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BALAJI COLLEGE OF ARTS, COMMERCE & SCIENCE

PUNE - 411033

BATCH 2020-2023

A PROJECT REPORT ON

ANALYSIS OF EFFECTIVENESS OF CONSUMER PROTECTION


LEGISLATION IN INDIA

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT OF THE COURSE

BACHELOR OF BUSINESS ADMINISTRATION

BY

ANUSHKA MUNDHRA

B.B.A SEMESTER- V

EXAM SEAT NO.____________

UNDER THE GUIDANCE OF THE PROJECT GUIDE

PROF.APEKSHA AGARWAL

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ACKNOWLEDGEMENT

I would like to express my sincere thanks to the Savitribai Pune University and
BALAJI COLLEGE OF ARTS, COMMERCE & SCIENCE for giving me the
opportunity to prepare and present this report. “There is a good saying that the
work is successfully completed if it is guided properly at the right time by the
right person”, with that the good opportunities that we receive as well as the
efficient supervision and the most valuable the internal guidance. Hereby I
would like to express my deep gratitude to our project guide
“ PROF.APEKSHA AGARWAL”, who in her busy schedule provided us with
full support and encouragement, her whole hearted cooperation throughout the
progress and the completion of the project. Last but not the least, I wish to thank
all my teachers and friends too, for their helpful inputs, insightful comments,
steadfast love and support.

SIGNATURE OF STUDENT: ANUSHKA MUNDHRA

TYBBA (MARKETING SPECIALISATION)

SEMENSTER-V

PLACE: PUNE

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INDEX

1. INTRODUCTION : CONSUMER PROTECTION ACT


2. RIGHTS AND RESPONSIBILITY OF CONSUMER
3. OBJECTIVE OF CONSUMER PROTECTION ACT
4. NEED OF CONSUMER PROTECTION ACT
5. SUPREME COURT CASES UNDER
CONSUMER PROTECTION ACT ( ONLY SECTIONS )
6. INTRODUCTION CADBURY
 CADBURY VALUES
 CADBURY PROFILE
 CADBURY SWOT
 5 C’s OF CADBURY
 SEGMENTATION , TARGETING AND POSITIONING
7. CADBURY CASES UNDER CONSUMER PROTECTION ACT
8. CADBURY FIGHTS -BACK
9. CADBURY SINGING SWEETLY AGAIN
10.HOW THEY OVERCOME THEIR FAILURES
11.RESEACH METHODOLOGY
12.RESULT
13.RECOMMENDATIONS
14.CONCLUSION
15.BIBLIOGRAPHY

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INTRODUCTION

The Consumer Protection Act,1986 (COPRA) was an Act by the Parliament


of India elected to protect the interests of consumers in India.It was replaced by
the Consumer Protection Act, 2019. It was made for the establishment of
consumer councils and other authorities for the settlement of consumer's
grievances and matters connected with it. The act was passed in Assembly in
October 1986 and came into force on December 24, 1986. The statute on the
right was made before this COPRA act 1986.

The Consumer Protection Act, implemented in 1986, gives easy and fast
compensation to consumer grievances. It safeguards and encourages consumers
to speak against insufficiency and flaws in goods and services. If traders and
manufacturers practice any illegal trade, this act protects their rights as a
consumer. The primary motivation of this forum is to bestow aid to both the
parties and eliminate lengthy lawsuits.

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This Protection Act covers all goods and services of all public, private, or
cooperative sectors, except those exempted by the central government. The act
provides a platform for a consumer where they can file their complaint, and the
forum takes action against the concerned supplier and compensation is granted
to the consumer for the hassle he/she has encountered.

Consumer Rights and Responsibilities:

The Rights of the Consumer

 Right to Safety- Before buying, a consumer can insist on the quality and


guarantee of the goods. They should ideally purchase a certified product
like ISI or AGMARK.
 Right to Choose- Consumer should have the right to choose from a
variety of goods and in a competitive price.
 Right to be informed- The buyers should be informed with all the
necessary details of the product, make her/him act wise, and change the
buying decision.
 Right to Consumer Education- Consumer should be aware of his/her
rights and avoid exploitation. Ignorance can cost them more.
 Right to be heard- This means the consumer will get due attention to
express their grievances at a suitable forum.
 Right to seek compensation- The defines that the consumer has the right
to seek redress against unfair and inhumane practices or exploitation of
the consumer.

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The Responsibilities of the Consumer

 Responsibility to be aware – A consumer has to be mindful of the safety


and quality of products and services before purchasing.
 Responsibility to think independently– Consumer should be well
concerned about what they want and need and therefore make
independent choices.
 Responsibility to speak out- Buyer should be fearless to speak out their
grievances and tell traders what they exactly want
 Responsibility to complain- It is the consumer’s responsibility to
express and file a complaint about their dissatisfaction with goods or
services in a sincere and fair manner.
 Responsibility to be an Ethical Consumer- They should be fair and not
engage themselves with any deceptive practice.

Objective of the Consumer Protection Act, 2019

The main objective of the Act is to protect the interests of the consumers and to
establish a stable and strong mechanism for the settlement of consumer
disputes. The Act aims to:

1. Protect against the marketing of products that are hazardous to life and
property.

2. Inform about the quality, potency, quantity, standard, purity, and price
of goods to safeguard the consumers against unfair trade practices.

3. Establish Consumer Protection Councils for protecting the rights and


interests of the consumers. 

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4. Assure, wherever possible, access to an authority of goods at
competitive prices.

5. Seek redressal against unfair trade practices or unscrupulous


exploitation of consumers.

6. Protect the consumers by appointing authorities for timely and


sufficient administration and settlement of consumers’ disputes.

7. Lay down the penalties for offences committed under the Act.

8. Hear and ensure that consumers’ welfare will receive due


consideration at appropriate forums in case any problem or dispute
arises.

9. Provide consumer education, so that the consumers are able to be


aware of their rights.

10.Provide speedy and effective disposal of consumer complaints through


alternate dispute resolution mechanisms.

What are consumer rights under Consumer Protection Act, 2019

There exist six rights of a consumer under the Consumer Protection Act, 2019.
The rights of the consumers are mentioned under Section 2(9) of the Act, which
are as follows:

1. The right of a consumer to be protected from the marketing of goods


and services that are hazardous and detrimental to life and property.

2. The right of a consumer to be protected against unfair trade practices


by being aware of the quality, quantity, potency, purity, standard and
price of goods, products or services.

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3. The right of a consumer to have access to a variety of goods, services
and products at competitive prices.

4. The right to seek redressal at respective forums against unfair and


restrictive trade practices.

5. The right to receive adequate compensation or consideration from


respective consumer forums in case they have been wronged by the
seller.

6. The right to receive consumer education.

Need for Consumer Protection Act

The necessity of acquiring measures to protect the interest of consumers come


to light mainly due to the vulnerable position of the consumers.

Social Responsibility: It is the moral responsibility of the business to serve the


interest of consumers. In line with this principle, producers and traders have to
provide the right quality and quantity of goods at fair prices.
Increasing Awareness: Consumers are becoming more mature and conscious
of their rights against the malpractices of the business. Many consumer
organisations and associations are making efforts to build consumer awareness.
Consumer Satisfaction: The Father of the Nation, Mahatma Gandhi, had once
called manufacturers and traders to” treat your consumers as god”. Consumer
satisfaction is the only key to the success of the business. Hence, people in
business should take every step to serve the interests of consumers by providing
them quality goods and services at a reasonable price.
Survival and Growth of Business: Businesses have to be in the service of
consumer interests for their survival and growth. On account of globalisation
and the rise in competition, any business organisation which indulges in

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malpractices or fails to provide improved services to its ultimate consumer shall
find it difficult to continue.
Principle of Trusteeship: Resources/Assets were contributed by society. They
are merely the trustees of the wealth and, therefore, they should use such
resources effectively for the sake of the community, which includes the
consumer. 

Rights of the Consumer

 Right to Safety – To be secured against the marketing of goods on


delivering dangerous services to health and life
 Right to Information – To be protected against dishonest or misleading
advertising or labelling and the right to be given the facts and figures
needed to make an informed choice
 Right to Choice –To choose products at competitive prices with an
assurance of satisfactory quality
 Right to Representation – To express consumer interests in the making
and execution of government policies
 Right to Seek Redress – To be compensated for misrepresentation,
shoddy goods or unsatisfactory services
 Right to Consumer Education –To Acquire the Knowledge and skills
necessary to be an informed customer
 Right to Basic Needs – This Guarantees adequate food, shelter, health
care, clothing, education and sanitation

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CASES REGISTERED UNDER SUPREME COURT OF CONSUMER
PROTECTION ACT :
1. M/S Imperia Structures Ltd. vs Anil Patni And Anr. Etc. on 2 November,
2020

Anil Patni 2 referred to as “the Commission”) in Consumer Case Nos.3011 ...


relevant facts leading to the filing of the aforesaid Consumer Cases are almost
identical and for the present purposes

Supreme Court of India

2. Neena Aneja vs Jai Prakash Associates Ltd. on 16 March, 2021

instituted a consumer case3 before the National Consumer Disputes Redressal


Commission4 on 18 June 2020. The consumer case was
instituted ... Consumer Protection Act 19865. The NCDRC by its order dated
30 July 2020 dismissed the consumer case on the ground

Supreme Court of India


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3. Rameshwar Prasad Shrivastava vs Dwarikadhis Projects Pvt. Ltd. on 7
December, 2018

National Consumer Disputes Redressal Commission, New Delhi (‘the National


Commission’ for short) dismissing Consumer Case ... more consumers, where
there are numerous consumers having the same interest; (v) In case of death of
a consumer

Supreme Court of India

4. U.P.Power Corporation Ltd. & Ors vs Anis Ahmad on 1 July, 2013

Protection Act . 9. Case of Shahzadey Alam Shahzadey Alam filed a


complaint case before the District Consumer Protection Forum ...
more consumers, where there are numerous consumers having the same
interest; v) in case of death of a consumer

Supreme Court of India

5. Ferro Alloys Corpn. Ltd. And Ors. ... vs A.P. State Electricity Board
And ... on 15 April, 1993

cannot be utilised against nonpayment of dues from consumers. Besides,


the consumers can also ask for the refund. Therefore, Sections ... advances to
generate electricity and supply to consumers, the consumers use
and consume electricity on credit ranging from

Supreme Court of India

6. Kalyaneshwari vs U.O.I. & Ors on 21 January, 2011

protection of consumers' interest. This Court in


the case of Consumer Education and Research Centre v. Union of India ...

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judgment of this Court in the case of Consumer Education and Research Centre
(supra), it is averred that strict instructions

Supreme Court of India

7. L.M.L. Ltd vs State Of U.P. & Ors on 13 December, 2007

should not use electricity in the restricted period. In case consumers of this


category use electricity in the restricted period ... cent surcharge would not be
levied in case a consumer getting supply from an independent feeder
emanating from

Supreme Court of India

8. Pradeep Kumar . vs Post Master General . on 7 February, 2022

National Consumer Disputes Redressal Commission, New Delhi, the


‘NCDRC’ for short, whereby their complaint registered as Consumer Case ...
Singh referred to a criminal case already pending against him and that
the consumer complaint was not maintainable. 8. Rukhsana

Supreme Court of India

9. New India Assurance Co. Ltd vs Hilli Multipurpose Cold Storage ... on 4
March, 2020

benefit or protection of the consumer. From the above, it is evident that


the Consumer Protection Act has been enacted ... such time as provided under
the Consumer Protection Act , and in such a case, the opposite party will

Supreme Court of India

10.Sobha Hibiscus Condominium vs Managing Director, M/S. Sobha ... on


14 February, 2020

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Full Bench judgment of the NCDRC, New Delhi in Consumer Case No.560 of
2014 and batch titled Moulivakkam Trust ... consumer association can file
complaint on behalf of a single consumer, but cannot file complaint on behalf
of several consumers

Supreme Court of India

CADBURY

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Cadbury is a leading global confectionery company with an outstanding
portfolio of chocolate, gum and candy brands. We create brands people
love - brands like Cadbury, Trident and Halls.
Our heritage starts back in 1824 when John Cadbury opened a shop in
Birmingham selling cocoa and chocolate. Since then we have expanded
our business throughout the world by a programme of organic and
acquisition led growth. On 7 May 2008, the separation of our
confectionery and Americas Beverages businesses was completed
creating Cadbury pic with a vision to be the worlds BIGGEST and BEST
confectionery company

MISSION
Cadbury’s mission statement is, “Cadbury means quality; this is our promise.
Our reputation is built upon quality; our commitment to continuous
improvement will ensure that our promise is delivered.”

From Cadbury mission statement, it is clear that Cadbury has always targeted
quality over quantity since its inception. The company continues to follow the
footsteps of the founding father- John Cadbury and follow his ideals. The
incessant efforts of the company have been the reason for its growth.

Cadbury mission statement can be understood in a better way by understating its


key points in detail.

VISION.
Promotion of brands carrying mass franchise without compromise on quality or
margins

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Increasing the market depth including rural India's coverage. (50 far in case of
chocolates, rural areas are not covered)
*Better product quality and packaging.
-All round efficient utilisation of tangible as well as intangible assets such as
brands and people.
Efficient working capital management
-Depreciation charge to meet the CAPEX needs every gear.
Surplus cash so generated to be either gainfully and meaning fully
Registered in business or return to stakeholders.

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CADBURY VALUES

We are performance driven, values led. Throughout changing times, our


constant values have inspired us to be pioneers in business and in corporate
responsibility. They help ensure we are proud of our company and are critical to
our core purpose of creating brands people love.

Performance

We are passionate about winning. We compete in a tough but fair way. We are
ambitious, hardworking and make the most of our abilities. We are prepared to
take risks and act with speed Quality

We put quality and safety at the heart of all of our activities - our products, our
people, our partnerships and our performance.

Respect

We genuinely care for our business and our colleagues. We listen understand
and respond. We are open, friendly and welcoming. We embrace new ideas and
diverse customs and cultures.

Integrity

We always strive to do the right thing. Honesty, openness and being straight
forward categorize the way we do business. We have clear principles and do
what we say we will do.

Responsibility

We take accountability for our social, economic and environmental impact.

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In this way we aim to make our business, our partners and our communities
better for the future Our Business Principles are our code of conduct and also
take account of global and local cultural and legal standards. They confirm our
commitment to the highest standards of ethics and business conduct. Core
purpose and vision section: Core purpose: Our core purpose is creating brands
people lone. The core purpose captures the spirit of what we are trying to
achieve as a business.

Type Subsidiary

Industry Confectionery

Founded 1824 (198 years
ago) in Birmingham,
England
Profile of
Founder John Cadbury
cadbury

Headquarters Uxbridge Business


Park, Buckinghamshire,
England

Key people Dirk Van de Put,


(chairman & CEO)

Products See list of Cadbury


products

Parent Mondelez International


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Website cadbury.co.uk
SWOT ANALYSIS OF CADBURY

Strength

Cadbury being a rumored organization has its image name as perhaps its
greatest strength. It has been available for north of 65 years even before contest
could peep-in. Because of its essence for such countless years individuals will
more often than not partner chocolate with Cadbury. It is as though Cadbury is
inseparable from conventional class chocolate. Cadbury is an entirely beneficial
association, producing income in billions. Cadbury India Ltd is upheld by its
parent organization, Mondelez International. An enormous scope of items like -

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chocolates, refreshments, malted food sources and so forth are produced by
Cadbury. These items are sensibly valued to suit different monetary customer
classifications. VIP supports have expanded deals and furthermore added
sparkle to the brand name. Cadbury India has the greatest piece of the pie at
67% while Nestle is the second biggest at 21%. Amul and other hold the rest.
Despite advancement in the chocolate portion, their essential chocolate, Dairy
Milk, actually appears to stay the record-breaking top pick of a great many
people. Minimal expense of creation due to monetary of scale. That implies
higher benefits, better market entrance with the solid circulation organization.

Weaknesses

The situation of worms being found in Cadbury chocolates lead to a brief


decrease in deals. Likewise Cadbury offers a restricted assortment of items
instead of other driving serious brands, for example Amul and Nestle that offer
a variety of items like bread rolls, dairy items, and so on One of the significant
natural substance for example Cocoa must be imported prompting bundled
imports and higher stock. Likewise larger part of business sectors in India are
not Air adapted and consequently can't store chocolates basically during
blistering summers, which restricts the market access. There is absence of
entrance in the provincial market where individuals will generally excuse it as a
very good quality item. It is fundamentally found in metropolitan and semi-
metropolitan regions. The working benefit of the organization declined,
declining productivity will antagonistically influence the activities of the
organization. Helpless innovation in India contrasted with current worldwide
advances.

Opportunities

As Cadbury has set up a good foundation for itself very well in the Indian
market, it can now limit to a few famous items and can cut down its own

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individual Cadbury's store. It has abilities to build the scope of items produced.
The organization can without much of a stretch endeavor into new portions
independently or mutually. Another vital open door that can be noticed is the
presentation of unfamiliar items in India. The organization can zero in on
focusing on metropolitan regions and creating areas by dealing with
accessibility and moderateness. The organization targets acquiring proficiency
operations and circulation. This can in all likelihood be accomplished by
utilizing data innovation. Cadbury can likewise zero in on acquiring benefits
through biting gum market in India.

Threats

As Cadbury has effectively confronted a worm outrage, its standing has been
put in question by the contenders attempting to take advantage of the present
circumstance. Cadbury faces a genuine danger in the ice cream parlor section
from organizations like Amul, Nestle, and so on As Cadbury produces
chocolates and a couple of related items, viable administration of the multitude
of regions ends up being troublesome now and again. Patterns of procurement
might change with the steadily changing taste inclination of purchasers.
Changing limitations and rules from Government quality control sheets might
bring about tension on the creation of the organization and cost increment.
Likewise, Cadbury is presented to ascend in the expense of cocoa beans, dairy
items and other imperative fixings

THE 5 C’S MODEL

Company

Cadbury dairy milk is a brand of chocolate made by Cadbury Plc. unit of Kraft
Foods and sold in a few nations all over the planet. It initially went on special in
1905 in the United Kingdom. The current parent is Mondelez International.

Customers
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The imminent client of dairy milk range from 5 to 60 years old. Since dairy
milk has a scope of item appropriate for each individual from the family. The
point is to fortify the brand relationship in the current buyer's life. The scopes of
clients shift for journal milk. While some get it as an option for sweet others get
it as a gift thing. The purchasers generally purchase the item without really
thinking and are impacted by taste/flavor and afterward by organization/brand.

Competitors

The principle contenders of Dairy milk in India are Nestle, Ferrero Rocher,
Amul chocolates and unbranded chocolate. The very good quality chocolates
(Bourneville and silk) likewise face rivalry additionally face contest from the
imported Swiss chocolates. In any case, probably the greatest benefit the dairy
milk has over its rivals is the brand steadfastness that it has. The amazing
publicizing, reach and openness have made it the highest point of brain brand in
the chocolate class.

Climate

The environment for the chocolate business and dairy milk specifically appears
to be exceptionally appealing in a nation like India. With the size of the market
being so huge alongside empowering class development the possibilities look
generally excellent. Since the item isn't occasional and the edge is likewise great
makes the environment for the business surprisingly better. With new
advancements coming up as far as item and bundling the market is as yet on a
development bend.

Collaborators

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As currently said Cadbury dairy milk deals with an enormous scope of retailers
and entire venders who make up the associates. Throughout the long term the
organization has banded together with different organizations like Adam
Philippines in 2001 so journal milk has a lot more extensive appropriation
network in the Philippines.

SEGMENTATION, TARGETING &POSITIONING

Segmentation

For over sixty years now, Cadbury has appreciated administrative role in the
Indian chocolate market to the degree that 'Cadbury' has turned into a
conventional name for chocolate items. Cadbury has driving brands in every
one of the portions viz bars (Dairy Milk, Crackle, Temptations), count lines (5
star, Milk Treat). Commercial center for any item is involved various sections
of customers, each with various requirements and needs. Market segmentation
can be defined in a number of ways such as:

 Demographic variables: - (for example Shoppers age gatherings, orientation,


material states pay and so forth…).Current Population of India - India, with
1,270,272,105 (1.27 billion) individuals are the second most crowded country
on the planet. With the populace development rate at 1.58%, India is anticipated
to have more than 1.53 billion individuals before the finish of 2030. Over half
of India's present populace is underneath the age of 25 and more than 65%
beneath the age of 35..

 Around 72.2% of the populace lives in exactly 638,000 towns and the rest
27.8% in around 5,480 towns and metropolitan agglomerations. So India is the
greatest market for Chocolate as far as populace. The way of life of shoppers
(for example their inclinations and exercises) the advantages which shoppers
search for in an item or on the events when the item may be consumed. Cadbury

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considers this multitude of elements while delivering a scope of items. It targets
different segments within the market, are as follows: -

 Break segment: – Items which are typically consume as a grabbed break and
regularly with tea and espresso, for instance Cadbury's Perk and Oreo Biscuits.

 Impulse segment: – These items are frequently buy without really thinking,
eating these and afterward. They incorporate item like Cadbury's Dairy Milk.

 Take home segment: – This portrays item that are regularly bought from
general stores, brought home consumed at a later stage. The cost of Cadbury
dairy milk is sensible and reasonable. So an individual doesn't have to figure
much prior to buying it, they can undoubtedly get it whenever they need to
purchase. The pay of an individual doesn't assume any significant part in it.
Cadbury dairy milk won't be highly impacted by the age distinctions. A wide
range of people groups like to buy the Cadbury dairy milk when they need to
get it.

Targeting

Beginning from 1905 the buyers of dairy milk have changed from kids to all
progress in years gatherings. At the point when Cadbury began its activity in
India their principle purchasers were youngsters and the adolescent who carried
chocolates to commend unique event. This restricted the market for Cadbury
dairy milk. This is an explanation that Cadbury emerged with the mission of
('kuch meetha ho jaye') to make dairy milk inseparable from sweet so it could
focus on all the age gatherings. In India it was an attitude that chocolates are for
kids and the grown-ups were more disposed towards to the regular desserts.
This mission designated them and saw an adjustment of the objective market for
the brand. Presently the objective market for dairy milk is each individual from
the family. Cadbury's Dairy milk pointed 100% of the time for the greater
chomp of the Indian market. It has been the market chief in the chocolate

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classification for a really long time. The principle objective of Cadbury's dairy
milk is extremely clear, contact the crowd by showing them their appearance.
Showing little satisfaction and lively minutes that we find in our everyday life is
valued by partaking in a chomp of Cadbury's Dairy milk and by adding an
enthusiastic touch to it, and has won the Indian crowd completely. They are
Positioning Diary milk as a fruitful option in contrast to the customary Indian
desserts in remarkable manner to trade out the rich practice of Indian
individuals related with pastries, birthday giving through Facebook, giving in
schools (fifteenth August and 26th Jan-13) and on birthday events, giving in
workplaces on birthday's and giving with relationships greeting card and after
wedding function.

Positioning

Cadbury Dairy Milk dominates at situating. Not exclusively can the chocolate
bars have various positions in view of which portion they are in, yet additionally
none of the positions damper the impacts of different positions! Youth see with
word Cadbury as an equivalent for chocolate, others consider it to be equivalent
words for sweet and love and rapture. In India it situated itself as
"unconstrained, unique, lighthearted, genuine minutes ('Mazza aa gaya') in the
underlying stage. However, later it attempted to situate itself as brand that is
inseparable from sweet ('Kuch meetha ho jaye'). The latest mission ('Shubh
Aarambh') attempts to take forward the underlying situating of dairy milk as an
option for the conventional sweet and positions itself as something that is
however promising as the sweet which seems to be by and large presented as
'bhog' to divine beings.

DISTRIBUTION NETWORK IN INDIA

Cadbury's brands are accessible in more than 1,000,000 outlets the nation over.
Cadbury is additionally zeroing in seriously on accomplishing conveyance

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value. However it requires some investment and work to construct, yet once
assembled, conveyance value is difficult to disintegrate. With innovation and
serious strain slice in it is becoming expanding hard for advertisers to hold a
novel item separation for extensive stretch. In an item and value equality
circumstance, the brand that sells more is the one that arrives at the biggest
number of clients. To tap this enormous potential Cadbury's conveyance
channels incorporate the assembling stockrooms where the chocolate creation
happens. This is trailed by distributer and then, at that point, trailed by
retaile .Due to 65 years of quality in India - has profound entrance 2,500
wholesalers; 550,000 retailers, 60 mid metropolitan (22%) clients. The
advanced exchange is taken care of independently.

CADBURY CASES UNDER CONSUMER PROTECTION ACT

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 Cadbury fined Rs 50,000 for chocolates with bugs

GUNTUR: Mondelez India Foods Private Ltd, the parent company of Cadbury
India, was fined by the Consumer Forum of Guntur for supplying bacteria-
contaminated chocolates to a consumer. Apart from paying a penalty of Rs 50,000
for causing mental agony, Mondelez has also been ordered to pay Rs 5,000 to the
complainant, Darla Anupama

Anupama, a resident of Brodipet, purchased two Cadbury Dairy Milk (roast


almond) chocolates from a local shop on July 17, 2016, and the family members
found the confectionery bitter when they tasted it and spat it out.

Anupama opened the second wafer and was shocked to find mould, which was
unpalatable. Anupama lodged a complaint to Mondelez through a mail and
attached the relevant photographs. A company representative immediately got in
touch with her and urged her not to blow up the issue. He also took the samples
of the chocolates

Anupama, however, went ahead and lodged a complaint with the Consumer
Forum on August 6 last year, as she felt betrayed and sought a relief of Rs 5 lakh
for the mental agony caused to her. The forum summoned both the manufacturer
and retailer. The retailer argued that he had no role in the quality of the product as
he sold a sealed product and the forum concurred with his version.

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Advocate for the manufacturer, on the other hand, argued that since the
complainant did not deposit samples of the spoilt chocolates, her complaint is not
maintainable. At the same time, the company did not deny the fact that the issue
had been raised by the complainant on its website and its representative having
visited the complainant's house and taking away the samples. Also, the
representative of the company who took the samples did not attend the forum on
multiple occasions.

same time, the company did not deny the fact that the issue had been raised by the
complainant on its website and its representative having visited the complainant's
house and taking away the samples. Also, the representative of the company who
took the samples did not attend the forum sittings on multiple occasions.

Taking all this into consideration, the forum, held Mondelez responsible for
deficiency in service and directed it to pay Rs 50,000. It also ordered the firm to
pay Rs 5,000 towards costs of the complainant and Rs 90 for the cost
of two chocolates .

 CADBURY INDIA LID. V. L.NIRANJAN

Ms Cadbury India Limited, petitioner herein, was the opposite party before the
District Forum.Respondent is not present despite service. Ordered to be proceeded
ex-parte. Allegedly, respondent purchased chocolate on 09.1.2006 from Ms Top
Stores, No.54, 15th Cross, 100 Feet Road, J.P. Nagar, Bangalore. The product was
packed in August2005 and it was to be consumed within nine months from the
date of manufacture.

On opening it, it was found that the chocolate contained worms and fungus inside
the pack. Some of the family members of the complainant who had consumed the
chocolate, had vomiting sensation after looking at the worms coming out of the
chocolate.

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Hence, the complaint was filed before the District Forum.

Before the District Forum, on being served petitioner put in appearance and took t
stand that it was a reputed multi-national company engaged in the business of
manufacture and sale of chocolate and sugar confectionary for over fifty years;
that it manufactured premium quality chocolates by adopting most stringent
manufacturing practices to the extent that the products are completely untouched
by the human hands to ensure that the products are devoid of any external
contamination and at all times the company has complied with various applicable
food legislations such as the Prevention of Food Adulteration Act and the
Standards of the Weights and Measures Act; that the complaint was liable to be
dismissed on the ground of non-joinder of necessary parties as the respondent had
failed to implead Ms Top Stores from whom the chocolates were purchased by
him. The allegations that the worms and fungus was found on the chocolate, were
denied as the alleged procedure could not occur during the manufacturing process;
that there were 6,50,000 retail outlets that supply the products and, therefore, due
to oversight and any inadvertence or negligence on the part of the retailers, such
incidents may occur at the retail outlets; for the negligence of the retailers, the
manufacturer cannot be held responsible. Further stand taken by the petitioner was
that on all the packets, it is declared to store the product in cool, hygienic and dry
place; if hygienic storage practices are not followed and if the products are stored
close to sources of infestation, it is quite possible that the alleged infestation may
occur at the premises of the retailer; that the manufacturer could not be held liable
for any fault of the respondent in providing the service. Thus, denying all the
allegations made in the complaint, it was prayed that the complaint may be
dismissed.

District Forum held that the retailer was a proper party but not a necessary party.
The complaint was allowed and the petitioner was directed to pay a compensation
of Rs.10,000/- together with costs of Rs. 1,000/-.

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Petitioner being aggrieved filed the appeal before the State Commission which has
been dismissed by the impugned order.

The shop from where the chocolates were purchased has not been made a
party/respondent.

The conditions under which the chocolates were stored by the shop-keeper has not

come on the record. Judicial notice can be taken of the fact that perishable items
like chocolate have to be kept at a certain temperature so that they remain fit for
consumption . The allegation in complaint is that one of the chocolates was found
to be infected with fungus and a worm was embedded in the chocolate. This is not
a manufacturing defect. Chocolate can be infected by fungus only if it is not kept
at a controlled temperature. Similarly, worm in the chocolate can come if the
chocolate is not kept at a controlled temperature. It was not a manufacturing
defect for which the petitioner could be made liable. It was at the most a case of
defect in service for which the shop-keeper who sold the chocolate could be held
liable but unfortunately the shop-keeper has not been made a party/respondent.

For the reasons stated above we accept the revision petition and set
aside the orders of the fora below. Complaint is ordered to be dismissed.

In case any amount has already been paid to the respondent, the same be not
recov-ered. No costs.

M/S. CADBURY INDIA L... V. GRAHAK PARISHAD & AND...


Pronounced on 24 MARCH, 2015th ORDER PER JUSTICE K.S.
CHAUDHARI, PRESIDING MEMBER

This revision has been filed by the petitioner against order dated 24.6.2009 passed
by State Commission in Appeal No. 1151 of 2007- Cadbury India Ltd. & Anr. Vs.

29
Grahak Parishad & by which while dismissing appeal with cost of Rs. 5,000/-,
order of the District Forum An.; allowing complaint was upheld.

Brief facts of the case are that complainant No. 2/respondent No. 2 purchased one
pack of from Harisons Department on 14.1.2004 manufactured by opposite party

No. Cadburys Resins 1/petitioner No. 1. The chocolate was purchased in a packed
and sealed polythene pack on which manufacturing date was shown as May, 2003
and expiry date was shown as May, 2004. It was, further, submitted that
complainant purchased Cadbury for his children and when paper box cover was
opened, he found in-Unasea Lauvuy 101 ins onlinen allu wuen paper vox wover
was openeu, ue lounu m-sects inside the sealed pack. Complainant immediately
contacted opposite party No. 1 officers who sent representatives, saw chocolate
and intimated to the complainant that they will inform to Technical Department
about this fact. Opposite party No. Is, local distributor, offered complainant one
box full of different kind of Cadbury chocolates which he refused to accept. It was
further submitted that Cadbury manufactured by opposite party No. 1 was
injurious to health, life and safety of people. Complainant No. 1 /respondent No. 1
is registered Consumer Society who works for protection of consumers. Alleging
deficiency on the part of opposite party, complainant filed complaint before
District Forum. Opposite party resisted complaint and denied any responsibility
and submitted that Consumer Fora had no jurisdiction to entertain the complaint.
It was further submitted that complainant has not produced any proof of purchase
of aforesaid chocolate. In the manner shown in the complaint, complainant has not
followed procedure for sample testing and has not impleaded Ms. Harisons Stores
as a party from whom Cadbury is said to have been purchased. It was, further,
submitted that insects grow in 45 days and they do not survive for more than 3-4
days and in such circumstances, insects might have developed in the shop and
prayed for dismissal of complaint. Learned District Forum after hearing both the
parties, allowed complaint and directed opposite parties to pay Rs. 25,000/- to

30
complainant No. 2 and Rs. 50,000/- to be deposited in Consumer Welfare Fund
and further directed to pay Rs. 10,000/- as cost of litigation. Appeal filed by
opposite party was dismissed by Learned State Commission vide impugned order
against which this revision petition has been filed.None appeared for respondents
even after service and they were proceeded exparte. Heard Learned Counsel for
petitioner and perused record. Learned Counsel for petitioner submitted that on
account of non-impleading alleged

Store from where Cadbury was purchased and non-proving purchase of Cadbury,
Learned District Forum committed error in allowing complaint and Learned State
Commission further committed error in dismissing appeal on the basis of
judgment which has been set aside, hence, revision petition be allowed and
impugned order be set aside and complaint be dismissed.

Learned State Commission has mentioned in para 12 of the order that complainant
has not produced any bill pertaining to purchase of Cadbury chocolate. It is also
not disputed that concerned Store from where Cadbury was purchased has not
been im-pleaded as a party. Learned State Commission presumed purchase of
Cadbury from Harisons Stores without any basis and in the absence of proving
purchase of Cadbury from Harisons Stores and non-impleadment of Store as
opposite party, complaint was not maintainable because Cadbury was
manufactured in May, 2003 and complaint alleged purchase of Cadbury on
14.1.2004 and in such circumstances, no liability can be fastened on the
manufacturer on account of insects in the Cadbury as insects cannot survive for
such a long period if they developed before sale by petitioner.

Chocolates can be infected by fungus only after it is not kept at a


controlled temperature. Non-production of bill for purchase of Cadbury may be on
two counts; firstly, complainant might not have purchased Cadbury from Harisons
Stores and might have received it as a gift and secondly, he might have purchased

31
it long back before opening it and might not have kept at controlled temperature
on account of which insects developed in the Cadbury.

Learned State Commission has placed reliance on judgment reported in IV (2005)

CPJ 584- and dismissed appeal on 24.6.2009Rajnesh R. Swami & Ors. Vs.

Cadbury India Ltd. & Ors. whereas aforesaid judgment had already been set aside
by this Commission in FA/510/2005- by order dated 30.4.2009. Thus, it
becomesCadbury India Ltd. Vs.Rajanesh R. Swamy & Ors. clear that Learned
State Commission placed reliance on judgment which had already bene set aside
before passing judgment by the State Commission. In this judgment, Cadbury
India Ltd. & Ors.

whereas aforesaid judgment had already been set aside by this Commission in

FA/510/2005- by order dated 30.4.2009. Thus, it becomesCadbury India Ltd. Vs.

Rajanesh R. Swamy & Ors.clear that Learned State Commission placed reliance
on judgment which had already bene set aside before passing judgment by the
State Commission. In this judgment, this Commission further observed as under:

Finally, we are unable to see why the impugned order does not deal at all with the
role and liability of the retail dealer of the chocolates in question (opposite party
no. 2 before the State Commission and respondent no. 3 here) for his negligence
in service, which is palpable in the facts of the case.

Cadbury’s Fight- Back

Project Vishwas'- "Steps to guarantee quality and recover the certainty"


Following the debate intrusion in its chocolates, Cadbury India Ltd revealed
'Errand Vishwas', a course of action including movement and retail channels to

32
ensure the idea of its things. The association's gathering of significant worth
control chiefs, close by around 300 arrangements staff, checked 50,000 retail
out outlets in Maharashtra and supplanted all problematic stocks with prompt
impact. The Vishwas program was planned to assemble mindfulness among
retailers on capacity necessities for chocolates, give help with further
developing stockpiling conditions and reinforce bundling of the organization's
scope of items. Cadbury diminished the quantity of chocolates in its mass
parcels to 22 bars from the current 60 bars. These aided stockists show and sell
the items "securely and cleanly" 190,000 retailers in key states were covered
under this mindfulness program.

Cadbury Singing Sweetly Again

Everything is great that closures well. What's more for Cadbury's India, nothing
can be better than Regaining Back the Consumer Confidence. On account of
fast activity taken to recuperate the harm done by the worm discussion like
Operation Vishwas, embracing new bundling and gigantic publicizing with Mr.
Amitabh Bachchan as their image envoy, Cadbury's recovered its portion of the
overall industry. Cadbury India named administration consultancy firm AT
Kearney to attract up a methodology to control costs in a few regions, including
obtaining of unrefined substances and bundling. This was somewhat a result of
the worms' contention over a year prior. In addition to other things, it changed
the coverings for its Cadbury Dairy Milk brand and presented better coolers.
The consultancy firm will likewise check out the obtaining of immediate and
aberrant materials like revising with providers for longer term agreements and
seller the board. Different expenses (aberrant costs) like travel expenses and
inns were additionally being contemplated. At the end of the day, Cadbury is
attempting to diminish the expense per stock keeping unit (SKUs, or packs).The
point was to further develop efficiencies.

HOW THEY OVERCOME THEIR FAILURES

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To overcome failure

 Cadbury trained and educated their salesperson, so they can effectively


deliver their products with the help of effective communication.
 Cadbury introduced new packaging with new flavours.
 They imported new machinery so to show consumers that they are taking
extra care of workplace hygiene.
 They positioned their products in the minds of the consumer through
effective advertisement.
 Their purple packaging showed the signs of love, this played a major role in
their comeback.

RESEACH METHODOLOGY

Sources of secondary data

Used to obtain information about Cadbury and its competitor history, current
issues, policies, procedures etc, wherever required.

• Internet

• Magazines

• Newspapers

RESULT

The review was completed by to discover the span and prominence of Cadburys
in India. The chocolate customers were posed inquiries like the chocolate brand
that they regularly eat, and the elements that they search for in a chocolate and

34
so forth were not safe and the trust of consumers was broken . cadbury
Following the debate intrusion in its chocolates, Cadbury India Ltd revealed
'Errand Vishwas', a course of action including movement and retail channels to
ensure the idea of its things. With the help of vishwas the Cadbury gained the
reputation and trust back and present itself as a best competing brand .

Recommendations:

 ~ Maintain supremacy in chocolate and confectionary, as well as market


supremacy in brown beverages.
 Do strong advertising in media such as the internet or tv which allow a
great volume of low-cost advertising. The internet is a great location to
sell items, even if they are sweet.
 Provides Cadbury to reach a new consumer group and allows for
increased sales owing to a wider total consumer group.
 The primary growth drivers will be new channels such as gifting, kid
connections, and value for money offerings.
 Over the next few years, increase sales volume by at least 20% every
year.
 Achieve the aim of having the greatest production site in the world for
Dairy Milk and Eclairs at Cadbury Schweppes.

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 Every year, a big new product should be introduced, such as additional
Dairy Milk flavors.

CONCLUSION

From the above project we can conclude that Cadbury has faced so many
challenges for maintaning the quality of the products but failed many times as
consumers were not happy with the products of Cadbury they also filed
complaints against Cadbury in the courts but however Cadbury returned in the
market with better product and better marketing strategy by which Cadbury
gained their reputation back as we can say that : "Business has just two
capacities - Innovation and Marketing" And Cadbury has represented the
proverb in letter as well as in soul.

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BIBLIOGRAPHY

 http://www.cadburyindia.com
 http://www.aphrodite chocolates.co.uk/history_chocolate.htm
 . http://www.cadbury.co.nz/carnival/index.htm
 http://www.packaging-technology .com/…/cadbury4.html
 http://www.chocolatereview.co.uk
 http://en.wikipedia.org/wiki/preference

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