RETAIL MANAGEMENT

A COMPARITIVE STUDY ON CADBURYS AND NESTLE

SUBMITTED BY: CHRISTINA SUSAN THOMAS

NISU T VARGHESE
LOVIS JACOB
JOHN RICHARDSON
GANESH PV
DONY CHACKO
INTRODUCTION
NESTLE
 Origin traced backed to 1912 in Switzerland.

 Responded to India’s need for a primary producer of diary products.

 Established first factory at Moga, Punjab.

 Helped famers in increasing agricultural yield.

CADBURY
 Introduced in United Kingdom in 1905.

 Every product in the Dairy Milk line is made with exclusively milk
chocolate.
 Many of the newer Dairy Milk varieties are manufactured in France
and sold in the UK.
 The first dairy milk bar was made in 1905 in England.

 Fruit and nut was introduced in 1928.

 The tagline is “Free the Joy”.

SWOT ANALYSIS OF CADBURYS
STRENGTHS
 Cadbury is replaced as the topmost international chocolate
provider of the world.
 It is well known to the people.

 It is a well known force in marketing and distribution.

 Cadbury main strength is Dairy Milk. Dairy Milk is the most

consumed chocolate in India.
WEAKNESS
 It is mainly found in urban and semi-urban areas.

 It has been relatively high priced brand, which is turning the

price conscious customer away.
 People avoid having their chocolate thinking about egg
ingredients.
OPPORTUNITIES
 The chocolate market has seen one of the greatest increases in
the recent times (almost @ 30%).
 There is a lot of potential for growth and a huge population
who do not eat chocolate even today that can be converted as
new users.
THREATS
 There exists no brands loyalty in the chocolate markets and
consumers frequently shift their brands.
 New brands are coming and existing brands are introducing
new variants to add up to an already overcrowded markets.
SWOT ANALYSIS OF NESTLE’S
STRENGTHS
 Nestle has positioned themselves very well with all the variety
of products.
 It is reputed internationally as the topmost food products
provider in the world.
 They are well known for providing topmost quality products.

 Nestles main strength is coffee as it is most consumed in India

and abroad too.
 The prices of chocolates of Nestles are comparatively cheap as
compared to other companies.
WEAKNESSES
 Its main strength has only been coffee and not chocolates also.

 There is big scope for chocolate in rural market.

 Even this brand has failed to provide pure vegetarian

chocolates in India as per the culture.
OPPORTUNITIES
 The chocolate market is at growth stage with very less
competition so by introducing new brand and advertising there
can be a very good scope in future.
THREATS
 There is no brand loyalty in the chocolate market.

 High competition.

 New small companies entering Indian market may take away

the market share.
PRICING STRATEGIES FOR CADBURY
 Skimming pricing- With skimming pricing,
these prices are set very high to take advantage of some
peoples desire for a new product or design at any price.
 Positioning pricing- Cadbury uses this method to position
prices that are set which reflect
the consumers view of the chocolate bean.
 Competitive pricing- In this situation Cadbury set a price
roughly in line with their
competitors. This will depend on the type of competition that
exists for the chocolate bean.
 Discount pricing- Cadbury is a competitive market which
buyers should be able to obtain
goods for less than the advertised price.
PRICING STRATEGY OF NESTLE
Pricing Strategy
 Market entry strategy

 Pricing strategy for establishing products.

 Price leadership strategy.

 Flexibility in pricing strategy.

Price adjustment strategy

Geographical pricing; different prices for customers located in
different part of the World.
Product Mix Pricing Strategy
Each of Nescafe Classic, Nescafe 3 in1, Nescafe Gold etc.  Has
different price in different sizes.
MARKETING STRATEGY OF CADBURY
The 4 P’s used by Cadbury are:
Product - Cadbury offers a wide variety of products which include:
 Chocolates
 Snacks
 Beverages
 Candy
 Gums
Place- The place means to identify the physical distribution of the product where the
product should be available for the customer at the right place. Marketing cost of
Cadbury is 18% of its total cost which is higher as compared to Nestle.
Price- The strategy used by Cadbury for satisfying the value that all the customers buy
the product is using the expectation they have about how much the production is
worth to them.
Promotion- Some of the famous marketing Campaigns are :
“ KHANE WALON KO KHANE KA BAHANA CHAHIYE” for Cadbury Dairy Milk.
“THODI SI PET POOJA – KABHI BHI KAHIN BHI “ for Perk.
MARKETING STRATEGY OF NESTLE
Below are the products, price, place and promotions of nestle:
Products- Nestle offers wide variety of products which include:
Beverages
Milk and milk products
Prepared dishes and cooking aids
Chocolates

Price- The strength of pricing for nestle comes from its packaging or
consumption based pricing. Nestle offers a lot of sizes and
package option.
Place- The distribution channel of nestle is as follows:
Manufacturing Distributors Retailers Consumer
Promotion- Nescafe tune, excellent and innovative campaigns of
maggi, tagline of kitkat has done some good marketing for nestle.
TOP COMPETITORS OF CADBURY
 Kitkat

 Mars

 Hershey’s

 Lindt

 Ferrero
TOP COMPETITORS OF NESTLE
 Mondelez

 Mars

 Kraftfoods
 Heinz

 Unilever

 Amul
CONCLUSION
Cadbury and Nestle have been giving each other big
competiton and challenges in the Indian market. They
are coming up with great promotional strategies,
distribution channels, offers, gifts and many more
incentives in order to get more and more customers.
Cadbury is far ahead from Nestle in terms of chocolates
while Nestle is ahead in terms of snacks.