PREFACE

Marketing should not be looked upon in a vacuum or in isolation. It is an

essence taking a view of the whole business organization and its ultimate objective
concern for marketing must penetrate all areas of the enterprise. Market survey in
today’s competitive world is a must for every organization.

This project is a study of market potential of Cadbury . The rational behind this
particular study is to find out the present market scenario of various brands & to find
out the corporate need and perception. It was a pleasurable experience to conduct a
research on behalf of Cadbury pertaining to the study of the Automobile Sector.

Conclusion and there by recommendation has been arrived at by proper and

justified interpretation of the result derived from the above said analytical tools and
techniques.

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 ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate enough to get
support from a large number o persons. I wish to express my deep sense of gratitude to all those who
generously helped in successful completion of this report by sharing their invaluable time and
knowledge.

It is my proud and previledge to express my deep regards to Respected , Head of Department

Dr.Pramesh Gautam, Miss. Neha Dubey Department of Business Management , Swami Vivekanand
Institute of Technology, College Sagar for allowing me to undertake this project.

I feel extremely exhilarated to have completed this project under the able and inspiring
guidance of Miss. Neha Dubey He rendered me all possible help me guidance while reviewing the
manuscript in finalising the report.

I also extend my deep regards to my teachers , family members , friends and all those whose
encouragement has infused courage in me to complete to work successfully.

(SUKHMAL JAIN)
B.B.A IST Semester

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 DELCLARATION BY THE CANDIDATE
Date :

I declare that the project report titled " CADBURY " on Market Segmentation is nay own

work conducted under the supervision of Miss.Neha Dubey Department of Business Management ,

Swami Vivekanand Institute of Technology, College Sagar To the best of my knowledge the report

does not contain any work , which has been submitted for the award of any degree , anywhere.

(SUKHMAL JAIN)
B.B.A IST Semester

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 CERTIFICATE
The project report titled " CADBURY " been prepared by Mr.Sukhmal Jain BBA I nd

Semester , under the guidance and supervision of Miss.Neha Dubey for the partial fulfillment of the

Degree of B.B.A.

Signature of the Signature of the Signature of the

Supervisor Head of the Department Examiner

CONTENTS
PAGE NO.
TOPIC
TITLE

1. Preface

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 2. Acknowledgement

3. Declaration of the Candidate

4. Certificate

5. Introduction of Cadbury

6. History of Cadbury

7. Scope of the Study

8. Limitation of the Study

9. Research Methodology

10 Market Segmentation

11 Company Comparison

12 Data analysis & Interpretation

13 Swot Analysis of Cadbury

14 Findings

15 Suggestions & Recommendation

16 Conclusion

17 Bibliography

18 Questionnaires

INTRODUCTION
In this research I have survey the product performance and buying

behaviour of two famous brands of chocolates – Cadbury , which are consumed

by people of all ages. During this research I have interacted with people of

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“Sagar”. After this research I came to know how people perceives these

products on the variables like price, quality, advertisement, satisfaction, taste,

packaging, brand loyalty etc. I also came to know which particular brand of

chocolate is most preferred by people of different age groups. In this research I

have surveyed that how frequently and how much chocolate they consume,

whether they buy small, big or family pack. Trend of ongoing changes in their

likings has been shown in the report. In this report I have tried to explain the

entire research and facts product wise.

HISTORY

With the entry of multinationals and home companies sprucing up their

act, the confectionery market is booming. McKinsey & Co. has estimated the
confectionery industry to touch a whopping Rs. 6 500 crore by the year 2008.
Till the eighties, the chocolate market was small and the product category itself
was fuzzy. In the eighties, Cadbury’s - the virtual monopolist – had decided to
focus its efforts on making chocolates a distinct category with an identity of its

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own. And the marketer had sharply positioned its product at children to do that.
Hence, chocolates bore an “Only for kids” tag, and kept adults at bay. By the
end of the eighties, Cadbury’s still ruled the roost with over 80 percent market
share. And though several brands - like Amul and Campco - tried to break into
the market, none of them had succeeded in shaking the leader’s grip. In fact,
Cadbury’s had become a brand virtually generic to chocolates. Then chocolates
were used to reward and reinforce positive behaviour and hence were
categorised as a luxury reserved for special occasions. This was, a stark contrast
to the west where chocolates were snacked on, eaten as mini meals or just to
suppress pangs of hunger. But constant working by players like Cadbury’s (re-
launch of Cadbury’s Dairy Milk targeting adults and as a casual any-time buy)
and Cadbury towards exploding the myth that chocolates are meant for children
only, has resulted in the segment booming.

Trends in the Industry

· With socio-economic changes rapidly taking place, the young and not so
young population will lead a new life style and chocolate eating is definitely
going to be widespread and acceptable.
· In the industry, both population and family incomes as well as urbanisation are
on the increase.
· There has been a significant growth in the middle class, with 5.8 million
people having upgraded to the quoted middle class.
· There is quantified data on FMCG usage having increased (NRS-VI & IRS’98
figures) Thanks to the above reasons the growth in the chocolate market is
estimated to be at 22% in 2001. But marketers in the industry are looking
forward to a much higher growth rate, as India’s per capita consumption of
chocolates is only 15 Gms. Versus 6 Kg in the west.

The Indian Chocolate market can be sliced into four parts.

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1. Moulded Chocolate Segment - comprising slab chocolates like Dairy milk
chocolates, etc. These are made by pouring the ingredients into moulds.
2. Countline Segment - comprising bars like 5 star, Bar One, Perk, Kit Kat, etc.
These have ingredients other then chocolate and are usually Bar shaped, making
for chunky bites.
3. Choco-Panned Segment - comprising chocolate forms like
Butterscotch, Nutties, Tiffins, etc. Panned variety has different
cores/centers which are covered with a layer of chocolate.
4. Sugar-Panned Segment - comprising chocolate forms such as Gems,
Chocolate eclairs, etc. These generally have a sugar coating on the outside.

SCOPE OF THE STUDY

As learning is a human activity and is as natural, as breathing. Despite of
the fact that learning is all pervasive in our lives, psychologists do not agree on
how learning takes place. How individuals learn is a matter of interest to
marketers. They want to teach consumers in their roles as their roles as
consumers. They want consumers to learn about their products, product
attributes, potential consumers benefit, how to use, maintain or even dispose of
the product and new ways of behaving that will satisfy not only the consumer’s

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needs, but the marketer’s objectives. The scope of my study restricts itself to the
analysis of consumer preferences, perception and consumption of Cadbury and
Cadbury Chocolates. There are many other brands of chocolates available but
my study is limited to two major players of chocolates leaving behind the
others. The scope of my study is also restricts itself to Sagar region only.

OBJECTIVES OF THE STUDY

This project is based on the comparative study consumer behavior
towards Cadbury and Cadbury chocolates. Objectives of the study are:
 The other objective is to know about the customer satisfaction level
associated with the product and the customer preference level.  To increase
customer satisfaction and recapture the market share by fulfilling the customer
needs.

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 To study the factors affecting the consumption pattern.

LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible
aspect of the topic was kept in mind. Nevertheless, despite of fact constraints
were at play during the formulation of this project. The main limitations are as
follows:
 Due to limitation of time only few people were selected for the study. So the
sample of consumers was not enough to generalize the findings of the study.

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 The main source of data for the study was primary data with the help of self-
administered questionnaires. Hence, the chances of unbiased information are
less.
 People were hesitant to disclose the true facts.
 The chance of biased response can’t be eliminated though all necessary steps
were taken to avoid the same.

RESEARCH METHODOLOGY
As mentioned earlier, the objective of the study is to formulate a
Marketing Strategy for any new entrant in the Indian Chocolate Industry. While
recommending the said strategy detailed information from both primary and
secondary sources was collected and analysed. This included:

Primary Sources

Four level primary information collections were undertaken.

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1. To analyse buying behaviour and in order to gain an insight into the buyer
need-satisfaction level, a questionnaire was formulated and administered among
80 people. The profile of the respondents was as follows:
1. Consumers of chocolates – 12 years + in SAGAR. This was
since; chocolate consumption was witnessed amongst all age
groups.
2. A distributor was also interviewed so as to get pertinent information
regarding the most important ‘P’ of FMCG marketing – Place.
3. Extensive interviews were conducted with retailers in the SAGAR area.
These included pan shops, grocery shops, bakeries,
departmental stores, etc. They provided information on various facts of
chocolate distribution such as Point-of –purchase material (dispensers etc.),
infrastructure problems, critical informational regarding the policies of the
present players in the market, etc.

Secondary Sources

A number of secondary sources of information were used. These were:·

Information: Industry statistics, problems facing the industry, future outlook,
etc. Also measures being adopted for cocoa production development.
· Internet websites Of Cadbury’s, and indiainfoline.com, askjeeves.com
· Extensive use of secondary information in the form of
magazines/journals/newspapers clippings, such as Business World, Business
Today, Business India, A&M, Brand Equity, Economic Times, etc.

The methodology adopted was as follows:

 Industry Scenario Sketch (utilizing secondary information)

 Extensive Interviews held with Primary/Secondary Sources
(Companies/Chocolate manufacturers Association).
 Extensive retailer interviews in SAGAR Area
 Formulation and administration of a questionnaire
 Formulation of the Recommended Strategy on the basis of the above
mentioned Primary and Secondary Information.

OBJECTIVES OF THE STUDY:

1. To get familiar with their marketing strategies separately.

2. To view the segments being targeted by these brands in the market.
3. Up to what extent do the public respond to their products?
4. To prepare a marketing plan for any brand that is planning to

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enter the India Chocolate Market.
5. To be a relevant guide for any brand launch in India.

MARKET SEGMENTATION

The very word makes your mouth water.

Chocolate is more than just a food: it’s a state of mind.

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 Chocolates
Chocolates! Chocolates!
Every body has a liking for them, be they in the form of bar
Or a tiny little gem,
Or shaped like a rectangle,
Or a sphere, a brick or an éclair.
For chocolate lovers it is fun,
To have them during rain, breeze or sun.
They are white and brown in color,
And taste sweet and bitter
Some have them in a glass of cold coffee, or in the form of a toffee.
Some eat them when they are sad
Some relish them when they are happy or have sweet dreams,
But I feel, to have chocolates
We don’t need a reason,
‘Cause we can have it
Anytime, any season!

chocolate:
The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in
Central America, who first enjoyed “chocolati” a much-prized spicy drink made from
roasted cocoa beans.
Throughout its history, whether as cocoa or drinking chocolate beverage or confectionary
treat, chocolate has been a much sought after food.
The Aztec empire
“Chocolate”(in the form of a luxury drink) was consumed in large quantities by the
aztecs: the drink was described as “ finely ground, soft, foamy, reddish, bitter with chilli
water, aromatic flowers, vanilla and wild bee honey.

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The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain
supplies of cocoa beans from “ tribute” or trade
Don Cortes
The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a
powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made
captain general and governor of Mexico.
When he returned to Spain in1528 he loaded his galleons with cocoa beans and
equipment for making the chocolate drink. Soon “chocolate” became a fashionable drink
enjoyed by the rich in Spain.
Chocolate across Europe
An Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. He
had visited Central America and seen how the Indians prepared the cocoa beans and how
they made the drink, and by 1606 chocolate was well established in Italy.
History of chocolate:
The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in
Central America, who first enjoyed “chocolati” a much-prized spicy drink made from
roasted cocoa beans.
Throughout its history, whether as cocoa or drinking chocolate beverage or confectionary
treat, chocolate has been a much sought after food.
The Aztec empire
“Chocolate”(in the form of a luxury drink) was consumed in large quantities by the
aztecs: the drink was described as “ finely ground, soft, foamy, reddish, bitter with chilli
water, aromatic flowers, vanilla and wild bee honey.
The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain
supplies of cocoa beans from “ tribute” or trade
Don Cortes
The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a
powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made
captain general and governor of Mexico.
When he returned to Spain in1528 he loaded his galleons with cocoa beans and
equipment for making the chocolate drink. Soon “chocolate” became a fashionable drink
enjoyed by the rich in Spain.
Chocolate across Europe
An Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. He
had visited Central America and seen how the Indians prepared the cocoa beans and how
they made the drink, and by 1606 chocolate was well established in Italy.

Drinking chocolate
The secret of chocolate was taken to France in 1615, when Anne, daughter of Phillip 2 of
Spain married king Louis 13 of France
The French court enthusiastically adopted this new exotic drink, which was considered
to have medicinal benefits as well as being a nourishing food. Gradually the custom of
drinking chocolate spread across Europe, reaching England in the 1650’s
First chocolate for eating
Up until this point all chocolate recipes were based on plain chocolate. It was an English
doctor, sir Hans’s sloane, who- after traveling in south America- focused on cocoa and
food values, bringing a milk chocolate recipe back to England.
The original Cadbury milk chocolate was prepared to his recipe.

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History:
The earliest record of chocolate was over fifteen hundred years ago in the central
America rain forests, where the tropical mix of high rain fall combined with high year
round temperatures and humidity provide the ideal climate for cultivation of the plant
from which chocolate is derived, the cacao tree.
“ Chocolate is made from the cocoa bean, found in pods growing from the trunk and
lower branches of the cacao tree, Latin name “ theobroma cacao” meaning “ food of the
gods”
Cacao was corrupted into the more familiar “ cocoa” by the early European explorers.
The Maya brewed a spicy, bittersweet drink by roasting and pounding the seeds of the
cacao tree with maize and capsicum peppers and letting the mixture ferment. This drink
was reserved for use in ceremonies as well as for drinking by the wealthy and religious
elite; they also ate cacao porridge.
The Aztecs, like the Mayans, also enjoyed cacao as a beverage fermented from the raw
beans, which again featured prominently in ritual and as a luxury available only to the
very wealthy. The Aztecs called this drink xocolatl, the Spanish conquistadors found this
almost impossible to pronounce and so corrupted it to the easier “ chocolat” the English
further changed this to chocolate.
The Aztec’s regarded chocolate as an aphrodisiac and their emperor, Montezuma
reputedly drank it fifty times a day from a golden goblet and is quoted as saying of
xocolatl: “ the divine drink, which builds up resistance and fights fatigue. A cup of this
precious drink permits a man to walk for a whole day without food”
Chocolate in Europe
Xocolatl! or chocolat or chocolate as it became known, was brought to Europe by
Cortez, by this time the conquistadors had learned to make the drink more palatable to
European tastes by mixing the ground roasted beans with sugar and vanilla ( a practice
still continued today), thus offsetting the spicy bitterness of the brew the Aztec’s drank.
The first chocolate factories opened in Spain, where the dried fermented beans brought
back from the new world by the Spanish treasure fleets were roasted and ground, and by
the early 17th century chocolate powder – from which the European version of the drink
was made- was being exported to other parts of Europe. The Spanish kept the source of
the drink- the beans- a secret for many years, so successfully in fact, that when English
buccaneers boarded what they thought was a Spanish “ treasurer galleon” in 1579, only to
find it loaded with what appeared to be “ dried sheep’s droppings, they burned the whole
ship in frustration. If only they had known, chocolate was so expensive at that time, that
it was worth it’s weight in silver ( if not gold), chocolate was treasure indeed !
Within a few years, the cocoa beverage made from the powder produced in Spain had
become popular throughout Europe, in the Spanish Netherlands, Italy, France, Germany
and – in about 1520 – it arrived in England.

The first chocolate house in England opened in London in 1657 followed rapidly by
many others. Like the already well established coffee houses, they were used as clubs
where the wealthy and business community met to smoke a clay pipe of tobacco,
conduct business and socialize over a cup of chocolate.
Back to the America’s
Event’s went full circle when English colonists carried chocolate (and coffee) with them
to England’s colonies in north America. Destined to become the united states of America
and Canada, they are now the worlds largest consumers – by far – of both chocolate and
coffee, consuming over half of the words total production of chocolate alone.
The Quakers

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The Quakers were, and still are, a pacifist religious sect, an offshoot of the puritans of
English civil war and pilgrim fathers fame and a history of chocolate would not be
complete without mentioning their part in it. Some of the most famous names in
chocolate were Quakers, who for centuries held a virtual monopoly of chocolate making
in the English speaking world – fry, Cadbury and row tree are probably the best known.
Its probably before the time of the English civil war between parliament and king Charles
1st that the Quaker’s who evolved from the puritans, first began their historic association
with chocolate. Because of their pacifist religion, they were prohibited from many normal
business activities, so as an industrious people with a strong belief in the work ethic (like
the puritans), they involved themselves in food related businesses and did very well.
Baking was a common occupation for them because bread was regarded as the biblical
“staff of life”, and bakers in England were the first to add chocolate to cakes so it would
be a natural progression for them to start making pure chocolate. They were also heavily
involved in breakfast cereals but that’s another story.
What is certain is that the fry, row tree and Cadbury families in England among others,
began chocolate making and in fact Joseph fry of fry &sons (founded 1728 in Bristol,
England) is credited with producing and selling the world’s first chocolate bar. Fry’s have
now all but disappeared (taken over by Cadbury) and row tree have merged Swiss
company Cadbury, to form the largest chocolate manufacturer in the world. Cadbury have
stayed with chocolate production and are now, if not quite the largest, probably one of the
best-known chocolate makers in the world.
Chocolate as we know it
The first mention of chocolate being eaten in solid form is when bakers in England began
adding cocoa powder to cakes in the mid 1600’s. Then in 1828 a Dutch chemist, Johannes
van houten, invented a method of extracting the bitter tasting fat or “cocoa butter” from
the roasted ground beans, his aim was to make the drink smoother and more palatable,
however he unknowingly paved the way for solid chocolate as we know it.
Chocolate as we know it today first appeared in 1847 when fry & sons of Bristol,
England – mixed sugar with cocoa powder and cocoa butter (made by the van houten
process) to produce the first solid chocolate bar then in1875 a Swiss manufacturer,
Daniel peters, found a way to combine (some would say improve, some would say ruin)
cocoa powder and cocoa butter with sugar and dried milk powder to produce the first

COMPANY COMPARISON
Cadbury’ India is a subsidiary of Cadbury’ S.A. of Switzerland. The company
insists on honesty, integrity and fairness in all aspects of its business and
expects the same in its relationships.

Cadbury India- Presence Across India

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Beginning with its first investment in Moga in 1961, Nestlé’s regular and
substantial investments established that it was here to stay. In 1967, Nestlé set
up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea
grown in the area into soluble tea.
The Nanjangud factory (Karnataka), became operational in 1989, the Samalkha
factory (Haryana), in 1993 and in 1995 and 1997, Nestlé commissioned two
factories in Goa at Ponda and Bicholim respectively. Nestlé India is now putting
up the 7th factory at Pant
Nagar in Uttaranchal.

Cadbury’ Story
Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first
product was “Farine Lactée Nestlé”, an infant cereal specially formulated by Henri Nestlé to
provide and improve infant nutrition. From its first historic merger with the Anglo-Swiss
Condensed Milk Company in 1905, Nestlé has grown to become the world’s largest and most
diversified food Company, and is about twice the size of its nearest competitor in the food
and beverage sector. Nestlé’s trademark of birds in a nest, derived from Henri Nestlé’s
personal coat of arms, evokes the values upon which he founded his Company. Namely, the
values of security, maternity and affection, nature and nourishment, family and tradition.
Today, it is not only the central element of Nestlé’s corporate identity but serves to define the
Company’s products, responsibilities, business practices, ethics and goals. In 2004, Nestlé
had around 247,000 employees worldwide, operated 500 factories in approx. 100 countries
and offered over 8,000 products to millions of consumers universally. The Company’s
transparent business practices, pioneering environment policy and respect for the
fundamental values of different cultures have earned it an enviable place in the countries it
operates in. Nestlé’s activities contribute to and nurture the sustainable economic
development of people, communities and nations. Above all, Nestlé is dedicated to bringing
the joy of ‘Good Food, Good Life’ to peoplethroughout their lives, throughout the world.

Cadbury’ Brands
 Milk Products & Nutrition
 Beverages
 Prepared Dishes and Cooking Aids
 Chocolates & Confectionary

MILK PRODUCTS AND NUTRITION:

NESTLÉ EVERYDAY Dairy Whitener
NESTLÉ EVERYDAY Slim
NESTLÉ EVERYDAY Ghee
NESTLÉ MILKMAID
NESTLÉ Fresh 'n' Natural Dahi
NESTLÉ Fresh 'n' Natural Slim Dahi
NESTLÉ Jeera Raita

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NESTLÉ MILKMAID Fruit yoghurt
NESTLÉ Milk
NESTLÉ Slim Milk

BEVERAGES:
NESCAFÉ CLASSIC
NESCAFÉ SUNRISE
NESTLÉ MILO
NESCAFÉ 3 in 1
NESCAFÉ Koolerz

PREPARED DISHES AND COOKING AIDS

MAGGI 2-MINUTE Noodles
MAGGI Vegetable Atta Noodles
MAGGI Dal Atta Noodles
MAGGI Rice Noodles Mania
MAGGI Sauces
MAGGI Pizza Mazza
MAGGI Healthy Soups
MAGGI Healthy Soup- Sanjeevni
MAGGI MAGIC Cubes

CHOCOLATES & CONFECTIONARY

NESTLÉ KIT KAT
NESTLÉ KIT KAT LITE
NESTLÉ MUNCH
NESTLÉ MUNCH POP CHOC
NESTLÉ MILKYBAR
NESTLÉ MILKYBAR CHOO
NESTLÉ BAR-ONE
NESTLÉ FUNBAR
NESTLÉ Milk Chocolate
POLO
POLO Powermint
NESTLÉ Eclairs

CADBURYKITKAT

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Are crisp wafer fingers covered with choco layer? NESTLÉ KIT KAT has a
unique finger format with a ‘breaking' ritual attached to it.
NESTLÉ KIT KAT is one of the most successful brands in the world and every
year over 12 billion NESTLÉ KIT KAT fingers are consumed around the globe.

CADBURY MUNCH

NESTLÉ MUNCH is wafer layer covered with delicious choco layer. NESTLÉ
MUNCH is so crisp, light and irresistible that you just ‘can't stop Munching.'
NESTLÉ MUNCH is the largest selling SKU in the category!

CADBURY MILKY BAR:

NESTLÉ MILKYBAR is a delicious milky treat, which kids love. Relaunched

in January 2006 with a Calcium Rich recipe, NESTLÉ MILKYBAR is a
favorite with parents to treat their kids with.

CADBURY BAR-ONE

is a luscious nougat and caramel with delicious choco layer. NESTLÉ BAR-
ONE constantly reminds you that it is ‘Time for Action'.

CADBURY Milk Chocolate:

NESTLÉ Milk Chocolate is a milk chocolate with a delicious taste. Kids just love it!

CADBURY
How Cadbury Chocolate is made

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Milk chocolate for eating was first made by Cadbury in 1897 by adding milk
powder John paste to the dark chocolate recipe of cocoa mass, cocoa butter and
sugar. By today's standards this chocolate was not particularly good: it was
coarse and dry and not sweet or milky enough for public tastes. There was a
great deal of competition from continental manufacturers, not only the
French,but also the Swiss, renowned for their milk chocolate. Led by George
Cadbury Junior, the Bournville experts set out to meet the challenge. A
considerable amount of time and money was spent on research and on new plant
designed to produce the chocolate in larger quantities. A recipe was formulated
incorporating fresh milk, and production processes were developed to produce a
milk chocolate 'not 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 flavour and smooth creamy
texture, was ready to challenge the Swiss domination of the milk chocolate
market. By 1913 Dairy Milk 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 it has held ever since.

5 STAR

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the second largest after Cadbury Dairy Milk with a market share of 14%,
Cadbury 5 Star moves from strength to strength every year by increasing its
user base. Launched in 1969 as a bar of chocolate that was hard outside with
soft caramel nougat inside, Cadbury 5 Star has re-invented itself over the years
to keep satisfying the consumers taste for a high quality & different chocolate
eating experience. One of the key properties that Cadbury 5 Star was associated
with was its classic Gold colour. And through the passage of time, this was one
property that both, the brand and the consumer stuck to as a valuable
association. More recently, to give consumers another reason to come into the
Cadbury 5 Star fold, Cadbury 5 Star Crunchy was launched. The same delicious
Cadbury 5 Star was now available with a dash of rice crispies.
PERK

Cadbury launched Perk in 1996. With its light chocolate and wafer construct,
Cadbury Perk targeted the casual snacking space that was dominated primarily
by chips & wafers. With the rise of more value-for-money brands in the wafer
chocolate segment, Cadbury Perk unveiled two new offerings - Perk XL and
XXL. In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an
'improved wafer', Perk became even more irresistible.

CELEBRATIONS

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Cadbury Celebrations was aimed at replacing traditional gifting options like
Mithai and dry- fruits during festive seasons. Cadbury Celebrations is available
in several assortments: An assortment of chocolates like 5 Star, Perk, Gems,
Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk
chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut
butterscotch and caramels. The super premium Celebrations Rich Dry Fruit
Collection which is a festive offering is an exotic range of chocolate covered
dry fruits and nuts in various flavours and the premium dark chocolate range
which is exotic dark chocolate in luscious flavours.

TEMPTATION

Cadbury Temptations is a range of delicious premium chocolate in five

flavours variants - Roast Almond Coffee, Honey Apricot, Mint Crunch, Black
Forest and Old Jamaica.

FACTORS INFLUENCING PRICING OF

CADBURY
Internal Factors
· Corporate and marketing objectives of the firm.

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· The image sought by the firm through pricing.
· The characteristics of the product.
· Price elasticity of demand of the product.
· The stage of the product on the product life cycle.
· Use pattern and turn around rate of the product.
· Cost of manufacturing and marketing.
· Extent of distinctiveness of the product and extent of production
differentiation practiced by the firm.
· Other elements of the marketing mix of the firm and their interaction with
pricing.
· Composition of the product line of the firm.
External Factors
· Market characteristics.
· Buyer’s behavior in respect of the given product.
· Bargaining power of major customers.
· Competitors pricing policy.
· Government controls regulations on pricing.
· Other relevant legal aspects.
· Societal (or social) considerations.
· Understanding, if any reached with price cartels.
Cadbury objective of pricing
· Profit maximization in the short-term.
· Profit optimization in the long-term.
· A minimum return (or target return) on investment.
· A minimum return on sales turnover.
· Targets sales volume.
· Target market share.
· Deeper penetration of the market.
· Entering new markets.
· Target profit on the entire product line irrespective of profit level in individual
products.
· Keeping competition out, or keeping it under check.
· Fast turn around and early cash recovery.
· Stabilizing prices and margins in the market.

~ 24 ~
 figure:1

~ 25 ~
 DATA ANALYSIS & INTERPRETATION

Chocolate is a product which is like by the all age group of people. According
to the survey 83% of people says yes they eat chocolate and 17% say no they
are not eating chocolate. May be the reason behind that is they are not eating
chocolate on daily or weakly basis or may be they are eating any other brand of
chocolate.

figure:2

~ 26 ~
Analysis & Interpretation:
There are many brands available in the market. But the market leaders in India
are basically two brands like Cadbury & Cadbury. According to survey 64% of
the market is captured by the Cadbury and only 36% of the market is covered
by the Cadbury. To capture the market the company should do more advertising
and sales distribution. And also should maintain quality of the product compare
to the competitors.

figure:3

figure:4

~ 27 ~
Analysis & Interpretation:
In this survey Cadbury is having five sub-brands like kitkat, Munch, Milkybar,
Barone,milk chocolates and their consumption are like kitkat 33% ,munch
56 ,milky bar 3% ,bare one 5% ,and milk chocolate 3%. And if we talk about
Cadbury the sub-brand of the Cadbury is dairymilk, 5 star, perk, celebration and
Temptation and their consumption are like dairy milk 62%, 5 star 17%, perk
14%, celebration 2% and Temptation 5%. According to the survey the highest
selling product is Cadbury.

Rank the sub-brands of chocolates according to your preference

CADBURY

figure:5

CADBURY

figure:6

~ 28 ~
Analysis & Interpretation
In this survey I found that the most selling product is Munch the sub-brand of
Cadbury the Munch has capture the 50% of the market as compared to the
Cadbury product the highest selling product of Cadbury is Dairy milk which
captured the market stake of 47% which is as compared to Much 20%less which
is a good sigh for Cadbury and the less consumption of the Cadbury product is
Milk bar & Milk Chocolate the market share is only 3% and in Cadbury less
selling product are Celebration and Temptation the reason behind
this is they are too Costly to consume. And it can only use occasionally.

Which form of a chocolate do you like?

figure:7

Analysis & interpretation:

Every person have there own taste and preferences towards the eatable product
in chocolates there are four varieties available in the market among this 47% of
the consumer like hard chocolates, 29% of the consumer like crunchy
chocolates, 18% of the consumer like nutties chocolates & only 6% of the
consumer like Chew chocolates.

~ 29 ~
What pack do you purchase?

figure:8

Analysis & Interpretation:

The chocolates are available in the market in different packaging like small, big,
& family pack, from the survey we can say that the consumption of the
chocolates are more eaten by the teenage group so they more prefer the small
packaging because of there availability in market is good and most important
thing is its very much affordable. According to the survey 73% are using small
pack, 17% are using big pack of the chocolates, 10% are consuming family
pack because of there high price. So we can easily see that the consumption of
small pack is having boom in the market compare to other packaging

~ 30 ~
Which promotional offers attract you most?

figure:9

Analysis & Interpretation:

To sell out the product there are many promotions activity conducted by the company to
face the competition the offer give by the company are like free gift, price offer, or any
other scheme. In this 12% are giving the free gift offer (scratch the card scheme), 84%
are directly giving the price offer, and 4% giving the any other kind of scheme.

~ 31 ~
Which of these factors affects your purchase?

figure:10

Analysis & Interpretation:

There are many factors affecting at the time of purchase. So company is doing
promotional activities to acquire the desired target of the product. Basically
there are six main type of the promotional activities like 69% of the
advertisement, 1% of the suggestions, 2% of the attractive display, 0%of the
doctors advice, 21% of the companies are using Brand Ambassadors in there
advertisement, 7% of the ingredients. So all this factors are affecting the
purchase.

~ 32 ~
Using brand ambassador by Cadbury.

~ 33 ~
 SWOT ANALYSIS OF CADBURY
STRENGTHS
The SWOT analysis of CADBURY clearly indicates the strengths of Cadbury as a
Brand in Indian market. The Brand was found to be a leader in its category
ofCadbury , with strong customer loyalty. Intensive distribution of Cadbury as a
Brand was seen in urban areas of the country. The major threats of the brand
as shown in the figure below indicates that Cadbury has made several attempts
to revamp itself as a ‘Healthy Product” but till date its perseverance towards
the tag line is low by the consumers. The brand is in the growth stage of
product life cycle with a strong inclination towards the maturity stage.

STRENGTH WEAKNESS

Market leader in their segment Product are dependent on each

Strong brand loyal consumer base other
Wide range of distribution channel Not so much presence in rural
Product according to the need of market
Indian consumer
Innovative Product

SWOT
ANALYSIS

OPPORTUNITY THREAT

Increasing number of working youth Price war with competitors.

Product has been acceptable in youth Strong presence of regional
category competitors
Shift to rural market Consumers don’t perceive it as
Changing preference of consumer a “Healthy Product”
towards Chinese food and fast food.
Can foray into other food markets
with its strong Brand name

~ 34 ~
 FINDINGS
CONSUMER RESEARCH:
Consumer research deals with consumer and their problems and solution to the
problems. In this we came to know about the consumers need and
expectation levels regarding products and ascertainable levels of consumer
satisfaction.

PRODUCT RESEARCH:
Under product research I came to know about the modification which
consumers wants as to the quality, packing, shape, color, and quantity etc. of
their favorite chocolate.

PRICING RESEARCH:
This includes ability to consume, to pay for the product, how much a person can
spend on his/her favorite chocolate. In this I have tried to find out consumer’s
price expectations and reactions.

ADVERTISING RESEARCH:
Under this I have concluded that whether the advertisement appeals the
consumers or not. This also includes evaluating and selecting the proper media-
mix and measuring advertising effectiveness. From the one and half month
experience of our research project with Consumer preference towards Cadbury
and Cadbury Chocolates, We have come to know lot things and it has enhanced
our knowledge to great extent. We found many things which are well executed
by distributors. Here are some of the key findings given by us are purely based
on our research. It doesn’t have any kind of bias from our side.

~ 35 ~
 They are given as under:

By doing the comparison of Cadbury and Cadbury chocolates, we have found

that the preference of the chocolates more preferred by the consumer is
Cadbury.

From the analysis we have found that Nestlé’s some brand has covered 50% of
the market in one product (Munch) of the chocolates which is a very good sign
for the company.

Through the research we found that consumer is very conscious about the
quality of the product in that matter they are not ready to compromise. And we
found both company product are very qualitative.

In some cases we found that if a product is not available in the market than
some consumer would to switchover to another product or brand.

So from these survey we have found that the consumption of the chocolates are
more in children and teenage group though having any occasion or not having
any occasion. The most selling product of both the companies is in small size of
chocolates and there market share is 73% because it’s not much costlier and is
also easily available & affordable.

~ 36 ~
SUGGESTIONS AND RECOMMENDATIONS

Chocolates products at Mumbai city are available in comparison to previous

years, but still there is requirement of development in Chocolate products.
Due to increasing overall cost in Chocolate Products everywhere, cost
format should be made as such that it is affordable to each and everyone in
the society. In this we also found that if the demanded brand is not
available, so at that time the customers switch over the brand of the
chocolate so, here the company should build up the healthy distribution
channel by which company can attract the customers and company loose the
fear from the market. Company should concentrate more on television for
advertisement, as mostly people get attracted through television only. For
promotional offers, company should go for free gifts rather than going for
other ways. Cadbury company should concentrate on its packing as people
are least satisfied with it while Cadbury should concentrate on the shape of a
chocolate. People are unsatisfied with the price and quantity of chocolate so
companies should concentrate in this regard also.

~ 37 ~
 CONCLUSION

A survey of the people has been conducted to know the liking pattern of
the two products Cadbury and Cadbury. It is observed that overall people
like to eat Cadbury brand rather than Cadbury. It is concluded that mostly
people preferred Dairy Milk of Cadbury due to its flavor/taste, quality and
image and due to its hard form. Some people often like to have a chocolate
with good flavor, quality hard form. Some people often like to have a
chocolate with good flavor, quality taste and crunchiness. It is thus
concluded from the facts collected that mostly people refer to buy big pack
of their favorite chocolate, and sometimes some of them go for small and
family pack.

~ 38 ~
 BIBLIOGRAPHY

Kotler Phillip, Marketing Management, Millennium edition. (Prentice hall of

India).
Business today
Business World,
Business India,
A&M, Brand Equity,
Economic Times
CMIE reports
www.indiainfoline.com
www.domain_b.com
www.agencyfaqs.com
www.Cadbury.in
www.nil.com
www.cadburys.com
www.web-enable.com/industry/enabling-scm.asp
indiainfoline.com
askjeeves.com

~ 39 ~
 DEPARTMENT OF BUSINESS MANAGEMENT

SWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY , SAGAR

QUESTIONAIRE

Researcher's Name : Mr.Sukhmal Jain Name of Person : ___________________

Class : B.B.A. I st Sem Age : _____________________________

Gender : Occupation : ________________________

Address :

Q.1 Do you know about Cadbury ?

a. Yes. b. No.

Q.2. Have you used Cadbury ?

a. Yes. b. No.

Q.3 How Often Sales Promotion Schemes are offered on Tajmahal Tea

a. 6 months – 1 year b., 3-6 months c. less than 3 months.

Q,4. Rate the following factors you consider are important for building brand

Image.

a.Price b. Clarity c. Durability

d. Looks e. Quality

Q 5. What do you look for while purchasing Tajmahal Tea ? Please rank in order of
importance?
a. Comparative Advantage b. Price
c. Scheme/Discount/Free Gift d. Quality

~ 40 ~
~ 41 ~