A

SUMMER TRAINING PROJECT REPORT

ON

“THE STUDY OF CADBURY’S MARKETING

STRATEGY & CUSTOMER PREFERENCES
TOWARDS IT”

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF THE DEGREE
OF
BACHELOR OF BUSINESS ADMINISTRATION
Affiliated To: C.C.S. University, Meerut
Session : 2018-2021

Submitted To: Submitted By:

Ms. Shivani Agarwal Navneet Kumar Singh

(Faculty) Roll No.: 180904105045
BBA – VIth Sem.

MEWAR INSTITUTE OF MANAGEMENT,

VASUNDHARA, GHAZIABAD

Page 1 of 94
 DECLARATION

I “Navneet Kumar Singh“ hereby declare that the work which is being presented in this report

entitled “The Study of Cadbury;s Marketing Strategy & Customer Preferences Towards

IT.” is an authentic record of my own work carried out under the supervision of my mentor

Ms. Shivani Agarwal (Faculty)

Date:

Place:

Navneet Kumar Singh

Roll No.: 180904105045
BBA-VIth Sem.

Page 2 of 94
 ACKNOWLEDGEMENT

This project is stepping stone towards the beginning of my professional carrier and its

satisfactory has gifted me with broader horizons of knowledge. This project is a fruitful result of

my concerned affords during my summer training at CADBURY INDIA LTD.

I would like to express my thanks to Mr. Gaurav Sharma (IT Manager) for given me an

opportunity to a part of this esteemed organization. I would like to express my deep sense of

gratitude to the entire international trade department for their inspiring guidance, continuous

engorgement and valuable suggestion.

I am thankful to Ms. Shivani Agarwal and all faculty members of BBA Department who

helped me to materialize this report.

At last but not the least, I would like to thank my all faculties and personnel of Cadbury India

Ltd, for there corporation and help.

(NAVNEET KUMAR SINGH)

Page 3 of 94
 PREFACE

The Cadbury’s India’s number one chocolate is able to share with their market insights based

upon unparallel breath of chocolate experience.

The merge in 1969 with Schweppes and the subsequent development of the business have led to

Cadbury Schweppes taking the led in both, the confectionery and soft drink market Intec UK and

becoming a major force in the international market. Cadbury Schweppes today manufactures

product in 60 countries and a trade in staggering 120.

This project is a sincere effort to look for the market potential in chocolate and confectionery

industry. A descriptive research procedure had been applied to come to the conclusions of the

project. A detailed questionnaire had been prepared and the responses of the concerned people

had been collected for the analysis. The project later concluded in recommending the market

potential of the chocolate and confectioneries.

Page 4 of 94
 CONTENTS

1. Executive Summary 6

2. Introduction 7-69

3. Research Objective 70

4. Research methodology 71-73

5. Data Analysis & Interpretation 74-80

6. SWOT Analysis 81-82

7. Findings 83

8. Limitation 84

9. Recommendations 85-89

10. Conclusion 90

11. Bibliography 91

12. Annexure 92-93

Page 5 of 94
 EXECUTIVE SUMMARY

TITLE: THE STUDY OF CADBURY’S MARKETING STRATEGY AND

CUSTOMER PREFERENCE TOWARDS IT

RATIONALE OF STUDY
The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate category.
The Cadbury’s 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.This report study about market share and different strategy
with its competitors.

To analyze the marketing strategies of the company with

 To determine the market share of Cadbury .

 To demonstrate the marketing strategies of Cadbury India Ltd.

The importance of the proposed study is:-

1) This report is useful for the researchers who are willing to do research on the Cadbury
chocolate and its present competitors in the market.
2) This report shows the problems associated with the Cadbury industry in the market as it helps
in removing these problems.
3) This report can be useful as a secondary data for chocolate industry.
4) This report helps in knowing the current and future scenario of confectionary industry.
5) This report helps in knowing market position of different confectionary industry.

Page 6 of 94
Page 7 of 94
Page 8 of 94
 INTRODUCTION

The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate category.

The Cadbury’s 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 led in both, the confectionary and soft drink market Intec 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”.

This project is a sincere effort to look for the market potential in chocolate and confectionery

industry. A descriptive research procedure had been applied to come to the conclusions of the

project. A detailed questionnaire had been prepared and the responses of the concerned people

had been collected for the analysis. The project later concluded in recommending the market

potential of the chocolate and confectioneries

Page 9 of 94
 THE LEGEND CALLED CADBURY

1824 – A once 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.

Page 10 of 94
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 through the inter – war years onward ahs been rapid. 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 moduled chocolate bar.

Page 11 of 94
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.

Page 12 of 94
 DESIGN DEVELOPMENT

Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder paste to the

dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today’s standards this chocolate

was not particularly good as it was very coarse and dry and was not sweet or milky enough for

public tastes.

At that time there was a great deal of competition in the U.K from continental manufactures, not

only the French with their fancy chocolates but also from the Swiss, who were renowned for

their milk chocolate. Led by George Cadbury junior, the Bourneville experts set out to meet the

challenge.

A considerable amount of time and money was spent on research and new plant design to

produce the new chocolate in much large quantities.

A new recipe was formulated fresh milk and new production processes were developed to

produce milk – chocolate not as merely as good as but better than the imported milk chocolate.

Four years of hard work were invested in the project and in 1905 what was to be Cadbury’s top

selling brand was launched. Three names were considered Jersey Highland Milk and Dairy

Maid. Dairy Maid became Dairy Milk and Cadbury’s Dairy Milk with its unique flavor and

smooth creamy texture was ready to challenge the Swiss domination of the milk chocolate

market.

Page 13 of 94
By 1913 it had become the company’s best selling line and in the mid twenties Cadbury’s Dairy

Milk gained its status as the brand leader, a position that it has held ever since. Today more than

250 million bars of Cadbury’s Dairy Milk are made every year and sales reach over 100 million

Pound in value.

While advertising and label design g-have changed with fashion and considerable strides have

been made in manufacturing technologies, the recipe for Cadbury’s Dairy Milk its ‘glass and a

half of full cream milk in every half pound produced’ is still basically the same as when it was

launched.

CADBURY’S DAIRY MILK STORY

Chocolate has been enjoyed by successive generation since the manufacturing process was

developed in the Victorian Times. Good chocolatiers is an art form depending on recipe

traditions, which have grown over the years. Chocolatiers have use their skills to make balanced

recipe in which all the ingredients combine to produced chocolate with all the characteristics that

enable full delicious taste to be enjoyed by the consumers.

Page 14 of 94
By today’s standards the first chocolate for eating would have been considered quite unpalatable.

It was the introduction of the Van Houten cocoa press from Holland that was the major break

through in the chocolate production as it provided extra cocoa butter needed to make a smooth

glossy chocolate.

CADBURY’S DAIRY MILK TRAY- 1915

Milk Tray has maintained its popularity in the changing world since the milk chocolate

assortment made with the famous Cadbury’s Dairy Milk chocolate was first introduced in 1915.

The name ‘tray’ derived from the way in which the original assortment was delivered to the

shops. Originally Milk Tray was packed in five and as half pound boxes, arranged on trays from

which it was sold loose o customers. The half pound deep – lidded box with the traditional

purple background and gold script was introduced in 1916, followed by one pound box in 1924.

With its stylish, without frills presentation Milk Tray was the assortment for everyday, not just

special occasion and it represented the best buy in the chocolate for millions of people. The pack

design has been regularly updated and the assortment itself has changed in line with consumers

taste and preferences.

By the end mid – thirties the Cadbury’s Milk Tray assortment outsold all its competitions and

today it is still one of the most popular boxes of chocolates in this country.

Page 15 of 94
 PRODUCT PROFILE

Chocolate & Confectionary

Dairy Milk

Fruit & Nut

Picnic

Perk

Gems

Éclairs

Page 16 of 94
Nutties

Temptation

Food Drinks

Ovaltine

Drinking chocolate

Bournvita

Horlicks

Page 17 of 94
 CADBURY’S FRUIT & NUT

New Launch
Cadbury target kids with Milk Treat: - It is a product that talks directly to the target

consumer. The product benefits have been defined as “The goodness of milk to the fun of

chocolate”. it combines both good health, multinational value of milk along with the values of

fun and excitement. The kinds formally associate with Cadbury chocolate offering.

Temptation :- It is aimed at the niche “international chocolate “ segment of the chocolate

market a segment how upgrade from brands such as Cadbury’s to premium international offering

such as Tolerance, Lindit and Hersheys. Roughly 5%of the total domestic consumption expected

to grow to some 10%. This segment is too good to miss out on.

Page 18 of 94
The Previous Cadbury’s range available in India did not offer consumer an option to upgrade to

international chocolate within the Cadbury’s fold. Temptation is an attempt to lug niche, priced

Rs. 30.

Page 19 of 94
 THE CADBURY STORY

Cadbury’s success story

In 1984, John Cadbury founded U.K. company with one aim:- to create the highest quality

chocolate. By1969, when Cadbury merged with the soft drink giant. Schweppes, Cadbury brands

were already famous all around world.

Today Cadbury’s production are enjoyed in 120 countries, with 40 chocolate confectionary

brands, Cadbury dominated markets as far as the U.K. and Australia that’s why Cadbury have

been dubbed “The world’s master chocolate makers”.

The secret of Cadbury’s success

What is the secret of Cadbury’s continuing success first there’s the careful selection of the finest

coca beans from west Africa, as well as tasty hazel nuts from Turkey and the fine sheet and

choicest natural ingredient available to us anywhere.Finally there’s skillful marketing Cadbury

always takes extreme care in selecting and marketing the right range of product in every cause.

Page 20 of 94
The right product, the right partners, the right marketing, the promotional back up and

the right employees. These are the ingredients in Cadbury’s latest recipes for success.

Right from the stand Cadbury Dairy Milk Chocolate success has been based on 4 factors:-

 Quality
 Value for money
 Advertising

AMUL CHOCOLATES

AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, Chocolate mass

Page 21 of 94
Composition:
 Milk Fat 2%

 Sugar 55%

 Total Fat 32.33%

 (Milk Fat + Cocoa Fat)

 Cocoa Solids 7.5%

 Milk Solids 20%

Product Specification:

Meets all requirements under the PFA for boiled sugar confectionary.

GUJRAT COOPERATIVE MILK MARKETING FEDERATION

GCMMF: An Overview

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products

marketing organisation. It is a state level apex body of milk cooperatives in Gujarat which aims

to provide remunerative returns to the farmers and also serve the interest of consumers by

providing quality products which are good value for money.

Page 22 of 94
Members: 12 district cooperative milk producers'

Union

No. of Producer Members: 2.36 million

No. of Village Societies: 11,333

Total Milk handling capacity: 6.9 million litres per day

Milk collection (Total - 2003-04): 1.81 billion litres

Milk collection (Daily Average 2003- 4.97 million litres

04):

Milk Drying Capacity: 511 metric Tons per day

Cattlefeed manufacturing Capacity: 2340 Mts per day

Sales Turnover Rs (million) US $ (in million)

2004-05 11140 355

2005-06 13790 400

2006-07 15540 450

2007-08 18840 455

2008-09 22192 493

2009-10 22185 493

2010-11 22588 500

2011-12 23365 500

2012-13 27457 575 Page 23 of 94

2013-14 28941 616

Page 24 of 94
 Amul Brands

Quality is the essential ingredient in all of our brands and the reason why millions of people

choose Nestlé products every day. Our consumers have come to trust in Nestlé’s commitment to

excellence and turn to Nestlé brands to maintain nutritional balance in a fast paced world.

Baby Foods:
Nutrition that suits the needs of your baby.

Dairy Products:
From shelf-stable solutions to chilled dairy.

Page 25 of 94
 Breakfast Cereals:
Start your day out healthy with Nestlé BreakfastCereals.

Ice Cream:
Discover the world of delicious Nestlé Ice Cream.

Chocolate & Confectionery:

Delighting the senses with a range of tastes and textures.

Prepared Foods:
Preparing well-balanced meals is a snap with Nestlé.

Page 26 of 94
Beverages:
Drink to a healthy, active life with Nestlé beverages.

Food Services:
Providing food and beverage professionals with a wide range of solutions.

Bottled Water:

Capturing nature in its purest form.

Page 27 of 94
 Petcare:
Nutrition, health and wellness for your pet.

NESTLE INDIA

THE NESTLE India stock has been bubbling with activity in an otherwise listless equity market.

Till date, the stock has surged 77 per cent from its low of Rs 304 in May 2000 and now
commands a valuation 39 times the expected earnings for 2000. This is steep by FMCG
standards

Page 28 of 94
The recent surge in the stock is partly driven by the announcement by the parent, Nestle SA, that

it would use the creeping acquisition route to mop up another five per cent in Nestle India

through open-market purchases. But improving the stock's valuation can also be traced to good

financial performance in a market starved of healthy earnings numbers.

On a comeback trail
The resumption of its coffee exports to Russia and a favourable input price environment pepped

up Nestle India's net profit growth to 28 per cent in the first nine months of 2000. Sales growth

in this period was 10.4 per cent, with domestic sales rising 9.8 per cent and export sales 13.8 per

cent.

In reality, the growth in sustainable net profits was higher than reported as the company took an

additional one-time charge of Rs 14.70 crore in the first nine months of 2000 for provisions

against contingencies.

Unusually, low input prices may have contributed considerably to margin expansion. Continuing

surpluses in global production have pushed both coffee and cocoa prices (the two key inputs for

Nestle India, apart from milk) to historic lows in 2000. While coffee prices are hovering close to

their seven-year lows, cocoa prices recently bounced off their lowest levels in three decades.

Page 29 of 94
With global agencies forecasting high carry-in stocks for the next season, the soft input price

advantage could be with Nestle for the time being. Does this mean Nestle India will sustain its

healthy earnings performance over the next couple of years? This will depend on its ability to

revive sales growth in its domestic product categories.

Greener pastures at home

Nestle's 10.4 per cent sales growth in the first nine months of 2000 is partly magnified by the low

base of comparison. The cessation of coffee exports to Russia due to the economic crisis there,

led to a 38 per cent drop in export sales (and a 5 per cent drop in net sales) for Nestle India in

1999.

Instant coffee exports to Russia resumed this year, but the business remains poor because

realisations have fallen in line with green coffee prices. Since realisations in the export market

are unlikely to look up in the next year, Nestle will continue to look to its domestic product

portfolio to sustain earnings growth.

Page 30 of 94
In recent times, as with other FMCG companies, Nestle India's topline growth in the domestic

market was unimpressive, at around 8 per cent in 1999 and 9.8 per cent in the first nine months

of 2000. In the domestic market, Nestle India has traditionally derived its revenues from five

product baskets -- coffee (Nescafe Select, Sunrise); milk products (Milkmaid condensed milk

and ready mixes, Coffeemate coffee creamer, Everyday Dairy Whitener); weaning foods for

infants (Cerelac, Nestum, Lactogen); chocolates/confectionery and malted beverages (Milo,

KitKat, Charge, Munch, Polo); and food products (Maggi noodles, soups).

Cash cows slow down

Of these, weaning foods and milk products are the cash cows, with dominant market shares in

both businesses. But as these are mature products, they appear likely to deliver steady, and not

scorching, growth rates. Sales growth in these businesses was less than five per cent in 1999-

2000.

In chocolates and instant coffee, the growth prospects appear brighter, but Nestle faces intense

competition from the players with the dominant market shares. While Unilever and Tata Coffee

are significant threats in the coffee market, the market leader Cadbury India has been a potent

threat in the chocolate confectionery market.

Page 31 of 94
Nestle's Kitkat has actually ceded market share to Cadbury's Perk in the past year. The market

for specialised food products such as soups and noodles holds healthy growth potential. But the

market is relatively small and players such as International Bestfoods, Unilever and Dabur are

vying with a host of imported brands and regional players for a share of the pie.

Stretching existing businesses

Over the past year, Nestle has devoted considerable attention to the expansion of its domestic

businesses. It has drawn brands such as Coffeemate coffee creamer, Frappe cold coffee and

Nescafe Gold from the Swiss parent's portfolio to expand its milk products and beverages range.

Incidentally, the inputs from the parent do not come free. Nestle India paid its parent a Rs 53.69-

crore royalty in 1999 (net profits for the year were Rs 98.47 crore). Royalty payments accounted

for 3.5-4 per cent of sales over the past three years.

Nestle has used the soft input prices to reduce prices of its coffee and chocolate brands. Products

such as KitKat and Munch in low-unit price packs have been used to encourage trial and bolster

flagging volumes. But these moves will take time to pay off.

Page 32 of 94
However, the revival in the 2000 third quarter domestic sales is heartening. For the quarter ended

September 2000, Nestle reported an 18 per cent growth in domestic sales (export sales declined 8

per cent due to lower realisations). Considering that Nestle has reduced both coffee and

chocolate prices over the past year and held other product prices, this indicates volume growth of

a higher order.

A plan to expand the network of Nescafe vending machines and establish coffee bars to

encourage out-of-home consumption of coffee is also on the cards.

Testing the waters

Over the past year, the company has also announced forays into three new areas -- liquid milk,

bottled water and biscuits. The foray into biscuits is through the joint venture Excelsia Foods, so

the contribution to Nestle's revenues may at best be in the form of dividends for now.

Liquid milk and bottled water are businesses that hold immense growth potential. Larger players

can expand through higher penetration levels and at the expense of the unorganised segment.

However, both these segments are quite crowded with feature listed and unlisted players which

have considerable financial muscle.

In the liquid milk segment, Nestle will be up against the formidable Amul, apart from a host of

private dairies with established clientele.

Page 33 of 94
In the bottled water market, the market leader, Bisleri (of Parle Products), has had to contend

with competition from scores of me-too brands, apart from Pepsi's Aquafina, Coca-Cola's

Kinley. Going forward, competition is only likely to increase, with Britannia planning to launch

more bottled water brands from its foreign collaborator Danone's portfolio (Evian, one of the

largest bottled water brands, is already on shop shelves).

Striving for niches

Nestle India has already launched two bottled water brands in the domestic market -- the

internationally renowned Perrier, followed recently by its sparkling mineral water brand, San

Pellegrino (reputed to be sourced from the Swiss Alps).

However, both products are for upmarket consumers. The premium pricing suggests that the

products will remain niche products with relatively small target markets. Pure Life, the mass

market bottled water brand to be launched shortly, will determine the success or failure of

Nestle's bottled water foray.

Nestle India has also shied away from the mass market for liquid milk in plastic pouches, and

instead restricted itself to ultra heat treated (UHT) milk in Tetrapacks. The product is priced at a

substantial premium to the other local brands.

Page 34 of 94
Investment outlook: Nestle's new product forays are into extremely competitive markets and

investments in the new businesses are likely to be high over the next few years.

In this respect, the advantage of soft input prices, high cash flows available from the stable

businesses (such as weaning cereals and coffee) and the financial might of the parent, Nestle SA,

will stand Nestle India in good stead.

The royalty to the parent should ensure that Nestle India continues to enjoy ungrudging access to

the parent's product portfolio. In many respects, in India Nestle is pitted against its key

adversaries worldwide -- Groupe Danone and Unilever. In the foods business at the global level,

both companies are considerably smaller than Nestle SA.

But marketing prowess, rather than size is likely to determine the success of Nestle India's new

product forays in the next couple of years. Since the high growth rates of this are partly on

account of the low base of last year, the growth rates are likely to reach more moderate levels

next year. The stock continues to be a good investment option for investors with a three-year

horizon. But since the recent uptrend is partly on account of factors unrelated to the

fundamentals, there could be some downside to the stock in the near-term.

Page 35 of 94
 ORGANIZATIONAL STRUCTURE

Managing Director

General Manager

Vice President

Marketing Manufacturing Sales Finance Distribution

Cadbury Schweppes

Page 36 of 94
Cadbury Schweppes plc, a global beverage and confectionary giant with annual sale of Rs

20,000 crores,is the worlds number one non – cola soft drink company having bottling and

partnership operations in 14 countries and franchises of its brand in a further 86 countries around

the world. Its Hundred Percent subsidiary in India named Cadbury Schweppes Beverage India

(private) Limited (CSBIL) started operation in March 1995.

The first brand was launched was crush which was later followed by Canada Dry, Schweppes

Tonic Water, Schweppes Bitter Lemon.

CSBIL with its franchise agreement with 19 bottles throughout India proposes to be a household

name. It has a policy for FOBOs (Franchise owned bottling operations unlike Coke and Pepsi

which prefer COBO,s (Company owned bottling operations). In FOBO the beverages company

only supplies the concentrate and the marketing support to build brand equity. The other aspects

like machinery, bottling line, land and distribution is the responsibility of the bottler. As its CEO

Mr. Ashok Jain says, “we are the software, they are the hardware”.

Page 37 of 94
 Cadbury’s Market Segment

Market place for any product is comprised of many different segments of consumers, each with

different needs and wants. Markets segmentation can be defined in a number of ways such as:

 Demographic variables (e.g. Consumers are groups, gender, material states income etc…)

 The lifestyle of consumers (i.e. their interests and activities) the benefits which consumers

look for in a product or on the occasions when the product might be consumed.

 Cadbury takes into account all these factors when producing a range of products. It targets

different segments within the market, such as the.

 Break segment – products which are normally consume as a snatched break and often with

tea and coffee, for example Cadbury’s Perk and snack range.

 Impulse segment – these products are often purchase on impulse, eating these and then.

They include product such as Cadbury’s Dairy Milk.

 Take home segment – this describes product that are normally purchased in supermarkets,

taken home consumed at a later stage.

Page 38 of 94
The Real Taste of Rejuvenation
It was the market – leader, but sales inched along. It focused firmly on its target segment, but the

real buyer lay beyond. For seven long years, Cadbury’s Dairy Milk chocolate suffered stagnancy

even as other consumer products boomed. Just how did the company rejuvenate an old brand to

create the marketing megs-hit of the 199s?

It Stand First Among Second coming. And it wasn’t so much a re-launch as it was a process of

rejuvenation. Over a period of 12 months, starting February, 1994, the Rs. 314 crore

confectionery makers Cadbury embarked on the most outrageous repositioning exercise in the

recent history of Indian marketing.

Page 39 of 94
For, it systematically dismantled the franchise that the company had built over 30 years of its

flagship brand, Cadbury’s Dairy Milk (CDM)-Cadbury’s Milk chocolate until 1986-destroying

the very fundamental of generic association that had made million of Indians refer to a bar of a

chocolate as a “Cadbury”.

More proof of the chocolate is in the eating: two years into process, CDM’s market share at 25%,

with sale rising by an average 40% per annum.

The Diagnosis

Today, The Real Taste of Life campaign, which served up chocolate in general, and COM in

particular, into the consciousness of adult, has already become a classic of advertising and

marketing. By 1993, Cadbury was desperately seeking growth for the brand… “With a market

share of 70%, trying to win away customers from competitors in this stagnant market wouldn’t

help. They had to find new customers, people who’d never bought chocolate before. Or, they had

to increase consumption levels”.

The obvious solution, in a peculiar predicament. Despite low penetration, both the brand and the

category were displaying symptoms of age: faltering growth, high recognition, and lack of

excitement.

Page 40 of 94
The market research revealed the cause of the graying: chocolate wasn’t a snack in India. “In

mature markets, chocolate straddle a continuum, from boutique product – packaged raw

indulgence – to a casual food”. So, Cadbury whipped up a growth solution that involved

associating the brand with snacking and functionally, which inevitably go together with high

consumption rates in the Western markets.

The next step: identify the barriers preventing consumers from chocolate as a snack. A battery of

test, both quantitative and qualitative, comparing chocolate consumption to a basket of

competitive products revealed an unmistakable answer.

The Tests

Despite the Need To Clear The residual memory of CDM’s former association, caution

prevented a big break with the past, forcing Cadbury to experiment with a combination of

continuity and change. The process entailed understanding the foundation of the brand, since it

was these that would support the new structure”. Out went the caring - and - sharing element, but

the family context stayed. “Cadbury had two pillars, so it made sense to change one”.

Page 41 of 94
Chocolate should be eaten whenever you feel like. It was an impulse item, so why shouldn’t it be
sold as one?”. The first of the two commercial focused on functionality, purging the emotional
element.

Is the storyline, The father watches TV, engrossed, gnawing away at a bar of CDM. The children
enter, followed by the mother-but, by that time, the father has completed the distinctly un
paternal act of devouring the entire bar. The children are shocked, where upon the produces
another bar for them-only to eat that up too. Finally, the mother brings another bar out of her
bag. The last shot more CDM bars strew around casually.

The second commercial conveyed the same message, depicting four member of a family doing
their own thing on a Sunday afternoon, each casually munching away on chocolates. The less
than – subtle message: eating chocolate’s just an everyday affair, without special occasion or
relationship coming into play. Despite their strategic intent, both ads failed on pre – airing tests.

Why for stators, children were outraged at the idea of a parent consuming chocolate, while adults
were down right angry at the notion of the father depriving his children of chocolate bar. Just as
important, consumer rejected the idea that chocolate-eating could be equated with mechanical
activities like combing one’s hair.

After all, chocolates were about feelings. There had to be magic, romance, love and emotion.
These elements had been ripped away from the advertising. It was sans emotion”.

Page 42 of 94
 “Parent Are Different From Adults”

Even as the ad failed, however, they generated a valuable byproduct, in the form of a new

insight, into adult behavior. “Using transactional analysis on response, Cadbury’s found that

adult as parents behave very differently from adults as adults. People forbid their children from

having chips, but gorge themselves. “The implication”:-

“The moment the adult was shown in the context of his role as a parent, all his cognitive
preconception about the product would come to the fore. He’d think about the reasons why, and
the block would automatically come up”.

Tap child-ego state within the adult, stimulating desire, spontaneity, and the craving for instant
gratification.

The Prescription

The crucial question that Cadbury was confronted with: what strategy should it deploy to
rejuvenate COM in a way that would appeal to the child lurking within the adult? To inject a
modern flavor into COM, they chose to create a new brand identity, borrowing a leaf from
marketing guru David Aaker, who decrees that brand identity should establish a relationship
between the brand and the customer by generating value proposition involving functional,
emotional, or self-expressive benefits.

Page 43 of 94
 “The Ads Had To Be Linkable”

“The consumer will always tell what his current belief system is, not what it should be Cadbury’s

job to mould has habits and behavior in a way that would increase consumption for product and

brand”.

“Impulse Drives Chocolate Sales”

One of the tools Cadbury’s used was Jean – Neal Kapferer’s Brand Prism model to examine

whether contemporary value systems offered a peg on which the brand could be judge. The study

disclosed, interlaid, a distinct shift from collectivism to individualism, with the pre – 1990’s

sacrosanct values of filial and family love being overshadowed by the manifestation of a larger

need for self – expression. “There was a definite yearning to be free child”. Therein lay the

opportunity for both unshackling consumption and creating all-new association for CDM.

The Elixir
Having decided to barter the distinctly use selfish values of sharing and caring for the

suspiciously self-centered one of self-expression, Cadbury’s people insisted that the rejuvenate

be enriched with compensation – and equally enduring – positive values: universal truths,

enduring human values, and universal moment of joy. To translate the brief into the commercial,

they decide to simply portray occasion of childlike-but not childish-behavior from adults,

without explicitly identifying adults as the target customer.

Page 44 of 94
“They left the connection to be made by the customer” “In the process they were able to get

viewer involvement and high levels of empathy. Nowhere did they actually say, you’re an adult,

you can eat it. Because nobody wants to be told”. Thus it was that, the montage of the child in

the man-the old man kicking the football; the pregnant woman carving a chocolate; young girl

breaking into a spirit; the young man tossing a bar of chocolate at his sweet-heart departing in a

bus-was created.

That the consumption had to be liked before it could penetrate the cultural resistance to chocolate

consumption by adults was obvious.

Taking a contrition stance, Cadbury decided to test the commercial being devised by O&M’s

creative team not for the tire battery of likeability, comprehension, credibility and behavior

modification – but only for the first two. “If asked upfront, the consumer was hardly likely to

consider the dramatically-different idea credible. Nor was there much chance of her announcing

an immediate change in behavior”. But why likeability and comprehension?

Simple: the first was meant to be the vehicle on which the daring idea-that adults should enjoy

chocolate-would ride into the consumer’s psyche.

In other words, the commercial was meant to make him smile at first-and only then realize the

import once of the message, which is where the comprehension had to be tested. “What was clear

in this case was that likeability would have to include identification and feeling warmth.”

Page 45 of 94
The Real Taste of Life Campaign

The very first ad in the campaign in 94 was ‘block – Buster’. It depicted the essence of one and a

half glass of milk pouring in to a boy Dairy Milk unique glass and half in to a chunk icon shows

the glass and a half of full cream milk flowing in to the chunk of dairy milk conveying the

deliciousness and taste appeal of the gooey, creamy, smooth chocolate inside the pack that

children like. The mnemonic of 1 ½ glass reached to consumer through every magazines, poster,

T.V, newspaper.

The second ad was montage of vignettes from every day lives of young and old which focused

on showing a series of emotions. The ad created a being out the child in the man created to bring

out the child in the.

The old man kicking the football, the pregnant women craving chocolate, young girls breaking

into a spirit, the young man tossing a bar chocolate at his sweet heart departing into a bus. The

common refrain linking them was the adult in a free child mode – spottiness, impulsive and

carefree.

Page 46 of 94
The ad was protested among adult’s trough focus groups. The ad received an overwhelming

response. It was high on likeability, evoked a great degree of empathy and identification

consumers’ response were those me…… “Feel like that…….”. “Every feels like this”……..

accessions. Consumers described dairy milk as “… of all ages”

“Eat, when ever you feel like it…you do not have to wait for an occasion.”

Dairy Milk had successfully enabled the free child in the consumer subsequent adverting used

the same communication strategy.

In other words, the commercial was meant to make him smile at first-and only then realize the

import once of the message, which is where the comprehension had to be tested. “What was clear

in this case was that likeability would have to include identification and feeling warmth.”

The New Campaign

And finally, with the launch of the new colloquial advertising campaign ‘Khaannein Wallon

Khaannein Ka Bahana Chahiya featuring MTV VJ Cyrus Broacha, Cadbury India aimed to

‘substantially’ increase penetration level of the chocolate category in the next few years.’

Page 47 of 94
The New campaign is worth noting as it clearly differ from the earlier one in terms of rectifying

the consumer perception about chocolate being an up market impulse – driven product. The

attempt now is to change the image, to make chocolate eating a regular habit.

The current estimated penetration level of the chocolate category is 19% in the urban market.

The objective behind tne new communication on Cadbury Dairy Milk is to make the chocolate

category more socially and culturally relevant and drive penetration in the process.

The new campaign has been launched in tandem with the old ar@@ Winning ‘Kuch Khass Hai’

campaign and the media strategy is to let the two co – exist towards a common vision “providing

a Cadbury in every pocket”.

Chocolate Market Share

The Indian chocolate market is getting bigger and better. While on one hand, the premium

segment (composing imported varieties) is opening up on the other, companies like Cadbury

India are launching indigenous product made to international standards.

Page 48 of 94
Of the 20,000 tones chocolate market worth about

Rs. 400 crore, Cadbury account for about 70% followed by Nestle, with a share of around 20%.

Amul has about 5% of the market, with minor player taking the rest. The battle, though, is

between Cadbury and Nestle. Though with a much smaller portfolio, Nestle is putting up a tough

fight.

From a treat for kids, chocolate are now being positioned near meal substitutes, thanks to the

initiative taken by the Cadbury India during early nineties. The market itself has become more

broad based, in the sense adults are an important target segment now.

The reposting of Cadbury’s Dairy Milk in 1994 as the ‘real taste of life (through the Slice of Life

and Cricket commercial by Ogilvy and Mather) grew the entire milk chocolate by 20%, and gave

the Cadbury’s range – 5 Star, Gems, Éclairs, Fruit & Nut, Crackle, Nutties, Butterscotch &

Tiffns – a new lease of life. In other words, it facilitated the repositioning of Cadbury’s sub

brands in the basket. Some o the strategic clicked, while other did not quite take off.

Page 49 of 94
The company is pushing the gifting segment, through occasion linked gifts. Chocolates

contribute to 64% of Cadbury’s turnover. Confectionary sales accounting for 12% of turnover is

contributed largely by Éclairs. The company attempted expanding its confectionary product

portfolio, with launch of sugar based confectionary goodly and fruits, without much success.

Cadbury also has a strong brand vita in the malted health drink category which account for 24%

of turnover.

There exists an even larger unorganized market in the confectionary segment. Cadbury has 4%

of the market share in this segment. Leading national players are nutrine, Pary’s Ravalgoan,

Candico, Parle, Joyoco India and Perfetti, the MNCs such as Joyco and Perfetti have

aggressively expanded their presence in the country in the last few years.

Malted food drinks category consists of white drink and down drink. White drinks accounts for

almost two third market of the 82,000 for market south and east are large market for drinks,

accounting for largest proportion of all India’s sale. Cadbury’s Bourn Vita is leader in the down

drink coca based segment in the white drink segment Smith Kline’s Horlicks in the Nestle Milo ,

GCMMF nitramul and other Smith Kline brand Boost, Maltova and Viva Cadbury bold 14%

market share in food drinks segment.

Page 50 of 94
Despite tough market condition and increased competition Cadbury managed to record a double

digit (11%) top line growth in 2000. The company achieved a volume growth of 5.2%. This was

achieved through innovative marketing strategies and focused advertising campaign foe flagship

brand Dairy Milk. Net profit rose sharply by

41.8% to Rs. 520 million. Reduced material and energy cost and tioter control over working

capital over working capital and capital expenditure enabled the company to improve the

profitability. Company added 8 million new consumers and saw its outlets grow to 4.5 lakhs and

consumer to 60 million.In the food segment, Britannia is the leader brand with 21% among those

who expressed an opinion saying that they like advertising for the brand Cadbury was clearly

No.2 with 18% to which CDM throw in its weight with 13% and pork with 4%. For the

Chowlate company, Khane Walo Lo, Khane Ka Bhanna and the Karwa Cauth, Sports are clear

winners.

Tied for the brand place are Amul, Parle and south based Arun Le Gram with 5% each.

Disappointment among bid brands Kissan and Maggi and Kwality Walls (1%) each.

Page 51 of 94
 Changing Product Mix

Contributing to turnover Contributing to turnover

1998 2003

Chocolate 59% 64%

Sugar Confecting 9% 12%

Food Drink 32% 24%

Current Market Share

Chocolate 69.2%

Sugar Confectionary 4.0%

Food Drink 14.2%

Page 52 of 94
 Expanding Distribution Reach

2001 + Distribution

450000 Retail Outlet

60 Million Consumers

Page 53 of 94
 PEST ANALYSIS

Will lose market share with globalization (a la Maruti) but will remain brand leader

P: since the budget range is decontrolled, no political effects are envisaged.

E: 1) increasing per capita income resulting in higher

Disposable income

Page 54 of 94
 2) Growing middle class/urban population – increase in

Demand

3) Low cost of production – better penetration

S: 1) Per capita consumption expected to increase – fashion

2) Increasing gifts culture – increase in demand

3) Lower cholesterol than “mithais” (sweet meat) –

substitute demand

T: Will have to reinforce technology to international levels

Page 55 of 94
 5 P’S OF MARKETING

PRODUCT

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:

 Chocolate & Confectionary

1) Dairy Milk

2) Fruit & Nut

3) 5 Star

4) Break

5) Perk

6) Gems

7) Eclairs

8) Nutties

9) Temptation

10) Milk Treat

Page 56 of 94
 Beverages
 Food Drinks
1) Bournvita

2) Drinking chocolate

3) Cocoa

PRICING

Make no mistake. Second P of marketing is not another name for blindly lowering prices and

relying on this strategy alone to increase sales dramatically. The strategy used by Cadbury’s is

for matching the value that customer pays to buy the product with the expectation they have

about what the production is worth to them.

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.

Page 57 of 94
 Dairy Milk Rs. 15

Perk Rs. 10

5 Star Rs. 10

Friut and Nut Rs. 22

Gems Rs. 10

Break Rs. 5

Nutties Rs. 18

Bournvita (500 gm) Rs. 104

Drinking chocolate Rs. 50

PHYSICAL DISTRIBUTION:- “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.

Page 58 of 94
The fundamental axiom of Indian consumer market is this:

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 know 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 product and price parity situation, the brand that sells

more is the one that reaches the highest number of customers.

Page 59 of 94
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 consist 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.

Cadbury’s distributes the product in the manner stated above.

Cadbury’s distribution network has expanded from 1990 distributors last year to 2100

distributors and 4,50,000 retailers. Beside use of TI tom improves logistics, Cadbury is also

attempting to improve the distribution quality. To address the issue of product stability, it has

installed visi colors at several outlets. This helps in maintaining consumption in summer when

sales usually drops due to the fact that the heal effects product quality and thereby off takes.

Page 60 of 94
Looking at the low penetration of the chocolate, a distribution expansion would itself being

incremental volume. The other reason is arch rival Nestle reaches more than a million retailers.

This increase in distribution is going to be accompanied by reduction in channel costs. Cadbury’s

marketing costs, at 18% of total costs, is much higher than Nestlé’s 12% or even pure sugar

confectionery major Parry’s 11%. The company is looking to reduce this parity level. At

Cadbury, they believe that selling confectionery is it like selling soft drinks.

PROMOTION

If an advertisement is to communicate effectively, the receiver must at least half want it to, and

be prepared too take step toward the sender. Effective advertising is rarely hectoring or loudly

explicit…. It often both attracts and generates arm feelings. More often than not, a successful

campaign has a stronger element of the unexpected a quality that good advertising shares with

much worthwhile literature.

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.

Page 61 of 94
The strategic response address 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. Thereafter it

was the job of the advertising to communicate customer the wonderful feeling that he could

experience by re-discoursing the careful, unself conscious, pleasure – seeking child within

himself – a graft these feeling onto the Ad campaign like “Khane Walon Ko Khane Ka

Bahana Chahiye” for CMD and “Thodi Si Pet Pooja – Kabhi Bhi Kahin Bhi” for Perk have

been sure shot winner with the audience.

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.

Page 62 of 94
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 has got potential for much

wide distribution, in a small sweets 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, 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 Valentines day, etc….

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.

Page 63 of 94
POSITIONING

In the 1970s consumers were ready to pay “more for more”, and luxury goods flourished. In the

1980s, consumers began to demand “more for same”, and the discounting era grew strong.

Today’s consumer demanding “more for less”, and the winner will be that super value

marketers…. Some of today’s most successful companies recognize those customers are more

educated and able to recognize true customer value…

Positioning is simply concentrating on an idea – or – even a word defines that company in the

mind of the consumer. It is more efficient to market one successful concept to one large group of

people than 50 product or service ideas to 50 separate group… repositioning is a must when

customer attitude have changed and product have strayed away from the consumer’s long

standing perception of the… Cadbury’s is an anchor in sea of confectionary products. As a

variety of competitive claims assails her senses, today customer uses complicated decision

making process to assess the alternative before making a purchase. Since Cadbury’s is more

clearly associated with a particular set of attributes in terms of benefits and prices, the quicker

becomes her search process.

Page 64 of 94
Positioning of individual product:

1. CMD: is and always remain flagship brand. The punch by the company for advertising

this product life. ‘Real taste of Life’, itself defines the positioning of the product. The

chocolate is meant for all age groups. It symbolizes fun, enjoyment, good items. It has

goodness of milk, taste and appetite appeal.

2. 5 star: although positioned internationally as an energy bar, 5 star was positioned on an

emotional platform in India during the late 1980s. Symbolizing togetherness, 5 star was

originally targeted at teenagers. In June 1994, the company reworked the strategy for 5

star to make it a source of energy. In fact, before the launch of Perk, 5 star’s energy bar

positioning made it a snacking chocolate.

3. Éclairs: competing in the chewable toffees segment. Éclairs was re-launched during the

mid-nineties with a new name, Dairy Milk Éclairs.

4. Gems: broadcasting Gems, though, didn’t prove to be feasible proposition for Cadbury.

Targeted at children under 12 years with ‘Gems Bond’ advertising. Cadbury decided to

too teenagers with the ‘Smart Very Smart’ campaign. But now, the company is

retargeting children with its animated commercial. “Gems are the best brand to speak to

children. Colorful

Page 65 of 94
.

5. chocolate buttons appeal most to children and that is why Cadbury is re-targeting

children.”

6. Crackle: it was the first Cadbury’s chocolate to have crunch in it. It was targeted as a

funky chocolate to add spark to life.

7. Perk: in September, 1995, Cadbury preempted the launch of Nestlé’s Kit-Kat by rushing

a new brand, Perk into the market. Positioned much further on the functional scale than 5

star, Perk was meant to be light snack-product for subduing the first pangs of hunger.

Bournvita: positioned as tasty health drink. While its competitors concentrated only on health

aspect, Bournvita combined the nutritious value with taste.

I. Chocolate & Confectionary

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

Page 66 of 94
Page 67 of 94
 The outlook

The Cadbury management has cut down on its growth target by setting a 10% average volume

target for next 3 years (as against previous growth) coupled with in factionary price increases,

this could translate into top line growth of 14 –15%. This target also appears difficult to achieve

given the consumer slowdown and the fact that the company’s consumer slow down and the fact

that company is dependent on a single category chocolates to drive growth. Effect it expanding

confection any portfolio have also not yielded desired results. The management has declared its

intention to focus only in Éclairs (which forms a major position of its 4% share in the

confectionary segment) for the time being in this category.

In chocolates too ones remain on the 2-3 key brands as CDM, perk in E claims which have

supported growth in the past. While new launched such as milk @ and Perk slims have been

doing will, the management expects that dairy milk would continue to be the central driving

force in Cadbury’s growth and that all other brands would remain peripheral to this central

brand.

Page 68 of 94
 POSITION OF THE VARIOUS BRANDS IN THE MARKET HAS BEEN LISTED
BELOW

Cadburys brands Positioning Nestle’s brands Positioning

Cadbury Dairy “The Real Taste of Classic Milk Positioned as an

Milk Life” Chocolate affordable enriched
milk chocolate

Positioned as
Fruit n Nut Position as adults Bar One
Trendy, Cool, any
as an impulse any
Creamy bar
time snack.
time purchase –
Roast Almond
self expression
Crackle values attached

Bournvita

5 Star / Perk/Break Perk – Positioned KitKat Positioned as a

as Snacking snacking
consumption consumption
“Thodi si Pet “Have a Break,
Pooja” Have a Kit Kat”

5 Star Energy bar

Reach for the
Stars.

Page 69 of 94
 OBJECTIVE OF THE RESARCH

To analyze the marketing strategies of the company with its competitor in the market. Following

are the some of the main objective of my report are as under:

 To analyze the marketing strategy of the Cadbury India Ltd.

 To study about the customer taste and preference in the confectionary item.

 And also to find out the satisfaction level of customers for their product.

IMPORTANCE OF THE STUDY

This report gives the help to the marketers for analyzing the different competitors in the

chocolate industry. These are the following some importance of this research report as under:

1) This report is useful for the researchers who are willing to do research on the Cadbury

chocolate and its present competitors in the market.

2) This report shows the problems associated with the Cadbury industry in the market as it helps

in removing these problems.

3) This report can be useful as a secondary data for chocolate industry.

4) This report helps in knowing the current and future scenario of confectionary industry.

5) This report helps in knowing market position of different confectionary industry..

Page 70 of 94
 RESEARCH METHODOLOGY

Research Methodology:

The purpose of research methodology section is to describe the research procedure this include

over all sampling design sample size data and data collection method

Sampling:

The data was to be collected only from the Consumers and Retailers. A questionnaire was

prepared and interviewing with Retailers and Consumers.

A decision has to be taken concerning a sample unit before selecting the number of samples. It

may be geographical as well as individual..

Size of Sample:

The sample size taken for this research report was 50 .

Data

The researcher should keep in mind two types of data primary data and secondary data

Primary data

Primary data are those data that have been observed and record by the researcher for the first

time to their knowledge .

Data based on facts ,knowledge , opinion and motivation.

Page 71 of 94
Primary data was collected using the following techniques –

 Questionnaire Method

 Direct Interview Method and

 Observation Method

The main tool used was, the questionnaire method. Further direct interview method, where a face

to face formal interview was taken. Lastly observation method has been continuous with the

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

Sources of secondary data

Used to obtain information on, Cadbury and its competitor history, current issues, policies,

procedures etc, wherever required.

 Internet

 Magazines

 Newspaper

Size of Sample:

This refers the number of items (Outlets) to be selected from the finite universe to constitute a

sample size. The survey was conducted of 50 outlets.

Analysis:

The data was tabulated manually and was also analyzed manually excel was used to make graphs
and pie chart.
 26% of people are interested in eating chocolate and 74% are not eating.

Page 72 of 94
  The Cadbury brand chocolate 75% of people prefer after that Nestle, Amul and
others are take place.
 Most of the people buy chocolate from superstore and after that from retail or movie
mall.
 54% people are not aware from this brand while 46% are aware.
 Dairy milk and 5 star is most famous product of Cadbury.
 Cadbury chocolate is very easily available in the market.

Achieving accuracy in any research requires in depth study regarding the subject. As the prime

objective of the project is to compare Cadbury with the existing competitors in the market and

the impact of Nestle on Cadbury, the research methodology adopted is basically based on

primary data via which the most recent and accurate piece of first hand information could be

collected. Secondary data has been used to support primary data wherever needed

Procedure of research methodology

 Target geographic area was Delhi. NCR.

 To this geographical area questionnaire was given, the questionnaire was a combination of

both open ended and closed ended questions.

 The date during which questionnaires were filled was between six week.

 Some dealers were also interviewed to know their prospective. Interviews with the owner of

retailer of Cadbury were also conducted.

 Finally the collected data and information was analysed and compiled to arrive at the

conclusion and recommendations given.

Page 73 of 94
Page 74 of 94
 DATA ANALYSIS & INTERPRETATION

1. Do you eat chocolates?

Yes
26%

No
74%

We find out there 74% people do not eat chocolate but otherwise 26% people eat chocolates,

and this % is over all chocolates industry.

Page 75 of 94
2. Which brand of chocolates do you use?

75
65
60
80
70
60
30
50
40
30
20
10
0
Cadbury's Nestle Amul Others

We find out there 75% people use Cadbury’s brand but other chocolates brand nestle 60%, Amul

65% and others are 30% use by the people.

Page 76 of 94
3. Where do you buy chocolates from?

Movie Others Super

Halls 6% stores
17% 32%

Restau
rants
10% Retail stores
34%

We find most of the people like to buy from retail stores 35% and other places are movie

halls 17%, super store 32%, restaurants 10%, others 6%.

Page 77 of 94
4. Are you aware of any campaign of the above brands?

Yes
No 46%
54%

This finding shows that how much people are aware about the brands, there are just 46% people

know about the brands and 54% people do not about the brands.

Page 78 of 94
5. Which cadbury’s product do you usually prefer or use?

80
70
80
70
60 40
35
50 24
40
30
20
10
0
Dairy Milk 5 Star Fruit & Nut Perk Tempta-
tion

we find out there most of the people love to use dairy milk 80%, and others are 5star 70%, fruit

& nut 24%, perk 35%, temptation40%.

Page 79 of 94
6. Do you think Cadbury’s chocolate is easily available in market ?

90
80
70
60
50
East West
40
30
North
20
10
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

There are 91% people think the Cadbury chocolates are easily available, but 9% people think the

availability is not easy.

Page 80 of 94
 SWOT ANALYSIS

Strength

1. Very strong brand equity in India.

2. Due to its 54 years presence in India – has deep penetration – 2100 distributors; 450,000

retailers, 60 mid urban (22%) customers.

3. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% - leader in brown

segment).

4. Low cost of production due to economic of scale. That means higher profits and / or more

competitioners. Better market penetration.

5. Second best manufacturing location throughout Cadbury Schweppes.

Weakness

1. Poor technology in India compared to current international technologies (Godiva, Mozart,

Fazer, Dint, Naushans, etc...)

2. Ltd. Key products, only one central brand (CDM). Pralines range totally wising in India.

3. “Make in India” tag once the economy opens up wore and imports rush in.

Page 81 of 94
 Opportunities

1. Tremendous scope for per capita consumption (160 gms of 8 – 10 kg)

2. Increasing per capita national income resulting in higher disposable income.

3. Growing middle class and growing urban population.

4. Increasing gifts cultures.

5. Substitute to “Mithais” with higher calories/cholesterol.

6. Increasing departmental stores concept – impulse @ at cash counters.

7. Globalisation: optimal use of global Cadbury Schweppes.

Threats

a] Major

None. Due to low cost and highest brand equity, it is today in India.

b] Minor

Globalization will being in better brands for upper end of the market (Liest, Monarch, Godiva,
etc…).

Page 82 of 94
 FINDINGS

Data was tabulated manually and was also analyzed manually. Excel was used to
make graphs had pie charts.

Main technique used were:

Modal value was used to analyze the questions, which has 2 or more choices as
their answers. Simple average were used to get answer to questions

 We find out there 74% people do not eat chocolate but otherwise 26% people eat
chocolates, and this % is over all chocolates industry.

 We find out there 75% people use Cadbury’s brand but other chocolates brand nestle
60%, Amul 65% and others are 30% use by the people.

 We find most of the people like to buy from retail stores 35% and other places are
movie halls 17%, super store 32%, restaurants 10%, others 6%.

 This finding shows that how much people are aware about the brands, there are just
46% people know about the brands and 54% people do not about the brands.

 we find out there most of the people love to use dairy milk 80%, and others are 5star
70%, fruit & nut 24%, perk 35%, temptation40%.

 There are 91% people think the Cadbury chocolates are easily available, but 9%
people think the availability is not easy.

Page 83 of 94
 LIMITATIONS OF STUDY

Although all efforts have been made to study whole population, but due to lack of time and other

resources study has been done by taking random sample of different area. But the study will try

to find out the real depth of the actual position as far as possible.

The study has following limitations:-

1. Since the product under study was consumer goods, which require a large sample to have

a correct study, a sample size of 103 respondents was too small for it. But time and

money did not allow researcher to have a large sample. And also to manage a large

sample would also be difficult by researcher alone.

2. Duration of study also posed limitation on further intensive study.

3. Mostly stress was given on primary data, as it was difficult and out of scope of the study

to collect secondary data from organization and distributors.

4. The sample selected is not purely random sample but it is convenient so that the result of

the survey do not have any high degree if statistical significant.

5. The result of survey are based upon crucial assumption like-

A. The respondents know right answer to the question put to them.

B. They are willing to give the right answer.

C. Strictly base on the response of the retailer.

D. IDifficult to ascertain the authenticity of their statement.

6. it is very difficult to get right answer from old mentality Retailers.

Page 84 of 94
 RECOMMENDATIONS

 Maintain dominance in chocolate, confectionery and market leadership in blown drinks.

 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.

 Achieve the goal of best manufacturing location in Cadbury Schweppes world for Dairy

Milk and Éclairs.

 One new major product launch every year.

Page 85 of 94
 Few Concerns Come To Mind

With a market share of 70% in the chocolate category and with the free availability of

international brands that you see in the market today, it is only natural that Cadbury’s market

share will move down from here marinating a 70% market share in a closed environment may

have been easy, but it certainly won’t be easy in liberalized environment of free imports. And

whatever be the anomalies of taxation or low, the consumer is surely going to have a wider

choice. And it is going to be shared with other brands too in future. There is additional challenge

of Cadbury’s brand just aiming market share when the consumer has a wide portfolio of brand to

choose from.

While there would be new chocolates launch towards the end of the year, the company has ruled

out a real big chocolates launch in the current year. And it is too early yet to comment on the

long term response to the new launch temptations. They say chocolates are mostly am impulse

purchase. Therefore consumer would prefer smaller, low cost packs to bigger higher priced ones.

The growth trend of the brands therefore clearly indicates that the only brand that has grown is

the one that gas received tremendous marketing and advertising support Dairy Milk withdraw

support for any brand and growth loses momentum. In such scenario, for how long and how

many brands can the company continuously support?

Page 86 of 94
 FUTURE STRATEGY

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 and Éclairs. The company is today the

second best manufacturing location of Cadbury’s Schweppes in the world.

Page 87 of 94
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 efforts in

expanding local coca area developing. 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.

 Use of it to improve logistic and distribution competitiveness

 `Utilizing mass media to create and maintain brands.

 Expand the consumer base. The company has added 8 million new consumer in the

current year and how has consumer base of 60 million although the growth in absolute

numbers is lower than targeted, the company has been able to increase the width of its

consumer base through launch of low priced products.

 Improving distribution quality by addressing issues of product stability by installation of

visi coolers at several outlets. This would be really effective in maintaining consumption

in summer, when sales usually dip due to the fact that the heat effects product quality and

thereby consumption.

Page 88 of 94
 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. The management is not unduly concerned about the huge

deluge of imported chocolate brands in the market place.

 It is of the view that size of this imported premium market is look 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.

Page 89 of 94
 CONCLUSION

This company project has demonstrated “CADBURY CHOCOLATE MARKETING

STRATEGY WITH ITS MAIN COMPETITORS” that has proved to be extensive through, and

of great benefit to the company in furthering its competitive advantage. It also helps the company

for building its future planning and targeting the customers for more satisfaction through its

innovative product.

In this project it possible to see the success of Cadbury’s in its indorse its strong potential to

continue to do well and also gives the ways to maintain its market potential.

Page 90 of 94
 BIBLIOGRAPHY

BOOKS-

 “Marketing Management”, Philip Kotler

 “Research Methodology”, C. R. Kothari

MAGAZINE

 Advertising and marketing Magazine

 Business World

SECONDARY DATA COLLECTION

 Company Literature

WEBSITE

 www.cadburyindia.com

 www.google.com

Page 91 of 94
 QUESTIONNAIRE

1. Do you eat chocolates?

 Yes  No

2. Which brand of chocolates do you use?

 Cadbury’s

 Nestle

 Amul

 Others

3. Where do you buy chocolates from?

 Super stores

 Retail Stores

 Restaurants

 Movie Halls

 Others

4. Are you aware of any campaign of the above brands?

 Yes  No

Page 92 of 94
5. Which cadbury’s product do you usually prefer or use?

 Dairy Milk  5 Star

 Fruit & Nut  Perk

 Temptation

6. Do you think Cadbury’s chocolate is easily available in market ?

 Yes  No

7. Describe Cadbury’s Chocolate in one word?

______________________________________________________

8. Your comments on Cadbury’s products?

______________________________________________________

9. Which company's chocolates you preferred to sale?

10. Why you preferred this particular company's product?

A. Due to margin

B. Quality

C. Customer preference

D. Can't say

11 .What sort of purchases do you make?

A. In credit form

Page 93 of 94
B. In cash form

C. Both

Page 94 of 94