Professional Documents
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Submitted in Partial Fulfillment For The Award of Degree: (Affiliated To Ch. Charan Singh University, Meerut)
Submitted in Partial Fulfillment For The Award of Degree: (Affiliated To Ch. Charan Singh University, Meerut)
ITS COMPETITORS
A PROJECT REPORT
Of
In
BUSINESS MANAGEMENT
By
YASHI BISHNOI
Roll no. – 1709191653
STUDENT’S DECLARATION
I, hereby, declare that the work which is being presented in this report entitled “ Marketing Strategies
Of Cadbury” submitted in partial fulfillment of the requirements for the award of Bachelor Of
Business Administration (BBA) Degree in Business Management, to the Department of Business
Management, Institute Of Management Studies, Noida, Uttar Pradesh, India, is an authentic record of
my own work carried out during the academic year 2020 under the supervision of Ms. Neerja Anand,
Department of Business Management, Institute Of Management Studies, Noida, Uttar Pradesh, India.
To the best of my knowledge, the matter embodied in this report has not been submitted for the award
of any other degree or diploma in any other Institute or University.
It is further stated that if at any later stage, any plagiarism or any material of this report found copied
from other’s work/source, I will be solely responsible for that and I will abide by the rules of Intellectual
Property Act, Govt. of India.
Date:
Place: (Yashi Bishnoi)
ii
INSTITUTE OF MANAGEMENT STUDIES, NOIDA
CERTIFICATE
I, Ms. NEERJA ANAND hereby certify that Ms. YASHI BISHNOI, Student of Institute of
Management Studies, Noida of Business Management, has completed a project titled “MARKETING
STRATEGIES OF CADBURY”, in the academic year 2020.
The work of the student is original and the information and the statement made by the student in the
project is true to the best of my Knowledge.
iii
ACKNOWLEDGEMENT
I would like to extend my gratitude and my sincere thanks to my honorable, esteemed supervisor Ms.
Neerja Anand, Department of Business Management. She is not only a great academician with deep
vision but also most importantly a kind person. I sincerely thanks for her exemplary guidance and
encouragement. Her trust and support inspired me in the important moments of making right decision
and I am glad to worked with her.
I am indebted to my teachers and gurus who molded at this junction of my career from where I can take
off better in the competitive scenario of today’s world, so I also wish my gratitude to all other respected
faculties of Institute of Management Studies, Noida, for their kind hearted support.
iv
EXECUTIVE SUMMARY
Cadbury Schweppes is the world’s largest confectionery company. They manufacture, market and
distribute branded chocolates, confectionery and beverages that bring smiles to millions of consumers
across 180 countries. In 1824 John Cadbury opened a shop in Birmingham selling cocoa and chocolate.
Cadbury has been synonymous with chocolate since 1824; the most famous being Cadbury Dairy Milk;
first launched in 1905, and still a market leader today. These two great household names merged in
1969 to form Cadbury Schweppes plc.
The journey of Cadbury Dairy Milk started way back in the year 1905 from Bourneville, UK but it came
to the Indian market in 1948. From the time it was introduced in India, Dairy Milk has been the market
leader in the confectionery segment commanding a 30%market share and average daily sales of 1
million bars. The reason that our group chose Cadbury dairy milk for the brand audit is that it provides
us with ample scope to study the various aspects of branding like communication strategies, innovative
ad campaigns, establishing an emotional connect with consumers, brand repositioning, rebranding etc.
We’ll be studying the evolution of Cadbury dairy Milk by concentrating on the following aspects:
How dairy milk redefined the chocolate segment from being seen as ‚meant for kids‛ to a thing
to be enjoyed by everyone in moments of joy and celebration by targeting the adult segment.
Dairy Milk has always tried to keep a strong association with milk, with slogans such as "a glass
and a half of full cream milk in every half pound" and advertisements that feature a glass of
milk pouring out and forming the bar.
Its use of innovative and interesting ad campaigns to make chocolate eating a habit among the
consumers, especially the adults.
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TABLE OF CONTENTS
I Student’s Declaration ii
II Certificate iii
III Acknowledgement iv
IV Executive Summary v
V List of Figures viii
1) 1 INTRODUCTION 2
2) 1.1 ABOUT CADBURY 4
3) 1.2 INTERESTING FACTS ABOUT CADBURY 5
4) 1.3 HISTORY OF CADBURY 5
5) 1.4 PRODUCTS OF CADBURY LAUCHED IN MARKET 7
6) 1.5 EXPANSION AND GROWTH OF CADBURY 8
7) 1.6 CADBURY INDIA 9
8) 1.7 TODAY’S PRODUCTS OF CADBURY 11
9) 1.8 SWOT ANALYSIS OF CADBURY 14
10) 1.9 MARKETTING STRATEGIES OF CADBURY 16
11) 1.10 BRAND AMBASSADOR OF CADBURY 26
12) 2.1 LITERATURE REVIEW 29
13) 2.2 OBJECTIVES 31
14) 2.3 CORPORATE OBJECTIVES 31
15) 2.4 MARKETTING OBJECTIVES 32
16) 2.5 STAKEHOLDERS OBJECTIVES 32
17) 2.6 AWARDS AND ACHIVEMENTS OF CADBURY 33
18) 3.1 PRODUCT LIFE CYCLE OF CDM 39
19) 3.2 CDM MARKETTING PLAN FOR DIFFERENT AGE GROUPS 40
20) 3.2 MICRO ENVIRONMENTAL ANALYSIS 44
21) 3.4 MACRO ENVIRONMENTAL - PEST ANALYSIS 47
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22) 3.5 ADVERTISING THEIR PRODUCTS IN DIFFERENT WAYS 49
23) 3.6 THE 5 C’s MODEL 52
24) 3.7 SOURCES OF INCOME 53
25) 3.8 FUTURE STRATEGIES 53
26) 4.1 PRODUCTION LAYOUT 56
27) 4.2 OTHER RAW MATERIALS DIFFERENT SUPPLIERS IN DIFFRENT 56
PLANT
28) 4.3 SUPPLIER RELATIONSHIPS 56
29) 4.4 QUALITY CONCEPT USED BY THE COMPANY 57
30) 4.5 POLICIES OF THE COMPANY 57
31) 4.6 QUALITY MANAGEMENT 59
32) 4.7 ENVIRONMENTAL MANAGEMENT 59
33) 4.8 WORK MEASUREMENT 60
34) 4.9 VALUE ENGINEERING 60
35) 4.10 MATERIAL MANAGEMENT 61
36) 5.1 RESEARCH 63
37) 5.2 OBJECTIVES OF RESEARCH 63
38) 5.3 RESEARCH APPROACHES 64
39) 5.4 TYPES OF RESEARCH 64
40) 5.5 IMPORTANCE OF KNOWING HOW TO CONDUCT REASEARCH 66
41) 5.6 RESEARCH METHODS AND RESEARCH METHODOLOGY 67
42) 5.7 VARIOUS STAGES OF A RESEARCH 67
43) 5.8 SCOPE OF THE STUDY 68
44) 6.1 DATA ANALYSIS 72
45) 6.2 SURVRY RESULTS 76
46) 6.3 ANALYSIS OF THE QUESTIONNAIRE 82
47) 7.1 FINDINGS 93
48) 7.2 SUGGESTIONS 96
49) 7.3 CONCLUSION 97
50) BIBLIOGRAPHY 99
51) QUESTIONAIRE 100
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LIST OF FIGURES
viii
CHAPTER – 1
1
INTRODUCTION
Since then we have expanded our business throughout the world by a programme of
organic and acquisition led growth. On 7 May 2008, the separation of our confectionery
and Americas Beverages businesses was completed creating Cadbury plc with a vision
to be the world's BIGGEST and BEST confectionery company.
• Mission
o By managing housing stock and estates to the highest standard for all
residents.
2
communities.
• Vision
Confectionery is a unique impulse category because it’s eaten regularly throughout the
day rather than specifically at meal times. Confectionery now accounts for 24% of all
food media spend, more than any other food category. According to a survey, purchase
levels for confectionery are significantly higher than any other impulse category.
This particular bar graph shows the percentage of population buying different impulse
3
category.
The Indian chocolate market is estimated to be worth Rs. 3.2 billion, with an annual
growth rate of 10 percent. Per Capita Consumption levels are very low in India, as
compared to 8.7 kg per year in the U.K. The market therefore offers tremendous
potential for growth. In our analysis we are concentrating on the chocolate industry in
general and Cadbury’s in particular.
Cadbury India Limited (CIL), a part of the Cadbury Schweppes Group, is India’s
leading confectionary manufacturer. Cadbury’s Dairy Milk, 5 Star, Éclairs, Perk and
Gems are the largest selling brands in their segments. CIL is estimated to have a 65
percent share of the Indian chocolate market. In fact, the word Cadbury is a classic
example of a brand coming to symbolize a product category.
George developed the Bourneville estate, a model village designed to give the
company's workers improved living conditions. Dairy Milk chocolate, introduced in
1905, used a higher proportion of milk within the recipe compared with rival products.
By 1914, the chocolate was the company's best-selling product.
4
Cadbury merged with J. S. Fry & Sons in 1919, and Schweppes in 1969. Cadbury was
a constant constituent of the FTSE 100 from the index's 1984 inception until the
company was bought by Kraft Foods in 2010.
On 4 August 2011, Kraft Foods announced they would be splitting into two companies
beginning on 1 October 2012. The confectionery business of Kraft became Mondelēz
International, of which Cadbury is a subsidiary.
• Cadbury was the first company to include pictures instead of printed text
on chocolate boxes.
• George Cadbury didn’t want to take mothers away from their children, so
he developed a company rule that women had to leave work when they got
married. Each married woman was given a bible and a carnation as wedding
gifts.
• In 1886 Cadbury became one of the first firms to have dining rooms with
kitchens and food for sale.
• A miniature metal animal (elephant, penguin, owl, fox, duck, squirrel, rabbit
or turtle) was given away with specially designed cocoa tins in 1934. In the
same year, Cadbury's tokens, which came with packs of cocoa, could be
redeemed for lamps, kettles and saucepans.
• So many children joined Cadbury’s Coco cub Club that it had 300,000
members in 1936.
Cadbury, the global leader in the chocolate confectionery market, began in 1824 when
a young Quaker named John Cadbury opened up a shop in Birmingham. John sold
coffee, tea, drinking chocolate and cocoa at his shop. Believing that alcohol was a main
5
cause of poverty, John hoped his products might serve as an alternative. He also sold
hops and mustard. Like many Quakers John had high quality standards for all of his
products.
At that time in England, Quakers were prohibited from attending university, since it
was affiliated with the established church, and their pacifist beliefs kept them from
joining the military. With few opportunities available, Quakers often went into
business-related fields and/or devoted their time to missions of social reform.
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate. Soon
John’s brother Benjamin joined the company to form Cadbury Brothers of Birmingham.
The Cadbury brothers opened an office in London and received a Royal Warrant (one
of many) as manufacturers of chocolate and cocoa to Queen Victoria in 1854. Six years
later the brothers dissolved their partnership because of John’s failing health and the
death of his wife.
They left the business to John's sons George and Richard. John devoted the rest of his
life to social work and died in 1889. George and Richard continued to expand the
product line, and by 1864, they were pulling a profit. Cadbury’s Cocoa Essence, which
was advertised as "absolutely pure and therefore best," was an all-natural product made
with pure cocoa butter and no starchy ingredients. Cocoa Essence was the beginning of
chocolate as we know it today. The brothers soon moved their manufacturing operations
to a larger facility four miles south of Birmingham. The factory and area became known
as Bourneville.
With Cadbury’s continued success in chocolate, George and Richard stopped selling
tea in 1873. Master confectioner Frederic Kinchella was appointed to share his recipe
and production secrets with Cadbury workers. This resulted in Cadbury producing
chocolate covered nougats, bonbons delices, pistache, caramels, Aveline’s and more.
Cadbury manufactured its first milk chocolate in 1897. Two years later the Bourneville
factory employed 2,600 people and Cadbury was incorporated as a limited company.
During World War I, more than 2,000 of Cadbury’s male employees joined the Armed
Forces. Cadbury supported the war effort, sending warm clothing, books and chocolate
to the soldiers. Cadbury supplemented the government allowances to the dependents of
their workers.
When the workers returned, they were able to return to work, take educational courses,
and injured or ill employees were looked after in convalescent homes. During this
period trade overseas increased, and Cadbury opened its first overseas factory near
Hobart, Tasmania. The next year Cadbury merged with JS Fry & Sons, a past market
leader in chocolate.
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Cadbury supported the war effort during World War II by converting parts of its factory
into workrooms to manufacture equipment like milling machines for rifle factories and
parts like pilot seats for defiant fighter planes. Workers plowed football fields to grow
crops, and the Cadbury St. John’s Ambulance unit helped people during air raids.
Chocolate was considered essential for the Armed Forces and civilians. Rationing
finally ended in 1949.
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17 1987 Cadbury Twirl
18 1992 Cadbury Timeout
19 1996 Cadbury Fuse
20 2001 Cadbury Brunch bar, Dream & Snowflake
21 2005 Tumbles
22 2007 Cadbury Schweppes
23 2012 Cadbury Diary milk Bubbly
24 2015 Marvelous creations
25 2017 Cadbury Diary milk Bubbly Oreo
1824 – A business was opened in 1824 by a young Quaker, John Cadbury, in Bull
street Birmingham was to be the foundation of Cadbury Limited, now one of the
world’s largest producer of chocolate.
1831 – By this year the business had changed from a grocery shop and John Cadbury
had become a manufacturer of drinking chocolate and cocoa. This was the start of
Cadbury manufacturing business as it is known today. A larger factory in Bridge Street
Birmingham was rented in 1847, John Cadbury was joined by his brother Birmingham
and the business became Cadbury Brother of Birmingham.
1861 – John Cadbury resigned his business and handed over to his sons, Richard, 25
and George, 21 who after 5 difficult years almost shut down the business to take up
other vocation. Fortunately for generation of chocolate lovers, they didn’t.
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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, but the plentiful supply of coca butter remaining was also
used to make new kind of eating chocolate. The essence was advertised as ‘Absolutely
pure, therefore best’.
1879 – Business prospered from this time and Cadbury Brother outgrew the Bridge
Street factory, moving in 1879 to a ‘Greenfield’ site some miles from the center of
Birmingham which came to call Bourneville. The opening of the Cadbury factory in a
garden also heralded a new era in industrial relations and employee welfare with joint
consultation being just one of the introduced by the pioneering Cadbury Brothers.
1899 – In this year the business private limited company – Cadbury Brothers Limited
progress since the start of the century. Chocolate has moved being a “luxury” item to
well within the financial reach of everyone.
1905 – Cadbury has many famous brands with one of major success story being
Cadbury’s Dairy Milk chocolate launched in 1905, today Britain’s favorite module
chocolate bar.
Cadbury today is the market leader in the U.K chocolate confectionary market,
employing the most advanced processing technology and management information and
control techniques.
The company is the confectionary division of Cadbury Schweppes plc which is major
force in the confectionary and soft drinks international market. World - wide Cadbury
is one of the pre – eminent names in confectionary with impressive range of famous
brands.
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, smoothness
and snap, so characteristics of Cadbury’s chocolate.
9
In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years
of existence, it today has five company-owned manufacturing facilities at Thane, Induri
(Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales
offices (New Delhi, Mumbai, Kolkata and Chennai).
The corporate office is in Mumbai Currently Cadbury India operates in four categories
viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. In the
Chocolate Confectionery business, Cadbury has maintained its undisputed leadership
over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, Éclairs
and Celebrations.
Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in
the world! Our flagship brand Cadbury Dairy Milk is considered the "gold standard"
for chocolates in India.
Cadbury’s Dairy Milk started in Bourneville in the UK in 1905, but the journey with
true chocoholics started in India 43 years later. Cadbury’s has been the number one
market leader in chocolate sales for years. Cadbury’s has claimed that it has been the
source of every Indian’s moment of happiness, joy and celebration – whether this is
true, it’s doubtful. To this day, ‘Cadbury Dairy Milk’ alone has a 30% value share in
the Indian chocolate market.
In the early 90’s, indulgent chocolates were only seen as a child’s heavenly dream -
only rewarded for good behavior, or perhaps even for a bribe. However, in the mid 90’s
a new campaign was released, (‘The Real Taste of Life’) re-defining the outlook from
“just for kids” to the “kids in all of us”.
This new campaign brought out the forgotten child in every adult, flushing back
memories of the very first moment they tasted chocolate. Cadbury Dairy Milk soon
became the ideal expression of “’spontaneity’” and “’shared good feels’”.
The first taste of chocolate was defined by Cadbury in the Indian sub-continent. It has
been more than 50 years of calling chocolates “Cadbury” in India. The company today
employs nearly 2000 people across India. We work together to create brands people
10
love. We believe wholeheartedly that the way to create brands people love is through
our people. If you desire to work with the world’s number 1 confectionery company,
we’ve got great opportunities in store for you.
You will typically start your career with us in a function in one of our many businesses.
You will then be able to choose whether to develop your career as a generalist or
specialist. Whichever path you choose, you will be encouraged to gain experience of
different businesses, brands and people.
Make your celebrations really special with a delicious chocolate treat. From the
indulgent Flake Celebration Cake to the Cadbury Buttons Party Cake. Cadbury's
ranges of Party Cakes are perfect for any special occasion.
Cadbury Dairy Milk unveils a yummy invention which heralds a new dawn for
hot chocolate lovers: Hot Choc Chunks! The chunks of real chocolate melt into
milk to make a smooth delicious creamy treat! Cadbury Hot Choc Chunks is
now Fair-trade certified.
3. Cadbury Clusters -
Cadbury Clusters are tasty treats of crunchy flakes and juicy raisins tumbled in
scrumptious Cadbury milk chocolate. They're wonderfully odd look odd, taste
wonderful.
Whether you fancy a daytime nibble to cheer you up, a little bit of evening
indulgence or a bag to share with friends –Cadbury Clusters are ideal! Launched
in 2009, they're now available across the UK.
4. Cadbury Picnic –
Crispy wafer and chewy caramel covered in peanuts, raisins and Cadbury milk
chocolate. Picnic's been going since 1958 and you'll still find its nobly goodness
in a shop near you.
Probably one of the most memorable campaigns for the brand was one which
11
featured a camel called Calvin which was singing a song about the 'chew' of the
bar. In Australia it's marketed as being 'deliciously ugly'! How rude!
5. Diary Milk –
The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, U.K.,
but the journey with chocolate lovers in India began in 1948.The pure taste of
Cadbury Dairy Milk is the taste most Indians crave for when they think of
Cadbury Dairy Milk.
The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste
of Cadbury Dairy Milk with a variety of ingredients and are very popular
amongst teens & adults. Recently, Cadbury Dairy Milk Desserts was launched,
specifically to cater to the urge for 'something sweet' after meals.
Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk
Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy
Milk 2 in 1, a delightful combination of milk chocolate and white chocolate.
Giving consumers an exciting reason to keep coming back into the fun filled
world of Cadbury.
6. Gems –
Launched in 1968, Cadbury Gems has captured the fancy of children for more
than 4 decades now. Supported by a number of popular TVCs since the Eighties,
Gems is uniquely positioned because of its chocolate taste, colorful buttons and
multiplicity.
The taste and fun associated with eating Cadbury Gems and the joy of sharing it
with friends has also made the brand a source of nostalgia for older consumers.
Simply put, eating Gems brings happiness, fun and mischief to a kid's world.
Which is why, Cadbury Gems has always had fun and masti as the proposition
in all its communication. Gems, available in a Pouch and a Carton, are also
available in a Re. 1 pouch.
A gem has continuously been relevant and exciting for consumers with salient
messaging, contemporary packaging graphics, pack innovations and consumer
promotions. In December 2000, the Gems Tube Pack with a flip-top was
launched, which became an instant hit with kids. In succeeding years, the Tube
Pack has continued to excite kids with different ball games on its flip-top.
7. Bournvita -
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Cadbury was incorporated in India on July 19th, 1948 as a private limited
company under the name of Cadbury-Fry (India). Cadbury Bournvita was
launched during the same year. It is among the oldest brands in0 the Malt Based
Food / Malt Food category with a rich heritage and has always been known to
provide the best nutrition to aid growth and all-round development.
8. Cadbury Eclairs -
In 2006 Cadbury Dairy Milk Éclairs launched crunchy Éclairs with a hard-
caramel outside and delicious Cadbury Dairy Milk chocolate inside called
Cadbury Dairy Milk Éclairs Crunch.
Floating cows and a burst of bubbles launched Cadbury Diary milk Bubbly in
August 2012. The new aerated offering came in a unique mould shape with soft,
melt in your mouth, round chocolate bubbles. This delivered a smoother, lighter
and creamier taste.
Launched in 2015, Marvelous Creations broke the mould with its uniquely
shaped blocks and out of the ordinary ingredients. This became an ideal family
sharing treat.
In 2017, Cadbury diary Milk Bobbly and Oreo biscuits came together
combining joy and wonder in the most delicious way with the launch of the new
Bubbly Oreo. Following on from this delicious innovation, Cadbury got its
hands even deeper into the cookie jar to offer consumers. Cadbury chocolate
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covered Oreo, Cadbury breakaway and Cadbury fingers.
• Strengths -
The company has an already large established business in the Indian market.
Since1824, the company has established itself as a world leader in the
confectionary market. It has operated in India since 1948. In India it has about
70% of the confectionary market. In line with its vision, the company has been
striving to Bethe world leader in the confectionary industry. Through innovation
and strategic marketing, the company has acquired about 10% of the world
confectionary market (Laura, 2008).
The company has good market reputation. With strong brands in the market, the
company is well positioned in the market. In the Indian market Cadburys has
strived to build a good market reputation. This has worked positively for its
products. It is on this good reputation that the market can embark on
introducing the new brand in the market. Cadbury India was ranked the 5th most
respected Indian company by Business world magazine in 2007 (Laura, 2008).
The target market is also quite large. With the female population marketing
more than 56 percent of the Indian population, there is a wide target market for
the product. The Indian chocolate market has been recording growth in the
recent past and there are future prospects of growth. Therefore, the target market
is slowly expanding (Cadbury, 2008).
• Weakness -
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The target population is quite large and there are fears the demand for the
product may outdo the capacity of the company to satisfy the demands of the
market. It is still not clearly established the rate of growth of the product in the
market but there is expectation that the product will record a high growth rate.
This means that the company will need to increase its production capacity in
order to match the rate of growth of the market (Laura, 2008).
The company has not been able to establish a distribution network in the country
that matches the demands of the market. In this case the company has not
established a distribution network to the interior due to infrastructural
development issues (Cadbury, 2008).
Banking on the success of the other brands in the market may have negative
effects on the introduction of the new brand in the market since the products
will be targeting different markets (Cadbury, 2008).
• Opportunities –
The company can introduce the product in the market in unique way. With the
growing importance of beauty shows, the company can host beauty competition
in order to help the target market identify with the product. This will introduce
the product in the market in unique way. The company can also host other events
like sports or engage in corporate social responsibility activities like girl child
education to help the target market identify with the product more (Laura,
2008).
The company can use a wide range of marketing strategies which will lead to
the overall growth of the product in the market. The Indian advertising market
has been growing at a rapid rate which means there will be an array of
opportunities for the growth of the market. There are many advertising
strategies for the company in the Indian market (Cadbury, 2008).
• Threats –
There is threat of entry of other products in the market. In this case there are
threats of entry of new products in the market which will increase the level of
competition in the market. There are other companies which are likely to
introduce the same products in the market once there is success of the initial
product (Cadbury, 2008).
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There is a threat of change of the current external environment which is likely
to alter the nature of the market. For example, change in the taxing regime,
Government laws regulating the industry, and other factors which are likely to
impact negatively on the industry (Cadbury, 2008).
Corporate aims are the long-term intentions of a business, whereas corporate objectives
are the specific targets required to achieve the aims. The common aim and objectives
of the corporation such as Cadbury includes the following –
1. Survival
2. Profit maximization, which is often taken to be the reason why firms exists and
to be the primary objectives in practices most firms have hierarchy of objectives
when a firm’s survival is threaten it may Profit maximized in order to restore its
financial health.
For example, Cadbury set out two objectives for the development of their chocolate,
Fuse. These were:
When launching a product, the company Cadbury’s had to make sure that any new
product in the snaking sector must establish points of difference, creating a unique
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selling proposition (USP) i.e. a product with unique appeal which is not shared by any
of its competitors. Referring back to the example of Fuse, Cadbury lost a lot of money
testing out the combination of various ingredients and more than 250were combined
before the recipe of the chocolate was finalized. As the products are developed,
Cadbury tests them to ensure that consumers are willing to buy them.
Cadbury then promotes its products in various ways such as the use of above the line
promotion, which is where a product is advertised through consumer media such as
television, magazines, newspapers and radio.
One of the most fundamental issues which a company must decide on is the type of
marketing strategy, or approach, that they will adopt. There are three basic marketing
strategies which any company can follow –
❖ Undifferentiated Marketing
• Here there is a standard, unchanged product and a standard, unchanged
marketing effort.
• This strategy can reduce costs (e.g. marketing, production) but will
encounter wastage in promotional activity and possibly in distribution.
❖ Differentiated Marketing
• Here the company segments its markets and offers modified products to
different segments.
• The marketing mix elements will also be modified to suit the requirements
of the chosen segments.
❖ Concentrated Marketing
• Here the total marketing effort is aimed at one market segment.
• This strategy is really aimed at the exploitation of a limited market area and
tends to be used by those companies who have highly specialized products.
It is "niche marketing" by another name.
It is common for organizations with a diverse product range to use a combination of all
three strategies for different parts of their product mix.
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Process of Marketing Strategies
1. Segmentation
It involves finding out what kinds of consumers with different needs exist. In
the auto market, for example, some consumers demand speed and performance,
while others are much more concerned about roominess and safety. In general,
it holds true that “You can’t be all things to all people,” and experience has
demonstrated that firms that specialize in meeting the needs of one group of
consumers over another tend to be more profitable.
For example, Southwest Airlines focuses on price sensitive consumers who will
forego meals and assigned seating for low prices. In contrast, most airlines
follow the differentiated strategy: They offer high priced tickets to those who
are inflexible in that they cannot tell in advance when they need to fly and find
it impractical to stay over a Saturday. These travelers—usually business
travelers—pay high fares but can only fill the planes up partially.
Right now, Cadbury’s new advertisement campaign is doing the rounds over
the television. “Meetha hai khana, aaj pehli tareek hai” is the tagline that the
chocolate-giant has come out with. It tries to bring forth the excitement, which
lies in the minds of the general public as they wait for the first date of each
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month on the calendar. The monthly salary stashed in their hands enables them
to celebrate and rejoice by spending it on Cadbury’s Dairy Milk.
Cadbury’s Dairy Milk has come out with such memorable ad-campaigns, which
settled into the hearts of everyone. The story starts with “Once upon a time in
1948…” when Cadbury entered the Indian market. It originated from a town in
the United Kingdom, Bournville (also the name of its recently launched high-
end chocolate) in 1905.
As the Cadbury’s official web site suggests, its journey in India has been an
eventful one. In the early 1990s, it tried to cater to the sweet tooth of the
children. Those days they steered the market and took control over the
company’s major market share. However, the strategy changed by letting out
the secret that “everyone has a child inside “and thus everyone craves for the
taste of chocolate. Cadbury strategies went through a considerable change. It
now catered from children to adults and from chocolate to mithai. As the tagline
goes “Khane walon ko kahne ka bahana chahiye”.
The hole-in-one for the company was when it identified sweets to be a very
integral part of the Indian culture. It made sure that the festive and jubilant
moods of the society that had paved the way for kilos and kilos of mithai, now
made way for a large number of Cadbury’s. Meetha did to Cadbury’s what
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thanda had done for Coco-Cola. Both helped them crawl their ways through into
hearts of the rural population of the country, which had an untapped and
astounding potential.
Later came the campaigns of “Pappu paas ho gaya” acknowledged the market
potential for college-going youth. The treats for passing exams were now a
Cadbury instead of a mithai with Kuch Meetha Ho Jaye, we knew Cadbury’s
was now a desert craving as well as a popular gift-item for festivals such as
Raksha Bandhan and Diwali. Cadbury’s also diversified its range of products
with Wowie (with Disney characters for kids), Crackle, Fruit and Nut
(variations of the Dairy Milk), Bournvita (health drink) Deserts, Perk (wafer
ingredient) and éclairs (toffee segment).
Cadbury’s today holds 30 per cent markets share in the confectionaries industry
and sells around 1 million bars a day.
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. Cadbury takes into account all these factors when producing a range
of products. It targets different segments within the market, are as follows: -
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• Impulse segment – These products are often purchase on impulse, eating
these and then. They include product such as Cadbury’s Dairy Milk.
The price of Cadbury dairy milk is reasonable and affordable. So, a person does
not need to think much before purchasing it, they can easily buy it any time
when they want to buy. The income of a person does not play any important role
in it.
Cadbury dairy milk will not be much affected by the generation differences. All
types of peoples like to purchase the Cadbury dairy milk when they want to buy
it.
2. Targeting
In the next step, we decide to target one or more segments. Our choice should
generally depend on several factors. First, how well are existing segments
served by other manufacturers? It will be more difficult to appeal to a segment
that is already well served than to one whose needs are not currently being
served well.
Secondly, how large is the segment, and how can we expect it to grow? (Note
that a downside to a large, rapidly growing segment is that it tends to attract
competition). Thirdly, do we have strengths as a company that will help us
appeal particularly to one group of consumers?
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3. Positioning
The term “positioning” is widely used within the marketing and advertising
communities today, and its meaning has expanded beyond the narrow
definitions of Trout and Ries. Positioning is often used nowadays as a broad
synonym for marketing strategy. However, the terms “positioning” and
“marketing strategy” should not be used interchangeably. Rather, positioning
should be thought of as an element of strategy, a component of strategy, not as
the strategy itself.
The term “positioning” is, and should be, intimately connected to the concept
of “target market.” That is, a brand’s positioning defines the target audience.
For example, an airline might position itself against other airlines, which defines
the target audience as airline travelers. Or, it might position itself against all
modes of transportation between two destinations, which then defines the target
audience as all travelers between those two markets. The second positioning
reaches out to a much larger target audience.
Cadbury India has unveiled a new campaign that continues with the brand's
'Kuch Meetha Ho Jaye' positioning. Created by Ogilvy & Mather, the campaign
revolves around the theme of 'Pay Day', which is associated with happiness by
most people.
Brand positioning is the aspect of the brand actively communicated to the target
audience, specifically, its competitive advantage, values and imagery. It is
strongly related to the perception and image of the product. When devising a
positioning strategy for a product, marketers must establish a unique and
distinctive image of that product in the mind of the consumer. This will
differentiate a company’s product from its competitors.
Satisfaction suffices. But delight dazzles the average company will compete for
customer by conforming to her expectation consistently. But the winner will
surpass them by constantly exceeding her expectation, delivering to her door
step additional benefits which she would never have imagined possible.
Cadbury’s offer such product. The wide variety products offered by the
company include:
PRICE
Cadbury’s has launched various products which cater to all customer segments.
So, every customer segment has different price expectation from the product.
Therefore, maximizing the returns involves identifying right price level for each
segment, and then progressively moving through them.
PLACE
BRAND ISN’T THE ONLY ANY MORE. Marketers and finance manager
need a new term to evaluate their business:
Distribution Equity. It takes much more time and effort to build, but once built,
distribution equity is much together to erode. The fundamental axiom of Indian
consumer market is this that you can set up a state-of –the-art manufacturing
facility, hire the hottest strategies on the block, swamp prime television with
best Ads, but the end of it all, you would be known of selling your products.
The cardinal task before the Indian market is managing is to shoe-horn its
product on retail shelves. Buyers are paying for distribution equity not brand
equity and market shares.
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. In a
23
product and price parity situation, the brand that sells more is the one that
reaches the highest number of customers.
India – 1 billion people, 155 million household has over 4 million retail outlets
in 5351 urban markets and 552725 villages, spread cross 3.28 million sq. km.
television has already primed and population for consumption, and the marketer
who can get to the to the consumer ahead of competition will give a hard – to –
overtake lead. But getting their means managing wildly different terrains-
climate, language, value system, life style, transport and communication
network. And your brand equity isn’t going to help when it comes to tackling
these issues.
Own distribution network consists of clearing and forwarding (C&F) agents &
distribution stockiest. This network of distribution can either contact
wholesalers and which in turn retailers or the distributors can contact to the
retailers directly. Once the stock product reaches retailers, the prospective
customers can have access to the product.
PROMOTION
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To penetrate into the inner recesses of her memory, communication must first
ensure exposure, grab her attention evoke her comprehension, grab her
acceptance and then extract retention competing with thousands of other units
of communication trying to do the same
Finding showed that the adults felt too conscious to be seen consuming a
product actually meant for children. The strategic response addresses the
emotional appeal of the band to the child within the adult. Naturally, that
produced just the value vacuum that Cadbury was looking to fill.
Whirl with the new launched temptations with the slogan “Too to Share” the
communication resolves around the reluctance of a person who’s got their hand
on a bar of temptation to let anyone else to have a bite. As well as outdoor and
radio ads, ad agency contract has created communication for cinemas and even
ATM machines for the brand.
All ICICI’s ATM a message flashes on the screen as soon as customer insert his
ATM card. It tells the customer that this would be good time to get out of her
temptation since he/she is bound to be alone. Something familiar is planned for
phone-book as well. In cinemas, Cadbury has a message on-screen just before
the lights are dimmed to give them a chance to get their temptations. There will
also be after dinner sampling in restaurants – to begin with, 30 catteries in
Mumbai have been selected.
The next round of activity will include the wafer-chocolate Perk and the Picnic
bar, which has faced problems with its taste, because of the peanut it contains.
Milk treat has also been launched in a module bar form, just in time of Diwali
gifting market. Éclairs have got potential for much wide distribution, in a small
sweet that airlines, hostels, and up market retail outlet offer to guest and
customers.
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. Ad since any
discussion today would be incomplete without mention ‘e’ word, the
management plans to tap this new channel of marketing. Beside three company
website i.e. www.cadburyindia.com, wwww.bourvita.com and
www.cadburygift.com that the company has launched, it had also entered into
various marketing relationship with other portals, specially targeted during
festivals and events such as Valentine’s day , etc.
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It’s a combination of spiffing up its key brand, researching and improving the newer
products that haven’t taken off, supported with high ad – spends that Cadbury hopes
will see it emerges stronger after the current slowdown, as well as expand the market.
Cadbury India Ltd has announced that mega star Bollywood’s favourite, Kartik Aaryan
will be the company's new brand ambassador.
Kartik is the first Bollywood actor to become the brand ambassador of Cadbury Dairy
Milk Silk. So, it will be interesting to see how the brand works with him to extract most
from this partnership.
26
Over the past few months, Kartik’s brand value has risen significantly. Manyavar,
Oppo, boAt, and Hummel are some of the latest editions to Kartik’s advertising
portfolio.
On becoming a member of the Silk family, Kartik Aaryan, said, “I love playing
romantic fun-filled characters and I’m looking forward to partaking in yet another
refreshing and romantic journey with the iconic Cadbury Dairy Milk Silk. I am
extremely excited about this association.”
“Ever since we launched, Cadbury Dairy Milk Silk has grown to be one of our most
successful chocolate innovations in the country and has played a lead in the premium
segment, offering the consumers a unique and indulgent experience. We believe that
our association with Kartik Aaryan will further help in strengthening our connection
with the youth, taking Silk’s appeal to the next level," said Anil Viswanathan, director
- marketing (chocolates), Mondelez India.
Part of Mondelēz International, Mondelez India Foods Private Limited is 70-year old
firm operating in the chocolate, beverages, biscuits and candy categories in India with
brands like Cadbury Dairy Milk, Cadbury Dairy Milk Silk, Cadbury Celebrations,
Cadbury Bournville, Cadbury 5 Star, Cadbury Perk, Cadbury Fuse, Cadbury Gems,
Cadbury Bournvita, Cadbury Spready, Tang, Cadbury Oreo, Bournvita Biscuits, Halls
and Cadbury Choclairs Gold etc.
"Over the last few months, we have had some cases of infestation due to improper
storage conditions. As a company committed to ensuring that our consumers enjoy a
pristine bar of chocolate each time, we decided to take steps to reduce dependency on
storage conditions to the extent possible," said Bharat Puri, managing director, Cadbury
India Ltd. "Cadbury will do everything it can to ensure that every bar of chocolate that
a consumer buys comes full of goodness and rich taste."
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CHAPTER – 2
28
2.1 LITERATURE REVIEW
The cascading effect of a global takeover has effectively turned this 60-year-old
Indian company into a startup with new shareholders, new product categories and
brands, new leaders, a new identity and culture. New CEO Manu Anand has the
unenviable mandate of managing such unsettling change without taking his eyes off
growth. About 5,000 employees of Mondelez India, the almost unrecognizable new
avatar of what was formerly Cadbury India, left their Peddar Road, South Mumbai
HQ of over 50 years, and have just moved to a new home in India Bulls Finance
Centre, Parel. The geographical relocation is symbolic of both pain and excitement
that many old and new executives are respectively experiencing as the 60-year-old
company emerges out of two forced, tumble-dryer style makeovers triggered by
rapid ownership changes.
Mondelez International is the world's largest startup. Mondelez is at the same time
both a 20-month-old baby and a $36-billion global snack giant. And, as it seeks to
create a new culture, it has both the assets and burdens of a 100-year-old legacy.
Within 24 months, we moved from Cadbury to Kraft to Mondelez. So, moving
from each would lead to a different focus. There will be new ideas and a different
perspective and a blend of the old and new...a mindset change has to happen.
The second of the three bars in the Bliss range, here we have the old classic:
hazelnut. The slight difference here is that there are no actual hazelnuts in here,
rather a “roasted hazelnut paste (5%)” mixed in with the chocolate truffle.
Unsurprisingly Cadbury have used a brown theme along with the purple for this
particular edition, and it looks quite nice. Being a big fan of Japanese
confectionery, I like the cardboard boxes and elaborate over packaging they tend
to use, and it’s nice to see Cadbury using boxes for these rather than plain foil
wrappers. Inside the box is, of course, a foil wrapper though (akin to the kind used
in Lindt/Green & Black’s/etc.), and then ten more big truffle chunks for me to
devour. It’s nice to eat a hazelnut bar that doesn’t leave little pieces in my mouth
after I was done with it, but it seemed a little lacking in actual hazelnut taste.
29
contribution to the addressing of social injustices, these have perhaps
overshadowed the business and the brand building story that lies at the heart of its
success. The Cadbury name has been associated with chocolate and cocoa since
the early 1830's, time when mass markets were only just emerging. Cadbury
became the industry leader through harnessing the opportunities afforded by the
rapid industrialization of the United Kingdom and the emergence of a consuming
class; a situation that bears many parallels with the changes in India and China
today.
Considering that the luxury chocolate gifting market in India is still at a nascent
stage, Cadbury may have seized the right moment to launch Glow. Positioned as a
round-the-year gifting option, the new product differentiates itself from Cadbury's
Celebrations that is associated with festive occasions. Crafted in Bratislava
(Slovakia), Glow Pralines (a technical term used for chocolates which have a liquid
filling) has a liquid center made of Hazelnut crème and cocoa filling covered with
a milk chocolate smooth shell. The product comes in a golden box that has
chocolate pieces encased with a purple outside cover, which has the Cadbury Glow
logo and branding. Our experts feel that Cadbury Glow has arrived in India just at
the right time when the luxury chocolate gifting market needs the push that too
from a category leader like Cadbury. Most of the options available in this category
are still largely "duty-free" brands. It's absolutely the right time for Cadbury to
enter this segment.
Cadbury on social media suffers from the classic case of broadcasting and not
engaging the community it built. While it does well in creating many engaging
apps and properties it does little to make an effort to do one to one communication.
Also, an energetic brand like Cadbury not being on twitter actively is a little absurd.
We all know brands like that are impulsive and craving oriented and getting a
reminder via twitter while you are on the go could do wonders for not only its
30
engagement but also have an influence on its sales.
Cadbury dairy milk, Cadbury Celebrations and Cadbury Bourneville have been
doing an awesome job on Social Media, we expect a much better strategy from
Perk, which is also a Cadbury brand. Perk’s Facebook updates are timely, relevant
and witty to some extent but there is a lot more that the brand could do.
2.2 OBJECTIVES
The objectives of the marketing strategies employed by the company are manifold.
They have been segmented into proper heads for our greater understanding.
1. Corporate objectives
2. Sales objectives
3. Advertising objectives
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Broadening consumer appeal and extending reach to newer markets
Double its turnover—which stood at Rs.1, 0000 crore in 2014—by 2020. This
calls for a growth rate of over 20 percent annually and will be done by setting
up new capacity, and increasing volumes
Get more people to eat more chocolate, which calls for making it more
affordable and being more innovative
Could get into new product categories like gums where the global portfolio is
impressive
Like most players with near-monopoly shares, Cadbury runs the risk of losing share
to new players like Hershey’s, ITC (with brands like Minto and Candyman) as well
as to premium imported chocolates. But that may not be much of a worry if Cadbury
succeeds in growing the market. They could, for instance, hold a 50 per cent share but
of a much larger pie.
➢ Consumer centric:
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power brands
• Protection and ethical labour practices prior to doing business with them
33
Cadbury India has been ranked as the 7th Great Place to Work and the No.
1 FMCG company in India in 2008, by the Great Place to Work Institute.
Cadbury India' has been awarded the "Bronze Award for Excellence in People
Management" in the 'Great Place to Work 2007' survey conducted by Grow
Talent Company.
Cadbury India's Bangalore factory has received the "Suraksha Puraskar" safety
award from the National Safety Council – Karnataka chapter.
34
❖ ABBY Award wins for India
35
Cadbury India bags three awards at the Shopper and Consumer Insights Forum.
Outstanding Contribution to Shopper Insight - Purchase decision-making and
other shopper behaviour studies. Excellence in Shopper Insight & Consumer
Behaviour - Recognition for the Purple King Placement Programme.
Cadbury India wins the Client of the Year at the Effie Awards 2011. Cadbury
also wins four gold and two silver awards. Gold for both the Cadbury Dairy
Milk ‘ShubhAarambh' campaigns as well as the ‘post dinner Meetha' and
‘Celebrations' for festivals campaigns and Silver for the Oreo and Cadbury
Celebrations campaigns.
Wins the 'Client of the Year' award at the Effie Awards 2012, which was held
on December 4. Becomes the only company to win the award twice in a row
and the only company to hold the ‘Client of the year' title in the Emvies and the
Effies in the same year.
36
Cadbury Bournvita won Gold and ‘International Export Award’ at the DBA
Design Effectiveness Awards for its packaging design. Cadbury India Ltd won
a series of awards at the World Star Packaging Award. Also, Cadbury Bournvita
won an award in the Beverages category.
Mondelez India bagged 6 prestigious awards at the 5th edition of OMA Awards
hosted by POPAI (Point-of-Purchase Advertising International).
Induri Manufacturing plant won the Greentech Safety Gold Award 2017 for
implementing Best safety measures in the financial year 2016-17. Sri City Plant
received the Operational Excellence in Cold Chain Warehousing Award.
Mondelez India Packaging Team wins India Star Award for Packaging
Excellence.
37
CHAPTER – 3
38
3.1 PRODUCT LIFE CYCLE OF CDM
The product life cycle model helps marketers identify the different stages that the sales
and profits of a product go through during the course of its lifetime. There are five
stages to the product life cycle: introduction, growth, maturity, saturation and decline.
1) Introduction
Sales are slow as the product is not yet known. Costs are high due to heavy
marketing spend to create awareness. Emphasis is on advertising and
distribution. The Cadbury Dairy milk launched by Cadbury in 1905 is an
example of a brand at the introduction stage.
This particular graph shows Product Life Cycle of Cadbury Diary Milk i.e.
Revenue and Profit of different years.
2) Growth
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3) Maturity
The rate of sales growth slows down as the product has been widely distributed
and sold. The company now focuses on creating brand extensions and
promotion offers to boost sales. New product research is critical to ensure future
sales. The Cadbury Dairy Milk Silk chocolate range is an example of creating
brand extensions brand at the maturity stage.
4) Decline
Sales slow down dramatically and profits fall off. The product may be dropped
to make way for new products and the cycle recommences. So far CDM has not
reached at this stage because of extension in maturity stage.
Cadbury India Limited is always on the lookout of attractive and growing markets. It
believes in creating high barriers for any new entrant to enter the market. The objective
is to earn attractive and resilient returns on its investment faster and create its monopoly
in the market.
We will be using market penetration as the growth strategy where the business focuses
on selling existing products into existing markets. It seeks to maintain or increase the
market share of current products, secure dominance of growth markets, restructure a
mature market by driving out competitors, and, increase usage by existing customers.
The Mithai market by some estimates is almost Rs 18,000-Rs 20,000 crore in size and a
large part of this market is unorganized. We would like to target that segment.
Hospitality is another segment that is growing at a consistent rate. Chocolates in the
corporate gifting segment is the new trend, with variety of gift-packaging and
customization in branding. Chocolates have become a premium gifting option.
India, with 1,270,272,105 (1.27 billion) people is the second most populous country in
the world, while China is on the top with over 1,360,044,605 (1.36 billion) people. The
figures show that India represents almost 17.31% of the world's population, which
means one out of six people on this planet live in India.
Although, the crown of the world's most populous country is on China's head for
decades, India is all set to take the numerous positions by 2030. With the population
growth rate at 1.58%, India is predicted to have more than 1.53 billion people by the
40
end of 2030.
More than 50% of India's current population is below the age of 25 and over 65% below
the age of 35. About 72.2% of the population lives in some 638,000 villages and the
rest 27.8% in about 5,480 towns and urban agglomerations.
In this project, I will be targeting the first three groups covering 94.7 % of population.
The detail marketing strategy is given in below for all the age groups.
4 66 above 5% 0.07
Total 1.27
The total population in this age group is 0.483 billion & we believe that the 50%
population is studying in school the numbers comes around 0.241 billion. Child
connectivity & gifting segment also being attempted as a new growth segment
for the company.
We would like to target this age group by gifting the chocolates in schools. We
have traditions of distributing sweets to all school students after Flag hosting on
15th August (Independence Day) & 26th January (Republic Day). We propose,
Cadbury to tie up with bigger chain of school for distribution of Dairy Milk
Chocolate (Institutional Sales) on 15th Aug & 26th Jan. Chocolates have
become a premium gifting option. The chocolates have health benefits
compared to Indian traditional sweets. CDM has more nutritional value for
children's than any other sweet.
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Figure 3.3 - CDM Marketing plan for age 0 to 18 years
The above graph shows the scenario if we are able to get 1 % market share in
total population at the rate of Rs. 20 per unit of this age group then company can
increase its sales by 48 million INR & if we consider the best case of getting
6% market share then company can increase the market share by 290 million
INR.
This target can be achieved by doing the tie-ups with bigger schools like DAV
Schools (700 schools across India), so that market share in this segment will be
captured at faster rate. In future this can be extended to gifting chocolates on
Birthday’s & Children's day.
The total population in this age group is 0.343 billion. This segment can be
targeted in many ways. Research shows that the best way to catch this
population on internet (on Facebook). India has 78 million active users who
access Facebook (DNA News). Most of the people wishes birthday to their
friends & family member on Facebook every day.
It can propose for Cadbury to tie up with Facebook & launch the online
chocolate gifting programme on Facebook. In the application one week before
birthday Facebook will give the reminder. By using this application one can
delight your dear one by choosing the perfect Chocolate & delivering it on
Birthday with one’s birthday message for him or her.
Customers can choose the best Chocolate gift they want to send it across India.
Cadbury will take great care in delivering those Chocolate gifts across India
42
(Through distribution network). Through these gifts, we deliver the emotions
and heartfelt love that we send. Select the Chocolate, Gift wrapping & Birthday
message for your friend & place the order online. The order will be received in
district distributor system; same will be packed & dispatched by Courier at the
delivery address.
The above graph shows the scenario if we are able to get 1 % market share in
total population at the rate of Rs. 55 per unit of this age group then company can
increase its sales by 189 million INR & if we consider the best case of getting
6% market share then company can increase the market share by 1,132 million
INR.
The total population in this age group is 0.381 billion. This is majorly working
population of India. This segment can be targeted in many ways. Chocolates in
the corporate gifting segment (gifting on Birthday at office) is the new trend,
with variety of gift-packaging and customization in branding. Chocolates have
become a premium gifting option.
43
The below graph shows the scenario if Cadbury is able to get 1 % market share
in total population at the rate of Rs. 100 per unit of this age group then company
can increase its sales by 381 million INR & if we consider the best case of
getting 6% market share then company can increase the market share by 2,286
million INR.
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Milk, 5 Star, Perk vs. Nestlé’s Classic, bar-one, munch, etc.)
Barriers to Entry
The industry’s main barrier to entry is with respect to advertising. The incumbent
firms have spent millions of rupees to create brand-loyalty with consumers. The
cumulative effects of advertising create an absolute cost advantage for the
incumbent firms; thus, entrants must overcome not only current advertising
efforts, but also the lingering impact of past marketing campaigns. High sunk
costs also act as a barrier to entry.
Supplier Power
Cadbury imports cocoa beans from West Africa, primarily Ghana, and the
Americas. West Africa accounts for over 60% of world production. They buy
cocoa beans and cocoa butter from a range of suppliers, and try to minimize the
effect of cocoa price movements and secure our future requirements by entering
into forward and future contracts.
In order to ensure assured supply of raw material for its chocolates, Cadbury
India Limited has decided to sell cocoa seedlings to coconut farmers in Tamil
Nadu at Rs 4 per seedling.
A MoU was signed between Cadbury India and the Tamil Nadu government to
45
this effect. They purchase most of the sugar at prices essentially set by national
government through quotas and duties.
Buyer Power
This gives consumers a great deal of leverage and leads Cadbury to spend
millions of rupees to create product differentiation via advertisements and new
products to catch up with the evolving trends in the market.
Retail stores have significant buyer power due to their ability to charge high
fees for shelf space, which is important channel of distribution for Cadbury.
Cadbury has worked hard to build strong relationships with these retailers to
minimize this affect.
Substitutes
The current trends in the market suggest that traditional sweets are possible
substitutes for chocolates. This is further stressed by the fact that till a few years
back chocolate was not considered to be a gift item unlike sweets. However, in
recent years this scenario has changed quite rigorously because of an innovative
strategy taken up by Cadbury.
Cadbury Celebration packs. The range features a selection of stylish new packs
available in “Nutbutterscotch”, “Caramel”, “Almond Magic”, “Cashew Magic”
& “Raisin Magic”.
The range is priced between Rs 145 & Rs. 155 and is available in all premium
retail outlets across major towns in India. There is also a wide selection of online
vendors that offer Cadbury Celebration range for all kinds of occasions.
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3.4 MACRO ENVIRONMENTAL - PEST ANALYSIS
• If some party such as congress comes into power than it will affect
positively or negatively depending on tax and norms.
• If inflation rate increases than it will affect public sector so dairy milk also
will be affected.
• The Food Safety and Standard Bill, 2005 with penal provisions requires a
review as the same gives huge powers to the Inspecting Officers to seize
food articles without authorization and may create unwanted confusion to
the detriment of the company.
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3.4.2 Economic
• Taste and preference, Cadbury has wide variety of products and 1 of them
is dairy milk. Its different varieties are fruit and nut, raisins, almond. So the
demand will be according to the taste and preferences of the variety.
• The prices of cocoa and milk, the chief ingredients used in chocolates, have
gone up by 50 per cent, while the price of sugar, another important raw
material, has come down. The overall input costs have gone up by 20 per
cent. India imports most of its cocoa requirements and the prices of cocoa
have risen globally due to unavailability of cocoa. If the prices of these
commodities keep increasing, Cadbury will be forced to increase the prices
3.4.3 Social
Cadbury India has a tradition of caring for the environment and enriching the
quality of lives of the communities we live and work in, through a variety of result-
oriented programs. Various steps taken by Cadbury India are –
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Pioneering cocoa cultivation in India.
• In October 2003, seizure of chocolates stock from Pune plant after worms
were found by customers in Dairy Milk packages; Sales dropped by 30
percent where it was expected to grow by 15 percent owing to the festive
season; Advertisements went off air for a month and half;
3.4.4 Technological
• e-Commerce has not picked up that well - not much turnover through this
route – future growth prospects of this channel
The sales of product in the market depend upon advertising which is one of the factors
that boosts the sales of the product in the market. Advertising can be in the form of print
49
advertising, banner advertising, advertising on Television, radio advertising and of
course advertisement on Internet. Over the last several years internet has emerged as a
strong and successful platform for advertising a product by using different ways and
methods to attract the attention of the customers.
There are various ways to capture the thought process, which runs in the minds of the
customers, and it is done on a regular basis through the medium of advertising. The
purpose of running an advertising campaign is to generate the interest of new customers
into the product, and to sustain the interest of regular customers in the product, so that
their mind remains focused on the brand name and image of the product.
Thus, the advertisement of the same product can be seen simultaneously at many
different places. Cadbury's advertisement can be seen during the late evening hours
when different soap opera are broadcasted. Then on switching on the laptop to check
the emails received during the day, the advertisement of Cadbury can be seen again,
but of course, this time the form of advertisement i.e. size of advertisement is small, it
looks like a teaser and the medium is different, here internet playing an important role.
At weekend while going through the shopping mall the same advertisement of Cadbury
can be seen highlighted in big posters and banners, giving more prominence to brand
name, the product name and in order to attract the customer's attention, theme of the
advertisement also been a part of the poster, which also gets highlighted. Different
brand names, different products and different ways of promoting the product.
For Example - When Sun feast biscuits were initially launched, there was an aggressive
advertisement campaign that was been done for the Sun feast biscuits by putting stalls
at different places, where maximum number of customers come regularly, like for
instance there was a stall of Sun feast biscuit at an exhibition which was been held on
a ground, where there were number of different stalls and at the end when the customers
are about to leave the exhibition there are different food stalls and refreshment stalls.
Amongst the various different stalls in the exhibition, one stall was that of Sun feast
biscuits and there were sizable number of customers, who were keen and eager to know
more about Sun feast biscuits and some were even purchasing the biscuits.
A few days later the same stall was seen at a shopping mall and now the number of
customers were more than before. The reason being advertisements of Sun feast biscuits
been shown on TV. Later on, Shah Rukh was roped in for the advertisement of Sun
feast biscuits and now Sun feast is a known to a large number of customers. Thus,
initially for any brand name it is important to gauge and know the customer's reaction,
their opinion and views, and then slowly introducing the product in the market for the
customers on a regular basis. So, advertising here also plays a major role, banners and
dangles must be attractive at the time of initial launch of the product.
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While advertising on the internet there are many customers, who visit the Cybercafe
and obviously they also come across the advertisements. So, there are different ways to
grab the attention of these customers. Many times, prominent websites like MSN,
Yahoo and other big names related to websites are roped in and then there is a different
format which is used to make sure that the customers make a note of the advertisement
and pay attention to the product details.
Like for instance there is a Contest which is been conducted wherein the customer will
have to fill in the small form which requires his Full Name, mobile number, Address
and email ID. Once these details are filled in the customer has to make sure that he has
given the correct answer to the question and then submit the form. This is where
Cybercafe customers are concerned.
Many times, during movies and during cricket matches there are online contests, which
are conducted where the customer has to select the right answer by clicking on one of
the four different options provided to him i.e. A, B, C and D and then SMS the right
answer on the given mobile number. There are mobile companies who have conducted
these kinds of contests, recently Micromax has done this contest during cricket matches.
Thus, customers are always there, each individual customer has his own purchasing
capacity, but when it comes to decision making by the customer with respect to brand
names many times advertising plays an important factor in the process of purchasing
the product. This happens at the time when the customer makes a final decision.
Many brand names re-launch their products in the market depending upon the previous
reaction received and upon the fact that what were the additional features that were
required in the product because of which sales dropped.
It is important that the customer knows about different brand names irrespective of the
fact, which product, he buys at the end of the day. This is where advertising and
promoting a product in the market plays a dominant role.
Media Advertising- Use of available media channels, meaning cinema, TV, radio, press
and the internet. In other words, the Cadbury should focus on the media through which
it reaches its primary target market-young people of age 16- 35.
During the pre-launch campaign Cadbury should not address the controversy; however,
it should make it clear that the product is not suitable for age below 15 and not advisable
for pregnant women. This way the competition will keep their mouth shut and there
will be no post launch negativism in Singapore. This will be done a month before the
launch.
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3.6 THE 5 C’s MODEL
❖ Company
Cadbury dairy milk is a brand of chocolate made by Cadbury Plc. unit of Kraft
Foods and sold in several countries around the world. It first went on sale in
1905 in the United Kingdom. The current parent is Mondelez International.
❖ Customers
The prospective customer of dairy milk ranges from 5 to 60 years of age. Since
dairy milk has a range of product suited for every member of the family. The
aim is to strengthen the brand relationship in the current consumer’s life.
The ranges of customers vary for diary milk. Whereas some buy it as an
alternative for sweet others buy it as a gift item. The consumers mostly buy the
product on impulse and are influenced by taste/flavor and then by
company/brand.
❖ Competitors
The main competitors of Dairy milk in India are Nestle, Ferrero Rocher, Amul
chocolates & unbranded chocolate. The high-end chocolates (Bourneville and
silk) also face competition also face competition from the imported Swiss
chocolates. But one of the biggest advantages the dairy milk has over its
competitors is the brand loyalty that it has got. The excellent advertising, reach
and accessibility have made it the top of mind brand in the chocolate category.
❖ Climate
The climate for the chocolate industry and dairy milk in particular seems very
attractive in a country like India. With the size of the market being so big along
with encouraging category growth the prospects look very good. Since the
product is not seasonal and the margin is also good makes the climate for the
industry even better. With new innovations coming up in terms of product and
packaging the market is still on a growth curve.
❖ Collaborators
As already said Cadbury dairy milk manages a huge range of retailers and whole
sellers who make up the collaborators. Over the years the company has partnered
with various other companies like Adam Philippines in 2001 so that diary milk
has a much wider distribution network in the Philippines.
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3.7 SOURCES OF INCOME
Shareholders Fund
Loan Funds
A Loan Fund is a source of money from which loans are made for small business
development projects. A loan is made to one person or business at a time and,
as repayments are made, funds become available for new loans to other
businesses. Hence, the money revolves from one person or business to another.
In the branded impulse market, the share of chocolate in 6.6% and Cadbury’s share in
the impulse segment is 4.8% factor like changing attitude, higher disposable income, a
large youth population, 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.
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’. Various measures are undertaken in all areas of operation to create value for
the future. 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
(Cadbury Dairy Milk) and Éclairs. The company is today the second-best
manufacturing location of Cadbury’s Schweppes in the world.
Efficient sourcing of key raw material i.e. coca through forward purchase of imports,
higher local consumption by entering long term contract with farmer and undertaking
53
efforts in expanding local coca area development. 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.
• Expand the consumer base. The company has added 8 million new consumers
in the current year and how has consumer base of 60 million although the
growth in absolute numbers is lower than targeted, the company has been able
to increase the width of its consumer base through launch of low-priced
products.
• The above are some steps being taken internally to improve future operation
and profitability. 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, lower barrier to
trade and the advent of all global players in to the country
It is of the view that size of this imported premium market is small to threaten its own
volumes or sales in fact, the company looks at the tree important as an opportunity,
where it could optimally use the global Cadbury Schweppes portfolio. The company
would be able to not only provide greater variety, 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 only concerns that the company has in this
regard is the current high level of duties, which limit the opportunity to launch value
for money products.
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CHAPTER - 4
55
4.1 PRODUCTION LAYOUT
They have implemented an SAP based Enterprise Resource Planning (ERP) system for
the Procurement function. Central procurement is divided into the following major
groups-
• Raw materials
• Energy, Fuels and Gases
• Maintenance spares
• Wearing parts, Consumable materials
• Administrative & office supplies
• Services
• Packing
The structure provides for procurement managers at regional level and plants. There is
a Separate projects head for procurement of capital equipment and purchases.
CADBURY treats its vendors as business associates. All vendors are treated with
respect and dignity. Our vendor base includes reputed manufacturers and trusted brand
names, usually the leading 3-4 vendors of their particular industry segment who are
technically and financially sound and have the intrinsic capacity to supply material of
desired quality and on time. CADDBURY prefers vendors who demonstrate good
corporate citizenship and promote sustainable development.
56
encourages fair and open competition in markets.
Product Development has always been an important activity at CADBURY, arising out
of a focus on quality and process improvement. It has been a constant partner, driving
research, innovation and evaluation.
CADBURY has effectively pledged its reputation as the market leader in the quality of
maintaining this lead calls for harnessing the resources and expertise of the company -
from applied research and production to marketing. CADBURY accordingly, all
CADBURY factories are equipped with state-of-the-art process control instrumentation
and associated quality control and testing laboratories manned by qualified personnel.
As a result of this focus on quality, CADBURY specifications exceed those set by BIS
by a wide margin. Today, all CADBURY plants have the ISO 9001 Quality Systems
certification. This demonstrates our tradition of providing reliable and consistent
quality through the application of modern technology, and justifies the preferences of a
nationwide customer base.
Production Policy
57
Group is utilized its production natured over the years to create reliable, safe
production lines. A comprehensive schedule is being implemented at all group
companies’ facilities to minimize manpower requirement and streamline
operations. ISO certification and production policies as part of group program
to guarantee unsurpassed Quality and Reliability.
Quality Policy
Quality Objective
• On time delivery
We firmly believe that, Health and safety of our employees, who are an asset to
the company, is most importance. Therefore, we are committed to bring safety
on top of mind for all employees by maintaining high standards of safety culture
with all manufacturing processes, activities and operations.
Environmental Policy
58
4.6 QUALITY MANAGEMENT
P&G has led the Indian automobile industry's anti-pollution efforts by introducing
cleaner engines. It is the first Indian company introduce vehicles with Euro I and Euro
II norms. P&G is committed to maximizing customer satisfaction and strives to achieve
the goal of excellence, by continual improvement, through ongoing going design and
development, manufacture and sale of reliable, safe, cost-effective, quality products and
services of International standards, using environmentally sustainable technologies, for
improving levels of efficiency and productivity within its premises and ancillaries.
The PCBU plant in Pune has obtained ISO 9001:2000 certificate from Bureau Veritas
Quality International-BVQI in July 2003. PCBU of P&G has received the certificate of
approval of its quality management system (QMS) from Bureau Veritas Certification
(BVC), for compliance with ISO / TS 16949:2002.
And to control the quality of its cars P&G applies various stringent measures during the
pre- manufacturing stage as well as post-manufacturing stage. During the
manufacturing stage regular’s quality Cadburyts are held by the in-house Cadburytors
in all the shops. All the process sheets, spot plans, control plan etc. are displayed near
the work place.
In the post manufacturing stage once the vehicle comes out of the assembly line it
passes through stringent testing standards such as shower test, wheel balancing etc. On
successful completion of testing, the car is ready to be dispatched after Pre-Delivery
Inspection (PDI).
P&G reaffirms its commitment to minimize the adverse impacts of its products,
operations and services on the environment. It strives to:
59
• Conserve natural resources and energy by minimizing their consumption &
wastage.
• The unit is certified with ISO 14001: 1996 for Environmental Management
System (EMS).
P&G is the first Indian Company to introduce the Balance Scorecard System in
automotive sector in India. The scorecard incorporates SQDCM (Safety, Quality,
Delivery, Cost and Morale). The implementation of the Balanced Scorecard has enabled
greater focus on different elements of operational performance.
Defining, cascading and communicating strategies across the organization have brought
about transparency and alignment. Apart from Balance scorecard half yearly review of
the employees is done on the basis of attendance, kaizen at work place etc.
Continuous efforts are made to reduce the cost of service in P&G. Rejection of input
parts received from vendors is very closely monitored in all the departments. The
vendors are penalized if rejection exceeds beyond the defined limits.
Apart from rejection of regular parts some stations are identified as CTQ (Critical to
Quality) Stage. Special care is taken of the components added on these stations. Any
negligence on these stations may lead to a customer claiming reply of the vehicle.
Value engineering team also works for searching energy efficient alternatives, methods
and eco-friendly technology, by adopting effective maintenance & work. The
consumption of electricity, water, LPG, Compressed air etc. is continuously monitored
and steps are taken to reduce the consumption of these resources.
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4.10 MATERIAL MANAGEMENT
• Purchasing
• Goods receiving
• Inventory management
• Invoice verification
Various spare parts for the machines, and other necessary equipments are ordered by
the maintenance and T & PS departments through central maintenance shop and
purchase department. Quotations are invited from the interested parties and after the
negotiations one party is finalized to procure the material.
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CHAPTER - 5
62
5.1 RESEARCH
Research comprises “creative work undertaken on a systematic basis in order to increase the
stock of knowledge, including knowledge of humans, culture and society, and the use of this
stock of knowledge to devise new applications." It is used to establish or confirm facts,
reaffirm the results of previous work, solve new or existing problems, support theorems, or
develop new theories. A research project may also be an expansion on past work in the field.
To test the validity of instruments, procedures, or experiments, research may replicate
elements of prior projects, or the project as a whole. The primary purposes of basic research
(as opposed to applied research) are documentation, discovery, interpretation, or the research
and development (R&D) of methods and systems for the advancement of human knowledge.
Approaches to research depend on epistemologies, which vary considerably both within and
between humanities and sciences. There are several forms of research: scientific, humanities,
artistic, economic, social, business, marketing, practitioner research, life, technological, etc.
• To gain familiarity with new insights into a phenomenon (i.e., formulative research
studies).
There are two main approaches to research, namely quantitative approach and qualitative
approach. The quantitative approach involves the collection of quantitative data, which are
put to rigorous quantitative analysis in a formal and rigid manner. This approach further includes
experimental, inferential, and simulation approaches to research. Meanwhile, the qualitative
approach uses the method of subjective assessment of opinions, behaviour and attitudes.
Research in such a situation is a function of the researcher’s impressions and insights. The
results generated by this type of research are either in non-quantitative form or in the form
which cannot be put to rigorous quantitative analysis. Usually, this approach uses techniques
like in depth interviews, focus group interviews, and projective techniques.
There are different types of research. The basic ones are as follows.
64
correlational and comparative methods. Meanwhile in the Analytical research, the
researcher has to use the already available facts or information, and analyse them to
make a critical evaluation of the subject.
65
4. Conceptual versus Empirical
In this type of research, the researcher first formulates a working hypothesis, and then
gathers sufficient facts to prove or disprove the stated hypothesis. He/she formulates
the experimental design, which according to him/her would manipulate the variables,
so as to obtain the desired information. This type of research is thus characterized by
the researcher’s control over the variables under study. In simple term, empirical
research is most appropriate when an attempt is made to prove that certain variables
influence the other variables in some way. Therefore, the results obtained by using the
experimental or empirical studies are considered to be the most powerful evidences
for a given hypothesis.
The knowledge of doing research inculcates the ability to evaluate and utilize the
research findings with confidence.
The knowledge of research methodology equips the researcher with the tools that
help him/her to make the observations objectively.
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5.6 RESEARCH METHODS AND RESEARCH METHODOLOGY
• Research methods are the various procedures, schemes and algorithms used in
research. All the methods used by a researcher during a research study are termed
as research methods. They are essentially planned, scientific and value-neutral. They
include theoretical procedures, experimental studies, numerical schemes, statistical
approaches, etc. Research helps us collect samples, data and find a solution to a
problem. Particularly, scientific research methods call for explanations based on
collected facts, measurements and observations and not on reasoning alone. They
accept only those explanations which can be verified by experiments.
Whenever a scientific problem is to be solved there are several important steps to follow.
The problem must be stated clearly, including any simplifying assumptions. Then develop
a mathematical statement of the problem. This process may involve use of one or more
mathematical procedures. Frequently, more advanced text books or review articles will be
needed to learn about the techniques and procedures. Next, the results have to be interpreted
to arrive at a decision. This will require experience and an understanding of the situation in
which the problem is embedded. A general set of sequential components of research is the
following:
5. Formulation of hypothesis
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6. Research design
7. Actual investigation
8. Data analysis
9. Interpretation of result
10. Report
Achieving accuracy in any research requires in depth study regarding the subject. As
the prime objective of the project is analyze the marketing strategies of Cadbury, the
research methodology adopted is basically based on primary data via which the most
recent and accurate piece of firsthand information could be collected. Secondary data
has been used to support primary data wherever needed.
• Questionnaire Method
o Physical
o Virtual (Online)
• Observation Method
The main tool used was, the questionnaire method, observation method has
been continuous with the questionnaire method, as one continuously observes
the surrounding environment one works in.
68
Sources of secondary data
Used to obtain information about Cadbury and its competitor history, current
issues, policies, procedures etc., wherever required.
• Internet
• Magazines
• Newspapers
Sampling Techniques
Data Scrutiny
The study is a cross sectional study because the data were collected at a single
point of time. For the purpose of present study, a related sample of population
was selected on the basis of convenience.
69
A sample of 50 people was taken on the basis of convenience. The actual
consumers were contacted on the basis of random sampling. Also, the indirect
competitors of Cadbury – the sweet sellers (Mithaiwalas) were survey to add
quality to the data obtained. All of the data was also obtained through online
surveys using Google Docs and Forms.
70
CHAPTER - 6
71
6.1 DATA ANALYSIS
The data collected through survey was analyzed with help of simple percentages.
Tabular and graphic methods, which included pie charts and bar graphs, were used to
analyze data. Microsoft Excel was extensively used in the preparation of the data in to
meaningful coherent and simple information graphics -
• Bar Graphs
• Pie Charts
• Line curves
Tools of Analysis
To determine the level of satisfaction for the various categories combined mean is used.
Since Likert scale is used to find out the satisfaction level the value of combined mean
shows the level of satisfaction from 1 to 5 and 2.5 is the middle point. Higher the value
of mean shows higher satisfaction level and lower the value of mean shows lower
satisfaction level.
Analysis:
72
No. of Respondents
between 5- between 10- between 20- above
10 20 30 30
12% 18%
34%
36%
Interpretation:
Analysis:
73
No. of Respondents
44%
56% male
female
Interpretation:
1 East 12%
2 West 33%
3 North 35%
4 south 20
Analysis:
74
Interpretation:
1 Amul 8%
2 Nestle 22%
3 Cadbury 70%
Analysis:
75
Interpretation:
The survey was carried out by in order to find out the reach and popularity of Cadburys
in India. The chocolate consumers were asked questions like the chocolate brand that
they normally eat, and the features that they look for in a chocolate etc.
The most of the consumers had ranked Cadburys as the best chocolate brand and a few
consider Nestle as a good chocolate brand. It was also observed that Cadburys is facing
strong competition from foreign brands.
This could be due to the fact that the respondents of our survey were mostly the well to
do population from the middle, upper-middle and upper class of people
We had 50 respondents to our survey. Most of the respondents were from the 18-25 and
26- 50 age groups. Most of the respondents spent more than 100 rupees on chocolates
in a month. Almost 70% people rated Dairy Milk the most consumed chocolate closely
followed by 5 star and Perk.
Also, the reason why Dairy Milk was preferred was because of the taste. 66% people
preferred to gift celebrations for many occasions as against 23% who prefer gifting
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foreign chocolates. Thus, I understood better the chocolate market in India. Cadbury’s
has a very good market share currently but will have to constantly revamp their
strategies in order to compete with the foreign brands.
Price 11 26 10 2 1
Quality 19 21 9 1 0
Taste 22 15 7 4 2
Available 13 22 9 4 2
Package 20 19 7 2 2
Advertisement 20 18 7 2 3
(A)
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(B)
According to the above analysis it is concluded that number of peoples out of 50 according
to quality, 19, 21, 9, 1 and 0 are highly satisfied, satisfied, neutral, dissatisfied and highly
dissatisfied respectively.
(C)
According to the above analysis it is concluded that number of peoples out of 50 according
to taste, 22, 15, 7, 4 and 2 are highly satisfied, satisfied, neutral, dissatisfied and highly
dissatisfied respectively.
(D)
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dissatisfied and highly dissatisfied respectively.
(E)
(F)
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Reasons for Consumption of
Cadbury Products
18% 22%
Self-Consumption
Gift
29%
31% For Children
Festival
Figure 6.2 - Pie chart depicting the most common consumption reasons of Cadbury
According to the above analysis it is concluded reasons for consumption of Cadbury products
for self-consumption, gift, for children and for festival are 22%, 31%, 29% and 18%
respectively.
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Figure 6.3 - Area Graph depicting the various occasions of Cadbury
purchase
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6.3 ANALYSIS OF THE QUESTIONNAIRE
1) Data-
BRANDS 1 2 3 4 TOTAL
38 8 4 0 50
Analysis-
LEADING BRAND
1 2 3 4
38
24
12
9 8
5
4
0
Nestl Cadbury
e
Interpretation-
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2) Data-
1 Cadbury 38 76%
2 nestle 12 24%
3 total 50 100%
Analysis-
PREFERENCE OF BRAND
NESTLE
24%
CADBURY
76%
Interpretation-
There are many brands available in the market. But the market leaders in India are
Cadbury and Nestle. According to survey-
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3) Data-
Analysis-
CADBURY
21%
DAIRY MILK 5
39% STAR PERK
11% CELEBRATION
TEMPTATION
13%
16%
Interpretation-
From the above analysis of given sample of 38 respondents who eat Cadbury chocolates
it is concluded that –
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4) Data-
Analysis-
NESTLE
CHOCOLATE
KITKAT
MUNCH
Interpretation-
From the above analysis of given sample of 12 respondents who eat Nestle chocolates
it is concluded that –
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- 16% of the respondents have preferred Milk Chocolate more.
5) Data-
Analysis-
25
11
10
Interpretation-
86
• 11 of the respondents eat chocolates when they are happy.
• 10 of the respondents eat chocolates only on special occasions.
• 4 of the respondents eat chocolates when they are sad and depressed.
6) Data-
Analysis-
SOURCES OF CHOCOLATE
1
8
1
5
1
0
7
Interpretation-
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• 7 of the respondents eat buy chocolates from super market.
7) Data-
Analysis-
FORM OF CHOCOLATE
Interpretation-
Every person has their own taste and preferences towards the eatable product in chocolates.
There are four varieties available in the market among this 38% of the consumers like crunchy
chocolates, 34% of the consumers like chew chocolates, 22%of the consumers like Nutties
chocolates & only 6% of the consumers like hard chocolates.
8) Data-
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SR. NO. OPTIONS NO. OF %
RESPONDENTS
1 Small 13 26%
2 Big 19 38%
3 Family pack 18 36%
Total 50 100%
Analysis-
SIZE OF PACK
SMALL
36%
BIG
38%
Interpretation-
The chocolate is available in the market in different packs like small, big and family pack.
According to the survey, 38% of the respondents are buying big pack, 36% of the
respondents are buying family pack and 26% of the respondents are buying small pack of
chocolate. So, we came to know that the consumption of big pack is having boom in the
market compare to other pack.
89
9) Data-
Analysis:
Interpretation-
90
10) Data-
Analysis-
Interpretation-
91
CHAPTER - 7
92
7.1 FINDINGS
• The retailers on their outlets do not properly place the glow signboard and the
company or distributors do not do the distribution of the boards properly.
• Sales promotion schemes are important to influence the consumer. The retailer
was dissatisfied by the promotional schemes of the company. The distributors
were not distributing all the schemes properly to the retailer.
• The competitor’s sales promotion schemes were not much effective but schemes
were properly distributed to the retailers.
• The company has strong distribution channel but the retailers were not satisfied
by the services of the distributors.
• Number of root vehicle is very less as compare to the size of the market.
After going extensively through resources, news and other literature, I found the
following reasons as the fundamental pillars for the robust growth and expansion of
Cadbury in its efforts to gain larger share of the market pie.
The Cadbury India team is all-Indian and has a deep understanding of local market
dynamics. The business is set in a way that highlights localization across all facets –
driving the belief that the only way to succeed in India is by developing localized
business models. For example, the company tailored the chocolate formula in India to
prevent melting in the country’s open-air high frequency store environment.
Local management has set up systems to test and develop products from the ground up
with specialized interlinked cells that execute innovation and market testing hand- in-
hand. Cadbury India is known as a key product innovator. Besides Dairy Milk, the
93
entire Cadbury product portfolio in India has been developed locally to suit Indian
consumer tastes. Packaging, marketing and distribution have all been tailored to local
market conditions.
Royalty Structure
Royalty to Cadbury Schweppes is around 1 per cent of the turnover. But with that, the
company gets unlimited access to latest technology, new products and so on. They can
also introduce new products from the parent, if it is suitable for Indian market.
Cadbury has reduced its dependence on cocoa, thus lowering its exposure to volatile
raw material prices as well as cutting costs. It appears that they have subtly altered the
Recipe by using less of costlier cocoa and more of milk and sugar. Cadbury's launch of
Perk has also contributed significantly in reducing the proportion of cocoa in the overall
raw material mix.
Brand Building
Since its inception, Cadbury in India has stayed ahead thanks to their constant
marketing initiatives, that have at all points in time understood the needs of and
opportunities in a changing nation but Nestle had stood firm in second position resulting
from their responsibilities and providing quality products. Amul an Indian company has
been able to create brand quality and thus selling their product through their name.
The '60s was a decade which saw the launch of brands that are etched in the hearts of
generations of Indians - Tiffins, Nut Butterscotch, Caramels, Crackle, 5 Star and Gems.
It was a strategy that introduced consumers to a variety of tastes and product forms
leading to a rapid increase in chocolate consumption.
Cadbury's Eclairs was launched in 1972, at the then princely sum of 0.25p and was an
instant hit. It continues to be one of the biggest brands in the Cadbury portfolio and
offers the lowest price point at which consumers can experience the real taste of
chocolate. But as compared to other companies the price is very high because of lack of
competition.
In the years that followed, Cadbury invested in technology and made an impact through
94
innovative packaging. This decade experienced a continuous growth in volumes as
Cadbury launched a flurry of brands with different pack sizes, at various price points.
The now ubiquitous Sheet Metal Dispenser seen on cash counters of thousands of shops
for dispensing chocolates was an innovation that helped brand the color purple in the
minds of the Indian consumer.
In the 90's Cadbury realized both the scope and the need to expand the market. Hitherto
perceived only as a children's product, Cadbury 'universalized' the chocolate market.
The multi-award-winning advertising campaign - 'The Real Taste of Life' - was
launched, capturing the childlike spontaneity in every adult. Moulded chocolate and
éclairs also showed satisfactory growth. This has also helped in improving the
infrastructure and distribution reach of the company in chocolate and confectionery
segment.
Cadbury 5 Star with its “Energizing Bar” campaign targeted the youth, offering them a
mind and body charge. While pre-empting competition, Cadbury Perk - the light
chocolate snack - pushed chocolates into the wider area of snacking by promising
'Thodi Si Pet Pooja Kabhi Bhi Kahin Bhi' (anytime, anywhere) and has introduced new
flavors like ‘Mint Hint’, ‘Mango Tango’, Very Strawberry’. It has also introduced
various new chocolates like Gollum and Fruits in recent years.
Constant diversification
Faced with rapidly changing markets and increased competition, Cadbury launched
Truffle to hit the high ground of great tasting chocolate. This was followed by Picnic in
1998, which with its unique, multi-ingredient construct promises to take chocolates
straight into the realm of snacks. With the introduction of Gollum and Fruits Cadbury
has taken the market by surprise.
Commitment of expansion
With the launch of Trebor Googly, the tangy, fizzy candy, Cadbury took the market by
surprise and marked the entry of Trebor into the fast-growing Indian sugar
confectionery market. The extension of Googly to a Mint flavor reinforces Cadbury's
commitment to establish the Trebor name as a strong player in the value-added sugar
confectionery market.
Repositioning
Cadburys has been repositioning its products for children to adults and for celebrative
occasions. A repositioning campaign was arranged for dairy milk that showed adults
doing unconventional things (like a lady breaking into a jig in the middle of the
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overflowing Cricket (stadium) driving home the message that adults could enjoy
chocolate as well.
Information technology
7.2 SUGGESTIONS
Medias such as the internet (Facebook, Google+ etc.) and the radio enable large
amount of cheap advertisement. Internet is a good place to sell goods, even
confectionary ones. Provides a new consumer group with access to Cadbury and
allows even larger sales due to a larger overall consumer group.
Many new players are trying to enter Indian market so it should formulate new
strategies so as not to lose market share.
New channels such as gifting, child connectivity and value for money offering
to be the key growth drives.
Grow volume sales at least 20% p.a. over the next years.
One new major product from International portfolio should be launch in India
every year.
FDI will bring in many new products and competitors so Cadbury will have to
maintain their strong market distribution channel so as not to lose market share.
They need to maintain high standards and should be careful that their product
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remains sterile. And is not affected by insects.
They should bring many more flavors of Dairy Milk with focus on Health-
conscious market segment i.e. low sugar chocolate bars.
7.3 CONCLUSION
The Indian Chocolate Industry is a unique mix with extreme consumption patterns,
attitudes, beliefs, income level and spending. Understanding the consumer demands and
maintaining the quality will be essential. Pricing is the key for Cadbury’s to make their
product reach to every consumer house. Right pricing will make or break the product
Success. There’s also an immense scope for growth of chocolate industry in India,
geographically as well as in the product offering. So, we think that bringing online sales
(through Facebook) & increasing the institutional sales (in unique way) would bring
prosperity and increase the sales of Cadbury’s as a whole again resulting in the goodwill
of the company.
Cadbury has indeed emerged as the Market Leader in the Chocolate industry. And as a
leader embraces the characteristic of group preference over oneself, Cadbury has
practically applied this principle. The marketing strategies of Cadbury has not only
increased the share of Cadbury in the Market pie, but also it has increased the very shape
of the pie itself.
Cadbury hit the consumer at the place which is the key aspect of a consumer – his mind.
Rather than employing conventional or short cut sales promotion strategies, Cadbury
played the long run by aiming at the consumer mindset rather than the consumer wallets.
And indeed, it paid off.
This is a very clear-cut picture where a team of hard-core professionals are using every
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opportunity directly touching the emotions of the masses but spending minimum money
possible on advertisement. It is a sort of monopolistic area where by spending very low,
using easiest and economical method, products are developed and sold, giving, the
customers no chance or alternative.
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BIBLIOGRAPHY
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QUESTIONNAIRE
9) How much are you satisfied with the following factors in your preferred brand of
chocolate (Cadbury)?
10) How much are you satisfied with the following factors in your preferred brand of
chocolate (Nestle)?
Flavour/taste
Price
Quality
Packaging
Shape
Quantity
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