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“MARKETING STRATEGIES OF CADBURY”

SUBMITTED IN PARTIAL FULFILLMENT FOR THE


AWARD OF THE DEGREE OF BACHELORS OF
COMMERCE: 2021-22

UNDER THE GUIDANCE OF:


MS. TARANPREET KAUR
ASST. PROFESSOR, MAIMS
SUBMITTED BY:
KHUSHIN GUPTA
ROLL NO: 0241478820(BCOM 2A)

MAHARAJA AGRASEN INSTITUTE OF


MANAGEMENT STUDIES
Affiliated of Guru Gobind Singh Indraprastha University,
Delhi PSP Area, Plot No. 1, Sector 22, Rohini Delhi 110086
Table of CONTENTS
Student declaration.................................................................i
Certificate from Guide.............................................................ii
Acknowledgement..................................................................iii
Executive Summary...............................................................iv

CHAPTER -1 INTRODUCTION
1.1 Purpose of the study
1.2 Research Objectives of the study
1.3 Research Methodology of the study
1.3.1 Research Design
1.3.2 Data Collection
1.3.3 Limitation
CHAPTER -2
About the Organization / Company Profile
CHAPTER -3
Findings and Analysis
CHAPTER -4
Suggestions
CHAPTER -5
Conclusion and Limitation
Bibliography
Annexures
STUDENT UNDERTAKING

This is to certify that I have completed the Project titled”


MARKETING STRATEGIES OF CADBURY” under the guidance
of “MS. TARANPREET KAUR” in partial fulfilment of the
requirement for the award of degree of Bachelor of Commerce at
Maharaja Agrasen Institute of Management Studies, Delhi. This is an
original piece of work & I have not submitted it earlier elsewhere.

KHUSHIN GUPTA
(Enrolment number - 02414788820)
CERTIFICATE

This is to certify that the project titled “MARKETING STRATEGIES


OF CADBURY” is an academic work done by “KHUSHIN GUPTA”
submitted in the partial fulfilment of the requirement for the award of
the degree of Bachelor of Commerce from Maharaja Agrasen Institute
of Management Studies, Delhi, under my guidance & direction. To
the best of my knowledge and belief the data & information presented
by him/her in the project has not been submitted earlier.

MS. TARANPREET KAUR


(ASSISTANT PROFESSOR, MAIMS)
ACKNOWLEDGEMET

It was a great opportunity for me to work on the project of my interest as it provided


me with some detail information about product merchandising. I am extremely grateful
to all those who have shared their expertise and knowledge with me and without whom
the completion of this project would have been virtually impossible.

I would like to thanks MS. TARANPREET KAUR (ASST PROF., MAIMS)


my research guide for her valuable suggestions and guidance. I also owe a deep
sense of gratitude to other faculty members for their continuous encouragement.

Despite all efforts, I have no doubt that errors and obscurities remain that seen
to afflict all research project and for which I am culpable.
At last I would like to thank all the respondents met in the preparation, who gave their
valuable time to provide us required information and their honest support to complete
our project in time.

THANKYOU

KHUSHIN GUPTA
Enrolment no.: 02414788820
SUMMARY

This project is all about the customer satisfaction towards Cadbury. In this
project I have discussed about the industry overview of the Cadbury, problems
of the company, competitor’s information, company profile. In this project we
have also discussed about company’s s.w.o.t analysis and their trends. We have
done research design also and make questionnaires and found some positive and
negative aspects of the organization.
INTRODUCTION
CHAPTER-1
Marketing is the process of communicating the value of a product or service to customers, for
the purpose of selling that product or service.

Marketing can be looked at as an organizational function and a set of processes for creating,
delivering and communicating value to customers, and customer relationship management
that also benefits the organization. Marketing is the science of choosing target markets
through market analysis and market segmentation, as well as understanding consumer
behaviour and providing superior customer value. From a societal point of view, marketing is
the link between a society's material requirements and its economic patterns of response.
Marketing satisfies these needs and wants through exchange processes and building long term
relationships.

1.1PURPOSE OF STUDY

Marketing has to play an important role for the well-being of a firm. This is evident from the
following words of Peter F. Drucker:

“Marketing is distinguishing, the unique function of the business. A business is set apart
from all other human organization by the fact that it markets a product or a service. Neither
Church, nor Army, nor State does that. Any organization that fulfil through marketing a
product or a service, is a business. Any organization in which marketing is absent or
incidental, is not a business and should never be run as if it were one.”

Marketing bridges the gap between the producer and consumer. Marketing is the main reason
of the business existence. All business operations depend on marketing. The success of
business depends largely on the effectiveness of the marketing strategies. Marketing is
essential for the very purpose of the business as can be judged from the following lines:

“Business aims at profit. To realise profit, a sale has to be made. To make the sale, a
customer has to be created. To create a customer, he must be satisfied. To satisfy a customer
his needs have to be met. To meet these needs, marketing is essential.”
Marketing is said to be the eyes and ears of the business because it keeps the business in close
contact with its environment and informs of event that can influence its operations.

1.2. RESEARCH OBJECTIVES

 Determine customer preferences for product packaging that maximize sales

 Determine the features in the product that attract maximum customer attention

 Asses customers loyalty level to the product

 Measure customers satisfaction level towards the product or service

 Estimate the optimal price to maximize product or company revenues

 Determine the ideal price that the customer is willing to pay for the product

 To study how Brand plays an important role for growth in today’s competitive
business environment.

 To conduct a SWOT analysis of Cadbury India.

 To compare the strategies of Cadbury India vis-à-vis its competitors.

 To analyse the impact of Cadbury’s marketing techniques on the market.

1.3. RESEARCH METHODOLOGY

Research methodologyy is a way to systematically solve the research problem. It may be


understood as a science of studying how research is done scientifically. In this researcher
pursue various steps that are generally adopted by a researcher in studying his research
problem along with the logic behind them. It is necessary to know not only the research
methods and techniques but also the methodologyy. Research method part of research
methodologyy, research methodology starts with title of the research problem and researcher
set the objectives of the research, which helpful for society, and other researcher for further
research. After objectives need to review of literatures means idea generation and inspired to
do the research. Research methodologyy included sample design.

1.3.1. RESEARCH DESIGN

The research is descriptive in nature. Descriptive ethics is a form of empiricalresearch into


the attitudes of individuals or groups of people. Those working on descriptive ethics aim to
uncover people's beliefs about such things as values, which actions are right and wrong, and
which characteristics of moral agents are virtuous. Research into descriptive ethics may also
investigate people's ethical ideals or what actions societiesreward or punish in law or politics.
What ought to be noted is that culture is generational and not static. Therefore a new
generation will come with its own set of morals and that qualifies to be their ethics.
Descriptive ethics will hence try to oversee whether ethics still holds its place.

Because descriptive ethics involves empirical investigation, it is a field that is usually


investigated by those working in the fields of evolutionary biology, psychology, sociology or
anthropology. Information that comes from descriptive ethics is, however, also used in
philosophicalarguments.

Value theory can be either normative or descriptive but is usually descriptive.

1.3.2. DATA COLLECTION

SAMPLING DESIGN

 Mode: Google Form

 Tool: Questionnaire

 Population: Random people

 Sample size: 50

 Study area: Delhi, NCR


The data can be collected by sources. These data are of two types:

1. PRIMARY DATA

2. SECONDARY DATA

Primary Data (Raw data) is a term for data collected from a source. Raw data has not been
subjected to processing or any other manipulation. Raw data is a relative term. Raw data can
be input to a computer program or used in manual procedures such as analysing statistics
from a survey. The term can refer to the binary data on electronic storage devices such as
hard disk drives (also referred to as low-level data).

Secondary data, is data collected by someone other than the user. Common sources of
secondary data for social science include censuses, organisational records and data collected
through qualitative methodologies or qualitative research. Primary data, by contrast, are
collected by the investigator conducting the researchSecondary dataanalysis saves time that
would otherwise be spent collecting data and, particularly in the case of quantitative data,
provides larger and higher-quality databases that would be unfeasible for any individual
researcher to collect on their own. In addition, analysts of social and economic change
consider secondary data essential, since it is impossible to conduct a new surveythat can
adequately capture past change and/or developments.

I have collected secondary data from various sources i.e. managerial books, e-books, business
magazines, and from various websites.

1.3.3. LIMITATIONS

Every study has some limitations. The problems faced during completing this project were as
follow:
1. Time: The time for completing this project was limited. I was bound to a certain time
limit for completing this project.

2. Data: The data available for this project is only secondary. Primary data is not
available hence the data is collected from secondary sources like books and internet.

3. Area: The geographical area is less hence I could only collect data from secondary
sources and can only research on the boundary limits.
COMPANY PROFILE
CHAPTER-2
2.1 Introduction of Cadbury

The Cadbury’s Inc. has taken the opportunity to offer us a broader view of chocolate
category. The Cadbury India’s no.1 Chocolate is able to share with their market insights
based upon unparalleled breath of chocolate experience.

Cadbury has grown from strength to strength with new technologies being introduced to
make the Cadbury confectionary business, one of the most efficient in the world. The merge
in 1969 with Schweppes and the subsequent development of the business have led to Cadbury
Schweppes taking the lead in both, the confectionary and soft drink market intech UK and
becoming a major force in the international market. Cadbury Schweppes today manufactures
product in 60 countries and a trade in staggering 120. The Cadbury story is a fascinating story
of a family business that grew in one of the biggest, most loved chocolate brand in the world.
A story that you will remember as the story of “The taste of life”.

Cadbury is a British multinational confectionery company wholly owned by American


company Mondelez International(originally Kraft Foods) since 2010. It is the second-largest
confectionery brand in the world after Wrigley's. Cadbury is internationally headquartered
in Uxbridge, Middlesex and operates in more than fifty countries worldwide. It is famous for
its Dairy Milk chocolate, the Crème Egg and Roses selection box, and many other confectionery
products. One of the best-known British brands, in 2017 The Daily Telegraph named Cadbury
among Britain's most successful exports.

Cadbury was established in Birmingham, England in 1824, by John Cadbury who sold tea,
coffee and drinking chocolate. Cadbury developed the business with his brother Benjamin,
followed by his sons Richard and George. 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. Cadbury,
alongside Rowntree's and Fry, were the big three British confectionery manufacturers
throughout much of the nineteenth and twentieth centuries.

Cadbury was granted its first Royal Warrant from Queen Victoria in 1854. It has been a holder
of a Royal Warrant from Elizabeth II since 1955. Cadbury merged with J. S. Fry & Sons in
1919,and Schweppes in 1969. Cadbury was a constant constituent of the FTSE 100 on
the London Stock Exchange from the index's 1984 inception until the company was bought by
Kraft Foods in 2016.

2.2 OBJECTIVES

Marketing objectives

Cadbury Schweppes is a marketing focused company. Its success relies on satisfying the
needs of its consumers. It is able to do this by continually listening to consumers and learning
about their changing requirements. In response to these requirements, Cadbury Schweppes
seeks to create new products, build on existing core brands and find new ways to add value to
existing products. A key marketing objective for large business organisations is to focus on
the most profitable opportunities in global markets in their particular product category. This
can take the form of value or volume or a mix of both and can be seen in all forms of mass
consumption products from shampoo and toothpaste, to baked beans, confectionery and
beverages. The logic is simple - by gaining the visibility, profitability and volume in the
global market, a business is best placed to provide its consumers with quality products and
the best value for money.

In this respect Cadbury Schweppes is representative of leading-edge international business


practice focusing on the two growth markets of Beverages and Confectionery, which between
1992 and 1997 increased in volume by 25 per cent and 20 per cent respectively. Another
marketing objective is to increase the volume of sales and market share by a process of
innovation - in products, packaging and route to market. Innovation is the process of
developing better solutions and methods of conducting business. Having a culture of
innovation helps companies stay ahead of the competition. Innovative business organisations
place great emphasis on being able to take advantage of new opportunities - identifying
changes in the business environment and, after evaluating market research information,
allocating resources to capitalize on these opportunities. An organisation which is in touch
with the changing business environment and its consumers' changing perceptions, interests
and needs will be able to create innovative products which best satisfy consumer
requirements. The development of Cadbury's Yowie in Australia exemplifies these marketing
objectives and provides a good lesson in how to use Cause Related Marketing effectively.
Yowie is an exceptionally successful product which has won a large share of the children's
confectionery market in Australia. It was voted best new confectionery product in the world
in 1997 by the world's grocery press. It is a value-for-money, exciting and entertaining
chocolate product which is related to an important cause - the environment. In this way, the
Yowie typifies the innovation process of adding more value to a product in a socially
desirable way. This type of Cause Related Marketing is central to Cadbury's marketing
strategies –to give consumers the benefits that they want.
Many people in industry believe that if the community in which the business operates is not
healthy, then the business will suffer. It follows then that business has a responsibility to
contribute to the health and prosperity of the community. There are many ways in which
companies can help, from seconding personnel to community projects to straightforward
sponsorship. At one extreme is the corporate donation, i.e. pure charity, and at the other
extreme is the example examined in this case study - Cause Related Marketing - where
businesses and good causes work together for mutual benefit. Cadbury Schweppes is an
organisation which has been at the leading edge of community involvement for some time. It
has been involved in partnership activities with Save the Children and in seconding managers
to work with other charities and community groups. Cadbury World educational experience
(a fun themed tour outlining the history, operations and achievements of the company over
the years) exemplifies Cadbury's commitment to education.

As part of its community involvement, Cadbury Schweppes spearheaded 'Business in the


Community' Cause Related Marketing campaign. The Company's Chairman, Sir Dominic
Cadbury, was the first Chairman of the 'Business in the Community' working party, set up to
investigate and promote Cause Related Marketing. Business in the Community was
established in this country in 1982 to inspire businesses to increase their contribution to social
and economic regeneration by making corporate responsibility an essential part of business
life. It is a charity with a membership of over 400 companies, including over 75 of the FTSE
100. Members are encouraged to use their skills, expertise, products and profits to promote
the economic and social regeneration of communities.

'Business in the Community' has carried out detailed research into current perceptions of
Cause Related Marketing to provide the market with evidence of the potential this marketing
approach offers both businesses and charitable causes. To develop differentiated product,
while exploiting a smart variety, to achieve their profitable growth in confectionery and
beverages. Another objective is to further take advantage of technology in order to increase
growth, quality and productivity. By Working together with global supply chain Cadbury
have a competitive advantage while attaining their ethical and cost-reduction goals. By
competing on quality this gives Cadburys a USP that allows them to lay an emphasis on total
consumer and customer perceived value. As Cadbury have a highly motivated Global Science
& Technology Team that is admired internally and externally for delivering superior results.
Our core Behaviours: We promote partnership, networking and cooperation. We are leaders
and business partners. We are champions of our products, consistently finding ways to
achieve and maintain competitive superiority. We live our Values and Principles. 

The main aim of is "To be the worlds, biggest and best confectionery company" Their core
strategies/objectives to achieve these aims are as follows:

 To develop differentiated product, while exploiting a smart variety, to achieve their profitable
growth in confectionery and beverages.
 Another objective is to further take advantage of technology in order to increase growth,
quality and productivity.
By Working together with global supply chain Cadbury have a competitive advantage while attaining
their ethical and cost-reduction goals. By competing on quality this gives Cadburys a USP that allows
them to lay an emphasis on total consumer and customer perceived value. As Cadbury have a highly
motivated Global Science & Technology Team that is admired internally and externally for delivering
superior results. Our core Behaviours: We promote partnership, networking and cooperation. We are
leaders and business partners.  We are champions of our products, consistently finding ways to
achieve and maintain competitive superiority. We live our Values and Principles.

2.3 HISTORY

Cadbury is guided by the philosophy of the Religious Society of Friends (Quakers).


Traditionally, Quakers have been known for developing practical programs to meet each
individual’s needs. This led Quakers in New Jersey and Pennsylvania to develop more than
20 programs dedicated to aging, beginning in the early 19th century.

Our very name, Cadbury comes from a “Friend,” Henry C. Cadbury who was a peace and
civil rights activist, biblical scholar and leader in the founding of the American Friends
Service Committee (AFSC). Mr. Cadbury, the grand-nephew of the founder of Cadbury
Chocolate, received the 1947 Nobel Peace Prize on behalf of AFSC. Today we foster the
same innovative spirit in providing a wide range of senior lifestyles.

Quakers express a deep concern for the dignity and spiritual worth of each person. Some 35
years ago a group of forward thinking Quakers wanted to provide these services to older
adults in the Cherry Hill, NJ area and purchased the Cherry Hill Lodge, in what was then a
rural area. The “lodge” was transformed into a thriving continuing care retirement
community which today sits in a desirable location, minutes from Centre City Philadelphia.

Over the years Cadbury has grown to include a second continuing care community in Lewes,
DE as well as establishing the first “continuing care community without walls” in New Jersey
known as Cadbury at Home. The at Home program has expanded and is now available in
Delaware.

Based on the success of the award winning at Home program, our forward thinking Executive
Leadership, taking its cue from our Quaker founders, developed a professional consulting
business – Cadbury Consulting – which brings our expertise nationwide to other long-term
care organizations seeking to institute this popular program.

We’re proud that Henry Cadbury’s legacy of treating individuals with dignity, making
decisions for the greater good by consensus and being innovative is still alive and well at
Cadbury today.

2.4 ABOUT CADBURY

THE LEGEND CALLED CADBURY

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.

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 centre 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 favourite module chocolate bar.

1969- Cadbury merged with drinks company Schweppes to form Cadbury Schweppes in


1969. Head of Schweppes, Lord Watkinson, became chairman, and Adrian Cadbury became
deputy chairman and managing director. The benefits of the merger were to prove elusive.

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.
2.5 Company Profile

Cadbury India is a food product company with interests in Chocolate Confectionery, Milk
Food Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate Confectionery
business with a market share of over 70%. Some of the key brands of Cadbury are Cadbury
Dairy Milk, 5 Star, Perk, Eclairs, Celebrations, Temptations, and Gems. In Milk Food drinks
segment, Cadbury's main product - Bournvita is the leading Malted Food Drink in the
country. 

Cadbury is the world's largest confectionery company and its origins can be traced back to
1783 when Jacob Schweppe perfected his process for manufacturing carbonated mineral
water in Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoa
and chocolate. Cadbury and Schweppe merged in 1969 to form Cadbury Schweppes plc.
Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to
the dark chocolate recipe of cocoa mass, cocoa butter and sugar. In 1905, Cadbury's top
selling brand, Cadbury Dairy Milk, was launched. By 1913 Dairy Milk had become
Cadbury's bestselling line and in the mid-twenties Cadbury's Dairy Milk gained its status as
the brand leader. Cadbury India began its operations in 1948 by importing chocolates and
then re-packing them before distribution in the Indian market. Today, Cadbury 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, Kolkota
and Chennai). Its corporate office is in Mumbai. Worldwide, Cadbury employs 60,000
people.

Major Achievements of Cadbury


 Worlds No 1 Confectionery company
 World's No 2 Gums company.
 World's No 3 beverage company.

Cadbury Dairy Milk &Bournvita have been declared a "Consumer Super brand" for 2006-7
by Super brands India.

Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most respected
companies by sector conducted by Business World magazine in 2007.
2.6 COMPETITORS

Cadbury is one of the most iconic confectionery brands in the world. The company, known
for its Dairy Milk Bar, is now a part of Mondelez International. Kraft acquired Cadbury for
$18.9 billion, combining two strong food companies before spinning off some of the
international brands as Mondelez. Together with other Mondelez brands, Cadbury is part of
the company that has the leading global market share for chocolates. Mondelez International
had strong market share positions in 2014. Its number one overall global market position was
supported by strong number one market share in the Asia-Pacific region, Middle East/Africa
region and European region. In Latin America, Mondelez ranked second for 2014. The
company's lowest market share came in North America, coming in at number five. The
company faces strong competition from many companies in North America and around the
world.

1. Mars/Wrigley’s

Mars is a recognizable name, but as a private company, it hasn't been one investors can get
behind. In 2014, Mars had a market share of 29.5% in the United States for the chocolate
market. Some of its best-known brands are M&M's, Snickers, Starburst, Twix and Skittles.

Mars was the seventh-largest private company in America in 2014, with sales of $33 billion.
The company competes in six segments: chocolate, pet care, food, Wrigley’s (gum), drinks
and symbioscience.

Along with competing against Mars for the chocolate market share, Cadbury now competes
against the giant for share in the global gum market thanks to Mars' acquisition of Wrigley's
in 2008. Mars' $23 billion acquisition gave it control of brands such as Extra, Orbit and
Eclipse, which helped produce sales of $5.4 billion prior to the sale. Cadbury has gum brands
that include Dentyne, Stride and Trident. Both companies have strong market share in a gum
market that has seen sales decline.

2.Hershey's
In 2014, Hershey's had a market share of 44% in the U.S. for the chocolate industry. The
company has many well-known brands in the U.S., including Hershey's, Reese's, Jolly
Rancher and Twizzlers. Hershey's still gets more than 80% of its annual revenue from the
North America market.

The case of Hershey's and Cadbury being rivals took a big turn due to a licensing agreement
set back in 1988. In 1988, Hershey’s paid $300 million for the rights to Cadbury’s U.S.
operations. Cadbury agreed; at the time, it saw no chance to compete against Hershey's and
Mars, which controlled a combined 70% of the market.

Hershey's caused an uproar when it sued several IMPORTERS of Cadbury products from the
U.S. Hershey's uses a different recipe than the British chocolatier, and many former British
residents want the authentic version. Cadbury's chocolate in the United Kingdom lists milk as
the number one ingredient, while the American version made by Hershey’s has sugar as the
number one ingredient.

Hershey's is in a unique position, as it is both a competitor and a distributor of Cadbury


products. The long-time rights deal led many to believe that Cadbury and Hershey's would
eventually merge, but that has not been the case. Nestle and Cadbury did at one time attempt
a joint bid for Hershey's, but it ultimately fell through.

3. Nestle

Nestle is the largest food company in the world, covering many different subsectors of the
market. The company's chocolate market is one of its smallest, but it was good enough for a
5.8% market share in the U.S. Nestle has grown through many acquisitions that have given it
control of brands that include Kit Kat, Smarties and Gerber baby food.
Nestlé’s confectionery segment was its sixth-largest in 2014. With sales of $9.7 billion
globally, nestle held the number three market share position. Sales of the company's
chocolate products totalled $7 billion, including $4 billion from the Americas.

Similar to its deal with Cadbury, Hershey's also licenses several brands from Nestle for U.S.
distribution rights. This includes Kit Kat and Rolo, two Nestle brands.
FINDINGS AND
ANALYSIS
CHAPTER-3
3.1 SWOT ANALYSIS

Cadbury is one of the topmost fmcg brands in India and hence there is no doubt that the
strengths and opportunities of Cadbury are far more than its weaknesses and threats. Let us
delve deeper in the SWOT of Cadbury.

Strengths in the SWOT analysis of Cadbury

World leader – Cadbury is the world’s leader in chocolates. Known to have the best
manufacturing and a wide distribution channel, Cadbury has a presence in 200 or more
countries.

Powerhouse brands and Products – Cadbury has many strong brands in its product
portfolio such as dairy milk, Bournvita, Oreo, five star and others. The product are high
quality products and some of them are cash cows for Cadbury.

Brand name, brand equity and Brand loyalty – Cadbury products are blessed with a
fantastic brand loyalty. Due to its marketing and strong branding over the years, the brand
equity of Cadbury is also high and hence Cadbury is comfortable charging a premium for its
product because of the high brand equity. Finally, some brand names within the Cadbury
family are known worldwide and are desired by many.

Positioning as gift – The smartest tactic that Cadbury has done over the years with products
like dairy milk and celebrations is that these chocolates are positioned for gifting. In fact, the
recent bournville, has a complete focus on the gifting position. Due to this smart strategy
Cadbury has safely differentiated itself from majority of its competitors.

Promotions – With an amazing tag line of “kuchmeethahojaye” along with


fantastic ATL and BTL activities, Cadbury has one of the strongest promotions in the fmcg
industry. This further imparts strength to Cadbury because it provides excellent brand recall.

Indian connect – Cadbury is one of the few brands which connects so well with the Indian
diaspora. For Indians, family, friends and love are all important parts of their life. And
Cadbury has always focused on emotional marketing to connect with the Indian audience.

Placement and distribution – Cadbury has a superb distribution strategy in place and like all
FMCG companies, it uses the strategy of breaking the bulk. Distributing to 200 countries
with a variety of more than 40 variants is not a small feat. And Cadbury has been achieving
the same for the past many years. It is known to have one of the best FMCG distribution
channels in India.

Weaknesses in the SWOT analysis of Cadbury

As mentioned previously, a brand like Cadbury is expected to have many strengths and
few weaknesses, and the same is the case. Cadbury’s weakness is its rural distribution
considering India has such a wide rural diaspora which can be covered.

At the same time, A few cases here and there have happened based on the quality of the
product where cockroaches or other rodents were found in the chocolate. It is inexcusable for
a brand like Cadbury to show such ignorance because such infected chocolates should not
leave quality control at all. Thus quality control needs to be strengthened.

Opportunities in the SWOT analysis of Cadbury

Rural markets – What is a weakness can become an opportunity. Penetrating rural markets
and distribution in rural markets can be a large opportunity for Cadbury. It is present in
foreign countries and a rural presence is much needed for Cadbury which will boost the
brands presence and turnover.

New Tastes – Indian consumers have a sweet tooth and they frequently like to eat small
chocolates as well as chocolate bars. On top of it, there are various flavours which consumers
like. Thus, new tastes and new flavours are an opportunity which Cadbury can generate
regularly.

Threats in the SWOT analysis of Cadbury

Cost and price increase – With an increase in fuel cost as well as cost of transportation,
distribution cost has gone up. At the same time, the cost of procurement and manufacturing is
high as well. Thus, over the years, the constant increase in costing and thereby pricing of the
product is a threat to Cadbury as it creates a gap for other companies to enter.

Health consciousness on the rise – Health consciousness is on the rise amongst the Indian
population. Many people prefer drinking health juices as well as fruits rather than having
chocolates. Every week you will see articles on newspapers as well as on blogs which advice
against eating chocolate and propagate the benefits of staying healthy. At the same time,
many parents have stopped giving chocolates to their kids looking at the adverse effects.

Decreasing importance of festivals – Cadbury has spent years to get the position of a gift on
festivals and occasions. What happens when the importance of these festivals drops? The
buying of chocolates also drops.

Rising demand of people, growing purchasing power –  Nowadays, if you gift a chocolate
to children, they are likely to demand a toy car, a bicycle or for a young adult, a computer.
Thus, with a rise in purchasing power, the demands of gifts also have gone up in value and
just a chocolate will not suffice. This is also a threat for Cadbury.

Thus, this is the complete SWOT analysis of Cadbury. If you have a suggestion for any
further strengths, weaknesses, opportunities or threats for the Cadbury brand, then please
suggest the same in the comments column below.

3.2 DATA REPRESNTATION

R ank the sub-br ands of chocolates according to


your preference
Rank the sub-brands of chocolates according to your preference

TEMPTATION

CELEBRATIONS

PERK

5 STAR

DAIRY MILK

0 2 4 6 8 10 12 14 16
Which chocolate do you prefer

6%
12% Cadbury
Amul
Nestle
Other
16%

66%

Which factor you consider while purchasing chocolate

TASTE 22

ENDORSEMENT 8

QUALITY 14

PRICE 6

0 5 10 15 20 25

Which factor you consider while purchasing chocolate


What type of chocolate do you prefer
18
NO. OF PEOPLE

12
11
9

Dark Milk White Nutty


TYPES

From where you prefer to purchase chocolates

21

16

12

1
Grocery store Super Market Online Chemist
Which product of Cadbury you like the most
10%

18%

52%

20%

DAIRY MILK FIVE STAR NUTTIES 30 BYTES

What is the first thing that comes to your mind


when you hear ‘Dairy Milk ‘?
What is the first thing that comes to your mind when you hear ‘Dairy Milk ‘?
18
16 16
14
13
12
11
10 10
8
6
4
2
0
TASTY SWEET HAPPINESS HUNGRY

3.3 FINDINGS
• 66% of the consumers prefer Cadbury chocolates over any other
brand.
• We have observed that most of the consumers prefer Dairy
Milk over any other chocolates produced by Cadbury.
  
•  44% of total population consider Taste and 28% consider
quality followed by endorsement with 16% and price with 12%
while purchasing chocolates.  
• Milk chocolates are preferred by most of population followed by
Dark , White and Nutty chocolates .
 
• It could be inferred that majority of consumers purchase
chocolates from supermarket than grocery stores , followed by
Online and least by chemists .
  
 Happiness is the first thing that comes in mind of majority of
people when they hear Cadbury
RECOMMENDATIONS
CHAPTER-4
 Maintain dominance in chocolate segment.

 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. (Business studies)

 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 remains
sterile. And is not effected by insects.

 They should bring many more flavors of Dairy Milk with focus on Health conscious
market segment i.e. low sugar chocolate bars

 There should be difference in pricing strategy of Cadbury i.e. in term of rural and urban
areas.

 It should show more and more ad of the chocolates that it is offering. For Example,
Cadbury only emphasis on Dairy milk chocolate the most and not the other products.
 It should introduce different schemes like giving mask to the children with their product
to attract children the most.
 The packaging of the Cadbury product should be made more attractive so that more and
more people attractive towards it. Every customer likes changes if not they get used to it
but they should take risk.
CONCLUSION
CHAPTER-5
5.1 CONCLUSION
 Brand plays an important role for growth in today’s competitive business
environment. It helps to maintain profitability in long run by differentiation in the
products and loyalty of customer.

 Cadbury Dairy Milk brand has developed its Megabrand Product range having its own
identity, but now they all come under the Dairy Milk brand. This proposal is planned
to maximize the strength of the Cadbury Dairy Milk brand. The strategy involved a
packaging and range refreshment strategy, which has resulted in a unified innovative
Dairy Milk brand.

 Having exceeded initial sales targets by a considerable margin, the strategy can be
considered a success!

 Branding is also one of the most important parts of any business whether it is small or
large, B2B or retail.

 An effective brand strategy results into the major periphery in increasingly


competitive markets.

 The foundation of the brand is your logo, website, packaging and promotional
materials all of which should integrate your logo–communicate your brand.

 Price plays an important role in the purchase of a product like dairy milk they have
introduced dairy milk the most popular chocolate in Rs.5 also which is within the
reach of every customer.

 Consumer prefers quality goods at lower price like Cadbury people just introduced
bytes, which is a snack, which is sweet
 Consumer is loyal to brand so it’s necessary to pay attention to the brand image.

 In today’s world most of the people see the image of the product and then purchase it.
So it’s necessary to make an image in market.

 Consumer prefers those goods whose advertisements are shown on television.

 Price should be according to the competitor’s price.i.e. the price of Cadbury should be
less or same as the competitor’s price.

5.2 LIMITATIONS

1. SAMPLE SIZE – My sample size was too small, it was difficult to find
significant relationships from the data, as statistical tests normally require a
larger sample size to ensure a representative distribution of the population and to
be considered representative of groups of people to whom results will be
generalized or transferred.

2. Lack of available and/or reliable data -- a lack of data or of reliable


data limit the scope of my analysis, the size of my sample, and was a significant
obstacle in finding a trend and a meaningful relationship.

3. Self-reported data -- I had to take what people say, whether in interviews,


focus groups, or on questionnaires, at face value. However, self-reported data
can contain several potential sources of bias that I had to be note as limitations.
These biases become apparent if they are incongruent with data from other
sources.
BIBLOGRAPHY

Books:

 Kotler, P., (1973-1974), Marketing Management Tools, Journal of


Retailing, 49(4-Winter):48-61.
 Kothari, CR (1974), Research Methodology, Cambridge, MA: The MIT
Press.
 Armstrong, G, &Kotler Philip, (2004) Principles of Marketing, USA:
Pearson Education Inc.

Website:

 https://en.wikipedia.org/wiki/Cadbury
 https://www.ukessays.com/essays/marketing/marketing-strategy-of-cadbury-
marketing-essay.php
 https://studylib.net/doc/8172576/marketing-strategies-of-cadburys
 http://marketingdawn.com/marketing-plan-of-cadbury/
ANNEXURES

QUESTIONNAIR
 NAME –

 AGE –

 GENDER –

1. Which chocolate do you prefer?


 Cadbury
 Amul
 Nestle
 Other - ……………………………………………………..

2. Which factor you consider while purchasing chocolate?


 Price
 Quality
 Brand endorsement
 Taste

3. Which product of Cadbury you like the most?


 Dairy milk
 Five star
 Nutties 30
 Bytes
4. What type of chocolate do you prefer?
 Dark chocolate
 Milk chocolate
 White chocolate
 Nutty chocolate

5. From where you prefer to purchase chocolates?


 Grocery store
 Super market
 Online
 Chemist

6. You want your chocolate to be –


 High in nutrition
 Fillings
 Rich in cocoa
 Others - ………………………………………………………

7. What is the first thing that comes to your mind when


you hear ‘Dairy Milk ‘?
 Tasty
 Sweet
 Happiness
 Hungry

8. How often do you eat chocolates?


 Daily
 Occasional
 Only when you received as gift
 Whenever you crave

9. The thing you love most about Cadbury?


 Packaging
 Taste
 Varieties

10. Rank the sub-brands of chocolates according to


your preference? (1 for most preferred)
 Dairy milk - ……….
 5 star-……….
 Perk-……….
 Celebrations- ……….
 Temptation - ……….

Que9. Which promotional


offers attract you most?
Free gifts Price Offer Any
other
Que9. Which promotional
offers attract you most?
Free gifts Price Offer Any
other

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