Milo . Cadbury has 4% of the market share in this segment. There exists an even larger unorganized market in the confectionary segment. GCMMF nitramul and other Smith Kline brand Boost. the MNCs such as Joyco and Perfetti have aggressively expanded their presence in the country in the last few years. Maltova and Viva Cadbury bold 14% market share in food drinks segment. based confectionary goodly and fruits. Joyoco India and Perfetti. while other did not quite take off. Pary‟s Ravalgoan. accounting for largest proportion of all India‟s sale.000 for market south and east are large market for drinks. . Parle.

520 million. Company added 8 million new consumers and saw its outlets grow to 4. .5 lakhs and consumer to 60 million. This was achieved through innovative marketing strategies and focused advertising campaign foe flagship brand Dairy Milk. The company achieved a volume growth of 5. Britannia is the leader brand with 21% among those who expressed an opinion saying that they like advertising for the brand Cadbury was clearly No. Sports are clear winners.8% to Rs. For the Chowlate company.2 with 18% to which CDM throw in its weight with 13% and pork with 4%. Parle and south based Arun Le Gram with 5% each. Net profit rose sharply by 41. Tied for the brand place are Amul. Khane Walo Lo.2%. Khane Ka Bhanna and the Karwa Cauth. Disappointment among bid brands Kissan and Maggi and Kwality Walls (1%) each. Reduced material and energy cost and tioter control over working capital over working capital and capital expenditure enabled the company to improve the profitability.Despite tough market condition and increased competition Cadbury managed to record a double digit (11%) top line growth in 2000.In the food segment.

Changing Product Mix Contributing to turnover 1998 Chocolate Sugar Confecting Food Drink 59% 9% 32% Contributing to turnover 2003 64% 12% 24% Current Market Share Chocolate 69.0% 14.2% Sugar Confectionary Food Drink 4.2% Expanding Distribution Reach 2001 + Distribution 450000 Retail Outlet 60 Million Consumers .

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etc. Tremendous scope for per capita consumption (160 gms of 8 – 10 kg) 2. Low cost of production due to economic of scale. Mozart.) 2. Three sectors. That means higher profits and / or more competitioners.leader in brown segment). 3. Better market penetration.000 retailers. Naushans.. Chocs (70% share). Second best manufacturing location throughout Cadbury Schweppes. Ltd. Fazer. 450. Due to its 54 years presence in India – has deep penetration – 2100 distributors. only one central brand (CDM). 2.SWOT ANALYSIS Strength 1. Increasing per capita national income resulting in higher disposable income. Key products. ..Very strong brand equity in India. Confec (4%).“Make in India” tag once the economy opens up wore and imports rush in. 60 mid urban (22%) customers. Weakness 1. 3. Pralines range totally wising in India. Dint. 4. food drinks (14% . Opportunities 1. Poor technology in India compared to current international technologies (Godiva. 1.

7. 5. PEST ANALYSIS Will lose market share with globalization (a la Maruti) but will remain brand leader. Threats a] Major :None. it is today in India.3. Substitute to “Mithais” with higher calories/cholesterol. Increasing departmental stores concept – impulse @ at cash counters. Godiva. b] Minor :Globalization will being in better brands for upper end of the market (Liest. Globalisation: optimal use of global Cadbury Schweppes. etc…). 6. 4. . Increasing gifts cultures. Due to low cost and highest brand equity. Growing middle class and growing urban population. Monarch.

1) increasing per capita income resulting in higher disposable income 2) Growing middle class/urban population – increase in demand 3) Low cost of production – better penetration S: 1) Per capita consumption expected to increase – fashion 2) Increasing gifts culture – increase in demand 3) Lower cholesterol than “mithais” (sweet meat) – substitute demand . no political effects are envisaged.P: E: since the budget range is decontrolled.

Cadbury‟s offer such product. delivering to her door step additional benefits which she would never have imagined possible.T: Will have to reinforce technology to international levels once India is a “free” economy 5 P’S OF MARKETING PRODUCT Satisfaction suffices. Chocolate & Confectionary 1) Dairy Milk 2) Fruit & Nut 3) 5 Star . But the winner will surpass them by constantly exceeding her expectation. The wide variety products offered by the company include: I. But delight dazzles the average company will compete for customer by conforming to her expectation consistently.

4) Break 5) Perk 6) Gems 7) Eclairs 8) Nutties 9) Temptation 10) Milk Treat II. Beverages III. Food Drinks 1) Bournvita 2) Drinking chocolate 3) Cocoa .

10 Rs. 10 Rs. 15 Rs. 5 Rs. 10 Rs. Dairy Milk Perk 5 Star Friut and Nut Gems Break Nutties Bournvita (500 gm) Drinking chocolate Rs. Cadbury‟s has launched various products which cater to all customer segments. 104 Rs.PRICING Make no mistake. and then progressively moving through them. 22 Rs. Second P of marketing is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. 50 . So every customer segment has different price expectation from the product. The strategy used by Cadbury‟s is for matching the value that customer pays to buy the product with the expectation they have about what the production is worth to them. Therefore maximizing the returns involves identifying right price level for each segment. 18 Rs.

“PLACE” BRAND ISN’T THE ONLY ANY MORE. Buyers are paying for distribution equity not brand equity and market shares. The fundamental axiom of Indian consumer market is this: You can set up a state-of –the-art manufacturing facility. The cardinal task before the Indian market is managing is to shoe-horn its product on retail shelves. but the end of it all. hire the hottest strategies on the block.PHYSICAL DISTRIBUTION:. television has already primed and population for consumption. swamp prime television with best Ads. India – 1 billion people. In a product and price parity situation. distribution equity is much together to erode. km. spread cross 3. you would be know of selling your products.28 million sq. but once built. the brand that sells more is the one that reaches the highest number of customers. Marketers and finance manager need a new term to evaluate their business: Distribution Equity. Why does the company need distribution equity more anything in India? With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for ling period. and the marketer who can get to the to . 155 million household has over 4 million retail outlets in 5351 urban markets and 552725 villages. It takes much more time and effort to build.

value system.50. This increase in distribution is going to be accompanied by reduction in channel costs. Cadbury‟s distributes the product in the manner stated above. Once the stock product reaches retailers. life style. To address the issue of product stability.the consumer ahead of competition will give a hard – to – overtake lead. Cadbury‟s distribution network has expanded from 1990 distributors last year to 2100 distributors and 4. This helps in maintaining consumption in summer when sales usually drops due to the fact that the heal effects product quality and thereby off takes. language. is much higher than Nestlé‟s 12% or even pure sugar confectionery major Parry‟s 11%. Cadbury is also attempting to improve the distribution quality. it has installed visi colors at several outlets. Looking at the low penetration of the chocolate. The other reason is arch rival Nestle reaches more than a million retailers. Cadbury‟s marketing costs. . a distribution expansion would itself being incremental volume. the prospective customers can have access to the product. Own distribution network consist of clearing and forwarding (C&F) agents & distribution stockiest. And your brand equity isn‟t going to help when it comes to tackling these issues. The company is looking to reduce this parity level.000 retailers. transport and communication network. But getting their means managing wildly different terrainsclimate. at 18% of total costs. This network of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to the retailers directly. Beside use of TI tom improves logistics.

Effective advertising is rarely hectoring or loudly explicit…. PROMOTION If an advertisement is to communicate effectively. grab her acceptance and then extract retention competing with thousands of other units of communication trying to do the same. To penetrate into the inner recesses of her memory. The strategic response address the emotional appeal of the band to the child within the adult. More often than not. Whirl with the new launched temptations with the slogan “Too To Share” the communication resolves around the reluctance of a person . communication must first ensure exposure. and be prepared too take step toward the sender. Naturally. Thereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by re-discoursing the careful. grab her attention evoke her comprehension.At Cadbury. that produced just the value vacuum that Cadbury was looking to fill. It often both attracts and generates arm feelings. a successful campaign has a stronger element of the unexpected a quality that good advertising shares with much worthwhile literature. unself conscious. they believe that selling confectionery is it like selling soft drinks. Finding showed that the adults felt too conscious to be seen consuming a product actually meant for children. pleasure – seeking child within himself – a graft these feeling onto the Ad campaign like “Khane Walon Ko Khane Ka Bahana Chahiye” for CMD and “Thodi Si Pet Pooja – Kabhi Bhi Kahin Bhi” for Perk have been sure shot winner with the audience. the receiver must at least half want it to.

because of the peanut it contains.bourvita. Cadbury has a message on-screen just before the lights are dimmed to give them a chance to get their temptations. www. and up market retail outlet offer to guest and customers. There will also be after dinner sampling in restaurants – to begin with. www. hostels. it had also entered into various marketing relationship . Ad since any discussion today would be incomplete without mention „e‟ word. As well as outdoor and radio ads.cadburyindia . It tells the customer that this would be good time to get out of her temptation since he/she is bound to be alone. Ad spend in 2000 was about 14% of sales and the management said that plans to maintain as spend at this level in the current year also. which has faced problems with its taste. the management plans to tap this new channel of marketing.cadburygift. just in time of Diwali gifting market. 30 catteries in Mumbai have been selected. ad agency contract has created communication for cinemas and even ATM machines for the brand. Something familiar is planned for phone-book as well. The next round of activity will include the wafer-chocolate Perk and the Picnic bar. Éclairs has got potential for much wide distribution. wwww.who‟s got their hand on a bar of temptation to let anyone else to have a bite. Milk treat has also been launched in a module bar form. In cinemas.com that the company has launched.e.com. in a small sweets that airlines. All ICICI‟ s ATM a message flashes on the screen as soon as customer insert his ATM card.com. Beside three company website (i.

with other portals. It is more efficient to market one successful concept to one large group of people than 50 product or service ideas to 50 separate group… repositioning is a must when customer attitude have changed and product have strayed away from the consumer‟s long standing perception of the… Cadbury‟s is an anchor in sea of confectionary products. etc…. today customer uses complicated decision making process to assess the alternative before making a purchase. Since Cadbury‟s is more clearly associated with a particular set of attributes in terms of benefits and prices. supported with high ad – spends that Cadbury hopes will see it emerges stronger after the current slowdown. consumers began to demand “more for same”. As a variety of competitive claims assails her senses. . as well as expand the market. and the discounting era grew strong. the quicker becomes her search process. researching and improving the newer products that haven‟t taken off. It‟s a combination of spiffing up its key brand. Today‟s consumer demanding “more for less”. POSITIONING In the 1970s consumers were ready to pay “more for more”. Some of today‟s most successful companies recognize those customers are more educated and able to recognize true customer value… Positioning is simply concentrating on an idea – or – even a word defines that company in the mind of the consumer. specially targeted during festivals and events such as Valentines day. and the winner will be that super value marketers…. and luxury goods flourished. In the 1980s.

Éclairs was re-launched during the mid-nineties with a new name. Perk: in September. enjoyment. Targeted at children under 12 years with „Gems Bond‟ advertising. The chocolate is meant for all age groups. the company is retargeting children with its animated commercial. It symbolizes fun. Colorful . 4. It has goodness of milk. the company reworked the strategy for 5 star to make it a source of energy. But now. Crackle: it was the first Cadbury‟s chocolate to have crunch in it. Cadbury decided to too teenagers with the „Smart Very Smart‟ campaign. itself defines the positioning of the product. good items. Perk into the market. CMD: is and always remain flagship brand. The punch by the company for advertising this product life. 3. . Gems: broadcasting Gems. 5 star‟s energy bar positioning made it a snacking chocolate. It was targeted as a funky chocolate to add spark to life. taste and appetite appeal. In June 1994. 7. 5. chocolate buttons appeal most to children and that is why Cadbury is re-targeting children. though. 5 star: although positioned internationally as an energy bar. Cadbury preempted the launch of Nestlé‟s Kit-Kat by rushing a new brand. 1995. In fact. Éclairs: competing in the chewable toffees segment. Symbolizing togetherness. before the launch of Perk. “Gems are the best brand to speak to children.Positioning of individual product: 1. 5 star was positioned on an emotional platform in India during the late 1980s.” 6. Dairy Milk Éclairs. 2. 5 star was originally targeted at teenagers. „Real taste of Life‟. didn‟t prove to be feasible proposition for Cadbury.

Positioned much further on the functional scale than 5 star. Beverages VI. Bournvita combined the nutritious value with taste. While its competitors concentrated only on health aspect. Chocolate & Confectionary 1) Dairy Milk 2) Fruit & Nut 3) 5 Star 4) Break 5) Perk 6) Gems 7) Eclairs 8) Nutties 9) Temptation 10) Milk Treat V. Bournvita: positioned as tasty health drink. Perk was meant to be light snack-product for subduing the first pangs of hunger. Food Drinks 1) Bournvita 2) Drinking chocolate 3) Cocoa . IV.

the management expects that dairy milk would continue to be the central driving force in Cadbury‟s growth and that all other brands would remain peripheral to this central brand. The management has declared its intention to focus only in Éclairs (which forms a major position of its 4% share in the confectionary segment) for the time being in this category. POSITION OF THE VARIOUS BRANDS IN THE MARKET HAS BEEN LISTED BELOW . perk in E claims which have supported growth in the past. This target also appears difficult to achieve given the consumer slowdown and the fact that the company‟s consumer slow down and the fact that company is dependent on a single category chocolates to drive growth. In chocolates too ones remain on the 2-3 key brands as CDM.The outlook The Cadbury management has cut down on its growth target by setting a 10% average volume target for next 3 years (as against previous growth) coupled with in factionary price increases. this could translate into top line growth of 14 –15%. While new launched such as milk @ and Perk slims have been doing will. Effect it expanding confection any portfolio have also not yielded desired results.

Bar One 5 Star / Perk/Break KitKat Positioned as a snacking consumption “Have a Break. Cool.Cadburys brands Cadbury Dairy Milk Positioning “The Real Taste of Life” Nestle’s brands Classic Milk Chocolate Positioning Positioned as an affordable enriched milk chocolate Positioned as Trendy. Have a Kit Kat” . any time snack. Fruit n Nut Creamy bar Roast Almond Crackle Bournvita Position as adults as an impulse any time purchase – self expression values attached Perk – Positioned as Snacking consumption “Thodi si Pet Pooja” 5 Star Energy bar Reach for the Stars.

. Simple average were used to get answer to questions       26% of people are interested in eating chocolate and 74% are not eating.DATA ANALYSIS AND FINDINGS Data was tabulated manually and was also analyzed manually. which has 2 or more choices as their answers. Cadbury chocolate is very easily available in the market. 54% people are not aware from this brand while 46% are aware. Amul and others are take place. Excel was used to make graphs had pie charts. Main technique used were: Modal value was used to analyze the questions. Dairy milk and 5 star is most famous product of Cadbury. Most of the people buy chocolate from superstore and after that from retail or movie mall. The Cadbury brand chocolate 75% of people prefer after that Nestle.

FINDINGS AND SURVEY 1. Do you eat chocolates? Yes 26% No 74% 2.Which brand of chocolates do you use? 80 70 60 50 40 30 20 10 0 Cadbury's Nestle Amul Others 75 60 65 30 .

Are you aware of any campaign of the above brands? Yes 46% No 54% .Where do you buy chocolates from? Movie Halls 17% Others 6% Super stores 32% Restaurants 10% Retail stores 35% 4.3.

Which cadbury’s product do you usually prefer or use? 80 70 80 60 40 20 0 Dairy Milk Fruit & Nut Temptation 24 35 40 6.5. Do you think Cadbury’s chocolate is easily available in market ? 90 80 70 60 50 40 30 20 10 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr North East West .

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.CONCLUSION This company project has demonstrated “CADBURY CHOCOLATE MARKETING STRATEGY WITH ITS MAIN COMPETITORS” that has proved to be extensive through. In this project it possible to see the success of Cadbury‟s in its indorse its strong potential to continue to do well and also gives the ways to maintain its market potential. and of great benefit to the company in furthering its competitive advantage. It also helps the company for building its future planning and targeting the customers for more satisfaction through its innovative product.

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  Grow volume sales at least 20% p.a. over the next years. . confectionery and market leadership in blown drinks.RECOMMENDATIONS  Maintain dominance in chocolate. Achieve the goal of best manufacturing location in Cadbury Schweppes world for Dairy Milk and Éclairs. child connectivity and value for money offering to be the key growth drives.  One new major product launch every year.  New channels such as gifting.

it is only natural that Cadbury‟s market share will move down from here marinating a 70% market share in a closed environment may have been easy. but it certainly won‟t be easy in liberalized environment of free imports. Therefore consumer would prefer smaller. the company has ruled out a real big chocolates launch in the current year. And it is going to be shared with other brands too in future. There is additional challenge of Cadbury‟s brand just aiming market share when the consumer has a wide portfolio of brand to choose from.Few Concerns Come To Mind With a market share of 70% in the chocolate category and with the free availability of international brands that you see in the market today. In such scenario. The growth trend of the brands therefore clearly indicates that the only brand that has grown is the one that gas received tremendous marketing and advertising support Dairy Milk withdraw support for any brand and growth loses momentum. the consumer is surely going to have a wider choice. low cost packs to bigger higher priced ones. And it is too early yet to comment on the long term response to the new launch temptations. And whatever be the anomalies of taxation or low. for how long and how many brands can the company continuously support? . They say chocolates are mostly am impulse purchase. While there would be new chocolates launch towards the end of the year.

Efficient sourcing of key raw material i. a large youth population. higher disposable income. Various measures are undertaken in all areas of operation to create value for the future. coca through forward purchase of imports.8% factor like changing attitude. the share of chocolate in 6. and low penetration of chocolate (22% of urban population) point towards a big opportunity of increasing the share of chocolate in the branded impulse among the costly alternative in the branded impulse market.6% and Cadbury‟s share in the impulse segment is 4. New channel of marketing such as gifting and child connectivity and low end value for money product for expanding the consumer base have been identified. In terms of manufacturing management focus is on optimizing manufacturing efficiencies and creating a world class manufacturing location for CDM and Éclairs.FUTURE STRATEGY In the branded impulse market. The company is today the second best manufacturing location of Cadbury‟s Schweppes in the world. higher local consumption by entering long term contract with farmer and undertaking efforts in expanding local coca area developing.  Use of it to improve logistic and distribution competitiveness . The initiatives in the terms of development a long term domestic coca a sourcing base would field maximum gains when commodity prices start moving up. It appears that company is likely to play the value game to expand the market encouraged by the recent success of its low priced „value for many packs‟.e.

where it could optimally use the global Cadbury Schweppes portfolio. The company has added 8 million new consumer in the current year and how has consumer base of 60 million although the growth in absolute numbers is lower than targeted. . This would be really effective in maintaining consumption in summer.  Improving distribution quality by addressing issues of product stability by installation of visi coolers at several outlets.  It is of the view that size of this imported premium market is look small to threaten its own volumes or sales in fact. when sales usually dip due to the fact that the heat effects product quality and thereby consumption. At the same time the management is also aware of external changes taking place in the competitive environment and is taking steps to remain competitive in the future environment of free imports.  The above are some steps being taken internally to improve future operation and profitability. lower  barrier to trade and the advent of all global players in to the country. Expand the consumer base.  `Utilizing mass media to create and maintain brands. The management is not unduly concerned about the huge deluge of imported chocolate brands in the market place. the company has been able to increase the width of its consumer base through launch of low priced products. the company looks at the tree important as an opportunity.

The only concerns that the company has in this regard is the current high level of duties. but it would also be more cost effective to test market new product as well as improve speed of response to change in consumer preference through imports. .The company would be able to not only provide greater variety. which limit the opportunity to launch value for money products.

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cadburyindia.google.com Web site: www.com Business World .BIBLIOGRAPHY        Philip Kotler (Eighth Edition) “Marketing Management”. Advertising and marketing Magazine Company Literature Market survey and questionnaires Web site: www. Prentice Hall of India Ltd.

Describe Cadbury’s Chocolate in one word? ______________________________________________________ 8.QUESTIONNAIRE 1. Which Cadbury’s product do you usually prefer or use?  Dairy Milk  5 Star  Fruit & Nut  Perk  Temptation 6. Do you eat chocolates?  Yes  No 2. Which brand of chocolates do you use?  Cadbury’s  Nestle  Amul  Others 3. Are you aware of any campaign of the above brands?  Yes  No 5. Your comments on Cadbury’s products? ______________________________________________________ . Where do you buy chocolates from?  Super stores  Retail Stores  Restaurants  Movie Halls  Others 4. Do you think Cadbury’s chocolate is easily available in market?  Yes  No 7.