TableOfContent

ChapterNo Title PageNo

1 Introduction
2 Organization Profile
3 Topic Related
4 Learning Outcome
5 Conclusion
 Chapter 1
1.1 Introduction

DAIRY MILK is a brand of milk chocolate currently manufactured by CADBURY, except in the
United States where it is made by the Hershey Company. It was introduced in the United
Kingdom in 1905by and now consists of a number of products. Every product in the Dairy Milk
line is made with exclusively milk chocolate.

Cadbury Dairy Milk remains at the top of the Indian Chocolate Market not only because of its
most delicious, best tasting chocolate but also because of its memorable communication.
 Chapter 2
2.1 organisation profile

Cadbury Dairy Milk is a British brand of milk chocolate manufactured by Cadbury. It was
introduced in the United Kingdom in June 1905 and now consists of a number of products.
Every product in the Dairy Milk line is made with exclusively milk chocolate. In 1928,
Cadbury's introduced the "glass and a half" slogan to accompany the Dairy Milk chocolate
bar, to advertise the bar's higher milk content.

The bar was developed by George Cadbury Jr, and by 1914 it had become the company's
best-selling product. A century on it has retained its position as a market leader in the UK
where it was ranked the best-selling chocolate bar 2014. It is manufactured and distributed
by the Hershey Company in the United States under licence from Cadbury, with a recipe that
differs from the UK version. The chocolate is now available in many countries,
including China, India, SriLanka, Pakistan, Philippines, Indonesia, Kazakhstan and
Bangladesh.

In June 1905, in Birmingham, England, George Cadbury Jr made Cadbury's first Dairy Milk
bar, with a higher proportion of milk than previous chocolate bars; by 1914, it would
become the company's best-selling product. Through its development, the bar was variously
called 'Highland Milk', 'Jersey' and 'Dairy Maid'.Accounts on the origin of the Dairy Milk
name differ; it has been suggested that the name change came about on the advice of a
shopkeeper in Plymouth, but Cadbury maintains that a customer's daughter came up with the
name.
 2.2 About the organization

Product :

The original Dairy Milk bar ("with a glass and a half of fresh milk") was launched in 1905.

There are various bars, such as Caramel, Fruit & Nut (a bar with raisins and almonds), "Whole
Nut" (with hazelnuts), "Dairy Milk Silk" and Dairy Milk Ritz, a bar with salty Ritz crackers ,
launched in the United Kingdom in 2014. Alongside this new bar, Dairy Milk with LU biscuits
was also launched. There is also Dairy Milk Oreo, a bar with an Oreo filling , also made as a
mint flavoured bar .The 1970s television advertising campaign for the "Whole Nut" featured a
series of commercials with the tag line "Nuts, whole hazelnuts. Ooh! Cadbury's taken them and
they cover them in chocolate".

A Vegemite flavoured bar, which consists of milk chocolate, caramel, and Vegemite (5%), was
launched in Australia in 2015.

In 1986, the glass and a half symbol appeared on the front of the Irish Dairy Milk wrapper.

Marketing in India :

Initially, the company had appointed Amitabh Bachchan as the brand ambassador in
2004. However, the brand soon faced a significant backlash, with worms being spotted in a few
of the chocolate bars. With its new campaigns, the company recovered again, with increased
sales. One campaign that promoted the product by using the country's love for cricket was
successful. The advert was noted to be the best advertisement made in India by The Times of
India.

Another famous campaign hosted by the company in the past was the 'Shubh Aarambh'
Campaign. This campaign made use of the traditional practice of Indian households of having
something sweet before every auspicious occasion. This campaign was successful, and
positioned Cadbury Dairy Milk chocolates as part of a family name. Cadbury today holds 70% of
the market share of the chocolate industry in the country.
 CHAPTER 3
Topic Related
3.1 Cost Sheet for a product of a company

The following are the details of 4,50,000 units of CADBURY DAIRY MILK CHOCOLATE:-

 RAW MATERIAL REQUIRED FOR 4,50,000 UNITS:-

S.NO MATERIAL AMOUNT

. (in Rs.)
1. Sugar 3,00,000
2. Cocoa Butter 3,00,000
3. Cocoa Solids 3,20,000
4. Peanuts 2,00,000
5. Milk Solids 2,00,000
6. Chocolate Coated 4,00,000
Raisin
7. Almonds 3,00,000
8. Honey 5,00,000
9. Boston Baked Bean 15,0000
10 Salt 25,000
11. Apricot 75,000

 DIRECT LABOUR INVOLVES THE FOLLOWING EXPENSES:-

 S.NO PARTICULARS HOURS SPENT AMOUNT
. (in Rs.)
1. Set Up 05 20,000
2. Mixer 120 1,80,000
3. Dough Roller 75 1,80,000
4. Cookie Cutter 25 20,000
5. Baker 50 1,00,000
6. Timer 10 20,000
7. Decorator 55 80,000
8. Quality control 10 1,00,000

 Carriage Inward amounts to Rs. 2,42,500

 Carriage Outward amounts to Rs. 20,000

 MANUFACTURING COSTS ARE AS FOLLOWS:-

S.NO. FIXED AMOUNT

(in Rs.)
1. Depreciation on Plant & Machinery 2,57,500
2. Rent 1,50,000
3. Power & Consumable Stores 1,50,000
4. Factory Insurance 1,50,000
5. Supervisor’s Salary 50,000

S.NO. VARIABLE AMOUNT PER UNIT

(in Rs.)
1. Electricity Charges 0.11/U
2. Power & Consumable Stores 0.22/U
3. Running Expenses of Machine 0.33/U

 Office & Staff Salary amounts to Rs. 10,00,000

 Office Rent amounts to Rs.80,000

 Expenses incurred on:-

Office Computer Rs. 1,20,000
Furniture Rs. 3,00,000
Telephone Rs. 10,000
 Depreciation on Office Furniture amounts to Rs. 50,000.

 Rent, Rates & Taxes amounts to Rs. 30,000.

 Salaries to Administrative Staff amounts to Rs. 3,70,000.

 SELLING AND DISTRIBUTION EXPENSES ARE AS FOLLOWS:-

S.NO. PARTICULARS AMOUNT

(in Rs.)
1. Advertisement 4,00,000
2. Petrol 1,00,000
3. Delivering Vehicles 2,50,200
4. Maintenance of Delivering Vehicles 49,800
5. Packing Rates 50,000
6. Bad Debts Written Off 1,00,000

 The Company charges Net Profit at the Rate of 20% on Selling Price.

Cost sheet

Output=4,50,000 chocolates
PARTICULARS TOTAL COST
COST PER
 UNIT
RAW MATERIALS
Sugar = 3,00,000
Cocoa Butter = 3,00,000
Cocoa Solids = 3,20,000
Peanuts = 2,00,000 23,20,000 5.16
Milk Solids = 2,00,000
Chocolate Coated Raisins = 4,00,000
Almonds =3,00,000
Salt = 25,000
Apricot = 75,000
Honey = 50,000
Baked Beans = 1,50,000
DIRECT LABOUR
Set up = 20,000
Mixer = 1,80,000
Dough roller = 1,80,000 7,00,000 1.56
Cookie cutter = 20,000
Baker = 1,00,000
Timer = 20,000
Decorator = 80,000
Quality control = 1,00,000
Carriage on Material = 2,42,500 2,42,500 0.53
PRIME COST 32,62,500 7.25
FACTORY EXPENSES
A. FIXED
Depreciation on Plant & Machinery = 2,57,500
Rent = 1,50,000
Power & Consumable Stores = 1,50,000
Factory Insurance = 1,50,000 10,57,500 2.35
Supervisor’s Salary = 50,000
B. VARIABLE
Electricity Charges = 50,000
Power & Consumable Stores = 1,00,000
Running Expenses of Machine = 1,50,000
FACTORY COST 43,20,000 9.60
OFFICE AND ADMINISTRATION EXPENSES:-
Office Staff Salary = 10,00,000
Rent = 80,000
Computer = 1,20,000
Furniture = 3,00,000
Telephone = 10,000 1980000 4.4
Carriage Outward = 20,000
Depreciation on Furniture = 50,000
Salaries to Administrative staff = 3,70,000
Rent, Rates & Taxes = 30,000
COST OR PRODUCTION/COST OF GOODS SOLD 63,00,000 14.00
SELLING & DISTRIBUTION EXPENSES
Advertisement (Print & By Local T.V. Channels) = 4,00,000
Petrol = 1,00,000
Delivery Vehicles = 2,50,000 9,49,800 2.11
Maintenance of Delivery Vehicles = 49,800
Packing Rates = 50,000
Bad Debts Written Off = 1,00,000
COST OF SALES 72,00,000 16.00
NET PROFIT ( 20% ON SELLING PRICE) 18,00,000 04.00
SALES 90,00,000 20.00