“ANALYSIS OF CADBURY CHOCOLATE IN THE MARKET WITH ITS COMPETITORS”

Submitted in partial fulfillment of the requirementsfor the award of the degree of

Bachelor of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Submitted to: Submitted by:Dr. GB SitaRam Name :Neha(Faculty Guide) Roll No.:0122131708

TECNIA INSTITUTE OF ADVANCED STUDIES

1

Approved by AICTE, Ministry of HRD, Govt. of India Affiliated To Guru Gobind Singh Indraprastha University, DelhiINSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085

E-Mail: director.tecniaindia@ gmail.com, Website: www.tecnia.inFax No: 27555120, Tel: 27555121-24

CONTENTS

S No Topic Page No

1 Certificate 2

2 Acknowledgements 3

3 List of Symbols 5

4 Chapter-1: Introduction 6

5 Chapter-2: Data Reduction & Presentation

58

6 Chapter-3: Data Analysis 59

7 Chapter-4: Conclusions 62

8 References/Bibliography 67

9 Appendices 68

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Certificate

I, Ms. NEHA, Roll No. 0122131708 certify that the Project Report (Paper Code BBA 310) entitled “ANALYSIS OF CADBURY CHOCOLATE IN THE MARKET WITH

ITS COMPETITORS’’ is done by me. The matter embodied in this has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and

belief.

Signature of the StudentDate:

Certified that the Project Report (Paper Code BBA 310) entitled “ANALYSIS OF CADBURY CHOCOLATE IN THE MARKET WITH ITS COMPETITORS” done by Ms. NEHA , Roll No.0122131708, is completed under my guidance.

Signature of the GuideDate:Name of the Guide:Designation:

Countersigned

Director

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ACKNOWLEDGEMT

I would like to take this opportunity to thank all those people, without whose cooperation

and support, this study would not have been possible. First and foremost, I would like to

express my gratitude to Dr. G B Sitaram, Tecnia Institute of Advanced Studies for his

guidance, encouragement and patience.

He guided me throughout my working for the Project, and helped me at various steps.

I would like to thank my family and friends for their support, encouragement,

cooperation and suggestions have helped me in successful completion of this project.

Neha

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LIST OF SYMBOLS

S.No. Symbol Nomenclature & Meaning

1 - Hyphen

2 , Comma

3 ; Semi-Colon

4 : Colon

5 % Percentage

6 . Full-Stop

7 $ Dollar

8 * Asterisk

9 # Number Sign

10 / Solidus

11 @ Commercial at/At the Rate

12 ( Left Parenthesis

13 ) Right Parenthesis

14 { Left Curly Brackets

15 } Right Curly Brackelts

16 ‘ Apostrophe

17 _ Low line/Underscore

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CHAPTER ONE INTRODUCTION

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

category. The Cadbury’s India’s no.1 Chocolate is able to share with their market insights

based upon unparalleled breath of chocolate experience.

Cadbury has grown from strength to strength with new technologies being introduced to

make the Cadbury confectionary business, one of the most efficient in the world. The

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

to Cadbury Schweppes taking the led in both, the confectionary and soft drink market

Intec UK and becoming a major force in the international market. Cadbury Schweppes

today manufactures product in 60 countries and a trade in staggering 120. The Cadbury

story is a fascinating story of a family business that grew in one of the biggest, most

loved chocolate brand in the world. A story that you will remember as the story of “The

taste of life”.

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

chocolate and confectionery industry. A descriptive research

procedure had been applied to come to the conclusions of the project.

A detailed questionnaire had been prepared and the responses of the

concerned people had been collected for the analysis. The project later

concluded in recommending the market potential of the chocolate and

confectioneries

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EXECUTIVE SUMMARY

TITLE: ANALYSIS OF CADBURY CHOCOLATE IN THE MARKET WITH ITS COMPETITORS.

Rationale of study:

The Cadbury’s Inc has taken the opportunity to offer us a broader

view of chocolate category. The Cadbury’s India’s no.1 Chocolate is

able to share with their market insights based upon unparalleled

breath of chocolate experience.Cadbury has grown from strength to

strength with new technologies being introduced to make the

Cadbury confectionary business, one of the most efficient in the

world.This report study about market share and different strategy

with its competitors.

To analyze the marketing strategies of the company with

To determine the market share of Cadbury .

To demonstrate the marketing strategies of Cadbury India Ltd.

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Importance:

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

Cadbury chocolate and its present competitors in the market.

2) This report shows the problems associated with the Cadbury industry in the

market as it helps in removing these problems.

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

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

industry.

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

.

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OBJECTIVE OF THE PROJECT

My main objective of the study on this project is to demonstrate the marketing strategies

of Cadbury India Ltd. To analyze the marketing strategies of the company with its

competitor in the market. Following are the some of the main objective of my report are

as under:

Comparative study of Cadbury chocolate in the market with its main competitors.

To analyze the marketing strategy of the Cadbury India Ltd.

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

To find out the market share of the different competitors in the chocolate industry.

And also to find out the satisfaction level of customer about their product.

.

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This report gives the help to the marketers for analyzing the different competitors in the chocolate industry. These are the following some importance of this research report as under:

1) This report is useful for the researchers who are willing to do research on the Cadbury chocolate and its present competitors in the market.

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

as it helps in removing these problems.

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

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

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

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RESEARCH METHODOLOGY

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

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

market and the impact of Nestle on Cadbury, the research methodology adopted is

basically based on primary data via which the most recent and accurate piece of first hand

information could be collected. Secondary data has been used to support primary data

wherever needed.

Primary data was collected using the following techniques

Questionnaire Method

Direct Interview Method and

Observation Method

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

where a face to face formal interview was taken. Lastly observation method has been

continuous with the questionnaire method, as one continuously observes the surrounding

environment he works in.

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Procedure of research methodology

# Target geographic area was Delhi. NCR.

# To this geographical area questionnaire was given, the questionnaire was a combination

of both open ended and closed ended questions.

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

# Some dealers were also interviewed to know their prospective. Interviews with the

honour of retailer of Cadbury were also conducted.

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

conclusion and recommendations given.

Sources of secondary data

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

policies, procedures etc, wherever required.

# Internet

# Magazines

# Newspaper

:

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The research conducted by Exploratory Research this type of research is Qualitative and

Quantitative. Qualitative refers to the characters of the data or process by which the

data are gathered.

The research process consists of a series of closely related activities. Why a research

study has been undertaken. Why a research study has been undertaken, how the

research problem has been defined, in what way and why the hypothesis has been

formulated, what data has been collected and what particular method has been adopted

and a host of similar other question are usually answered when we talk of research

methodology concerning a research problem or study.

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Sampling:

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

was prepared and interviewing with Retailers and Consumers.

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

samples. It may be geographical as well as individual..

Size of Sample:

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

constitute a sample size. The survey was conducted of 50 outlets.

Analysis:

The data was tabulated manually and was also analyzed manually excel was used to make graphs and pie chart.

26% of people are interested in eating chocolate and 74% are not eating.

The Cadbury brand chocolate 75% of people prefer after that Nestle, Amul

and others are take place.

Most of the people buy chocolate from superstore and after that from retail or

movie mall.

54% people are not aware from this brand while 46% are aware.

Dairy milk and 5 star is most famous product of Cadbury.

Cadbury chocolate is very easily available in the market.

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Conclusion:

This company project has demonstrated “CADBURY’S MARKETING AND

COMPETITIVE STRATEGIES” that has proved to be extensive through, and of great

benefit to the company in furthering its competitive advantage.

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

to continue to do well.

Recommendations :

Maintain dominance in chocolate, confectionery and market leadership in blown

drinks.

New channels such as gifting, child connectivity and value for money offering to

be the key growth drives.

Grow volume sales at least 20% p.a. over the next years.

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

Dairy Milk and Éclairs.

One new major product launch every year.

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LITERATURE REVIEW

History of the company

The legend called Cadbury

1824 – A once business was opened in 1824 by a young Quaker, John Cadbury, in Bull

street Birmingham was to be the foundation of Cadbury Limited, now one of the world’s

largest producer of chocolate.

1831 – By this year the business had changed from a grocery shop and John Cadbury had

become a manufacturer of drinking chocolate and cocoa. This was the start of Cadbury

manufacturing business as it is known today. A larger factory in Bridge Street

Birmingham was rented in 1847, John Cadbury was joined by his brother Birmingham

and the business became Cadbury Brother of Birmingham.

1861 – John Cadbury resigned his business and handed over to his sons, Richard, 25 and

George, 21 who after 5 difficult years almost shut down the business to take up other

vocation. Fortunately for generation of chocolate lovers, they didn’t.

1866 – Saw a turning point for the company with the introduction of a process for

pressing the cocoa butter from the coca beans. This not only enabled Cadbury Brothers to

produce pure coca essence, but the plentiful supply of coca butter remaining was also

used to make new kind of eating chocolate. The essence was advertised as ‘Absolutely

pure, therefore best’.

1879 – Business prospered from this time and Cadbury Brother outgrew the Bridge Street

factory, moving in 1879 to a ‘Greenfield’ site some miles from the center of Birmingham

which came to call Bourneville. The opening of the Cadbury factory in a garden also

heralded a new era in industrial relations and employee welfare with joint consultation

being just one of the introduced by the pioneering Cadbury Brothers.

1899 – In this year the business private limited company – Cadbury Brothers Limited.

Progress since the start of the century through the inter – war years onward ahs been

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rapid. Chocolate has moved being a “luxury” item to well within the financial reach of

everyone.

1905 – Cadbury has many famous brands with one of major success story being

Cadbury’s Dairy Milk chocolate launched in 1905, today Britain’s favorite moduled

chocolate bar.

Cadbury today is the market leader in the U.K chocolate confectionary market,

employing the most advanced processing technology and management information and

control techniques. The company is the confectionary division of Cadbury Schweppes plc

which is major force in the confectionary and soft drinks international market.

World - wide Cadbury is one of the pre – eminent names in confectionary with

impressive range of famous brands.

Quality has been the focus of the Cadbury business from the very beginning as

generations have worked to produce chocolate with that very special taste, smoothness

and snap, so characteristics of Cadbury’s chocolate.

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Design Development

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

paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today’s

standards this chocolate was not particularly good as it was very coarse and dry and was

not sweet or milky enough for public tastes.

At that time there was a great deal of competition in the U.K from continental

manufactures, not only the French with their fancy chocolates but also from the Swiss,

who were renowned for their milk chocolate. Led by George Cadbury junior, the

Bourneville experts set out to meet the challenge. A considerable amount of time and

money was spent on research and new plant design to produce the new chocolate in much

large quantities.

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

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

chocolate.

By 1913 it had become the company’s best selling line and in the mid twenties Cadbury’s

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

Today more than 250 million bars of Cadbury’s Dairy Milk are made every year and

sales reach over 100 million Pound in value.

Cadbury’s Dairy Milk Story

Chocolate has been enjoyed by successive generation since the manufacturing process

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

recipe traditions, which have grown over the years

By today’s standards the first chocolate for eating would have been considered quite

unpalatable. It was the introduction of the Van Houten cocoa press from Holland that was

the major break through in the chocolate production as it provided extra cocoa butter

needed to make a smooth glossy chocolate.

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CADBURY PRODUCTS

Chocolate & Confectionary

Dairy Milk

Fruit & Nut

Picnic

Perk

Gems

Éclairs

Nutties

Temptation

Bournville

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Food Drinks

Ovaltine

Drinking chocolate

Bournvita

Horlicks

The Cadbury Story

Cadbury’s success story In 1984, John Cadbury founded U.K. company with one aim:- to create the highest

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

Cadbury brands were already famous all around world.

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

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

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

The secret of Cadbury’s success

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

careful selection of the finest coca beans from west Africa, as well as

tasty hazel nuts from Turkey and the fine sheet and choicest natural

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

Cadbury always takes extreme care in selecting and marketing the right

range of product in every cause.

The right product, the right partners, the right marketing, the promotional back up and

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

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

factors:-

Quality

Value for money

Advertising

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Amul Chocolates

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

Composition:

Milk Fat 2% Sugar 55% Total Fat 32.33% (Milk Fat + Cocoa Fat) Cocoa Solids 7.5% Milk Solids 20%

Product Specification:

Meets all requirements under the PFA for boiled sugar confectionary.

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

products marketing organisation. It is a state level apex body of milk cooperatives in

Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for

money.

Members: 12 district cooperative milk producers' Union

No. of Producer Members: 2.36 million

No. of Village Societies: 11,333

Total Milk handling capacity: 6.9 million litres per day

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

Milk collection (Daily Average 2003-04):

4.97 million litres

Milk Drying Capacity: 511 metric Tons per day

Cattlefeed manufacturing Capacity:

2340 Mts per day

Sales Turnover Rs (million) US $ (in million)1999-00 11140 3552000-01 13790 4002001-02 15540 4502002-03 18840 4552003-04 22192 4932004-05 22185 4932005-06 22588 5002006-07 23365 5002007-08 27457 5752008-09 28941 616

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Amul BrandsQuality is the essential ingredient in all of our brands and the reason why millions of people choose Nestlé products every day. Our consumers have come to trust in Nestlé’s commitment to excellence and turn to Nestlé brands to maintain nutritional balance in a fast paced world.

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

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

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Breakfast Cereals:

Start your day out healthy with Nestlé BreakfastCereals.

Ice Cream:

Discover the world of delicious Nestlé Ice Cream.

Chocolate & Confectionery

Delighting the senses with a range of tastes and textures.

Prepared Foods:

Preparing well-balanced meals is a snap with Nestlé.

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Beverages:

Drink to a healthy, active life with Nestlé beverages.

Food Services :

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

Bottled Water:

Capturing nature in its purest form.

Petcare :

Nutrition, health and wellness for your pet.

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Nestle IndiaTHE NESTLE India stock has been bubbling with activity in an otherwise listless equity

market.

Till date, the stock has surged 77 per cent from its low of Rs 304 in May 2000 and now

commands a valuation 39 times the expected earnings for 2000. This is steep by FMCG

standards.

The recent surge in the stock is partly driven by the announcement by the parent, Nestle

SA, that it would use the creeping acquisition route to mop up another five per cent in

Nestle India through open-market purchases. But improving the stock's valuation can also

be traced to good financial performance in a market starved of healthy earnings numbers.

On a comeback trail

The resumption of its coffee exports to Russia and a favourable input price environment

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

Sales growth in this period was 10.4 per cent, with domestic sales rising 9.8 per cent and

export sales 13.8 per cent. In reality, the growth in sustainable net profits was higher than

reported as the company took an additional one-time charge of Rs 14.70 crore in the first

nine months of 2000 for provisions against contingencies.

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

Continuing surpluses in global production have pushed both coffee and cocoa prices (the

two key inputs for Nestle India, apart from milk) to historic lows in 2000. While coffee

prices are hovering close to their seven-year lows, cocoa prices recently bounced off their

lowest levels in three decades.

With global agencies forecasting high carry-in stocks for the next season, the soft input

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

sustain its healthy earnings performance over the next couple of years? This will depend

on its ability to revive sales growth in its domestic product categories.

Greener pastures at home

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

the low base of comparison. The cessation of coffee exports to Russia due to the

economic crisis there, led to a 38 per cent drop in export sales (and a 5 per cent drop in

net sales) for Nestle India.

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

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

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

domestic product portfolio to sustain earnings growth.

In recent times, as with other FMCG companies, Nestle India's topline growth in the

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

months. In the domestic market, Nestle India has traditionally derived its revenues from

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

condensed milk and ready mixes, Coffeemate coffee creamer, Everyday Dairy Whitener);

weaning foods for infants (Cerelac, Nestum, Lactogen); chocolates/confectionery and

malted beverages (Milo, KitKat, Charge, Munch, Polo); and food products (Maggi

noodles, soups).

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Cash cows slow down

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

shares in both businesses. But as these are mature products, they appear likely to deliver

steady, and not scorching, growth rates. Sales growth in these businesses was less than

five per cent .

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

intense competition from the players with the dominant market shares. While Unilever

and Tata Coffee are significant threats in the coffee market, the market leader Cadbury

India has been a potent threat in the chocolate confectionery market.

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

market for specialised food products such as soups and noodles holds healthy growth

potential. But the market is relatively small and players such as International Bestfoods,

Unilever and Dabur are vying with a host of imported brands and regional players for a

share of the pie.

Stretching existing businesses

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

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

coffee and Nescafe Gold from the Swiss parent's portfolio to expand its milk products

and beverages range. Incidentally, the inputs from the parent do not come free. Nestle

India paid its parent a Rs 53.69-crore royalty (net profits for the year were Rs 98.47

crore). Royalty payments accounted for 3.5-4 per cent of sales over the past three years.

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

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

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

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However, the revival third quarter domestic sales is heartening. For the quarter ended,

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

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

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

higher order.

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

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

Testing the waters

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

milk, bottled water and biscuits. The foray into biscuits is through the joint venture

Excelsia Foods, so the contribution to Nestle's revenues may at best be in the form of

dividends for now.

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

players can expand through higher penetration levels and at the expense of the

unorganised segment. However, both these segments are quite crowded with feature

listed and unlisted players which have considerable financial muscle.

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

host of private dairies with established clientele.

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

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

Coca-Cola's Kinley. Going forward, competition is only likely to increase, with Britannia

planning to launch more bottled water brands from its foreign collaborator Danone's

portfolio (Evian, one of the largest bottled water brands, is already on shop shelves).

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Striving for niches

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

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

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

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

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

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

failure of Nestle's bottled water foray.

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

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

priced at a substantial premium to the other local brands.

Investment outlook: Nestle's new product forays are into extremely competitive markets

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

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

stable businesses (such as weaning cereals and coffee) and the financial might of the

parent, Nestle SA, will stand Nestle India in good stead.

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

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

its key adversaries worldwide -- Groupe Danone and Unilever. In the foods business at

the global level, both companies are considerably smaller than Nestle SA.

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Organizational Structure

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Managing Director

General Manager

Vice President

Marketing

Manufacturing

Sales Finance Distribution

Cadbury Schweppes

Cadbury Schweppes plc, a global beverage and confectionary giant with annual sale of

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

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

countries around the world. Its Hundred Percent subsidiary in India named Cadbury

Schweppes Beverage India (private) Limited (CSBIL) started operation in March 1995.

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

Schweppes Tonic Water, Schweppes Bitter Lemon.

CSBIL with its franchise agreement with 19 bottles throughout India proposes to be a household name. It has a policy for FOBOs (Franchise owned bottling operations unlike Coke and Pepsi which prefer COBO,s (Company owned bottling operations). In FOBO the beverages company only supplies the concentrate and the marketing support to build brand equity. The other aspects like machinery, bottling line, land and distribution is the responsibility of the bottler. As its CEO Mr. Ashok Jain says, “we are the software, they are the hardware”.

Cadbury’s Market SegmentMarket place for any product is comprised of many different segments of consumers,

each with different needs and wants. Markets segmentation can be defined in a number of

ways such as:

Demographic variables (e.g. Consumers are groups, gender, material states

income etc…)

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

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

consumed.

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

It targets different segments within the market, such as the.

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

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

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

then. They include product such as Cadbury’s Dairy Milk.

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

supermarkets, taken home consumed at a later

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The Diagnosis

Today, The Real Taste of Life campaign, which served

Up chocolate in general, and COM in particular, into the consciousness of adult, has

already become a classic of advertising and marketing. By 1993, Cadbury was

desperately seeking growth for the brand… “With a market share of 70%, trying to win

away customers from competitors in this stagnant market wouldn’t help. They had to find

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

consumption levels”. The obvious solution, in a peculiar predicament. Despite low

penetration, both the brand and the category were displaying symptoms of age: faltering

growth, high recognition, and lack of excitement. The market research revealed the cause

of the graying: chocolate wasn’t a snack in India. “In mature markets, chocolate straddle

a continuum, from boutique product – packaged raw indulgence – to a casual food”. So,

Cadbury whipped up a growth solution that involved associating the brand with snacking

and functionally, which inevitably go together with high consumption rates in the

Western markets.

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

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

basket of competitive products revealed an unmistakable answer.

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The Tests

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

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

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

since it was these that would support the new structure”. Out went the caring - and -

sharing element, but the family context stayed. “Cadbury had two pillars, so it made

sense to change one”.

Chocolate should be eaten whenever you feel like. It was an impulse item, so why

shouldn’t it be sold as one?”. The first of the two commercial focused on functionality,

purging the emotional element.

Is the storyline, The father watches TV, engrossed, gnawing away at a bar of CDM. The

children enter, followed by the mother-but, by that time, the father has completed the

distinctly un paternal act of devouring the entire bar. The children are shocked, where

upon the produces another bar for them-only to eat that up too. Finally, the mother brings

another bar out of her bag. The last shot more CDM bars strew around casually.

The second commercial conveyed the same message, depicting four member of a family

doing their own thing on a Sunday afternoon, each casually munching away on

chocolates. The less than – subtle message: eating chocolate’s just an everyday affair,

without special occasion or relationship coming into play. Despite their strategic intent,

both ads failed on pre – airing tests.

Why for stators, children were outraged at the idea of a parent consuming chocolate,

while adults were down right angry at the notion of the father depriving his children of

chocolate bar. Just as important, consumer rejected the idea that chocolate-eating could

be equated with mechanical activities like combing one’s hair. After all, chocolates were

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about feelings. There had to be magic, romance, love and emotion. These elements had

been ripped away from the advertising. It was sans emotion”.

“Parent Are Different From Adults”

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

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

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

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

“The moment the adult was shown in the context of his role as a parent, all his cognitive

preconception about the product would come to the fore. He’d think about the reasons

why, and the block would automatically come up”. Tap child-ego state within the

adult, stimulating desire, spontaneity, and the craving for instant gratification.

The Prescription

The crucial question that Cadbury was confronted with: what strategy should it deploy to

rejuvenate COM in a way that would appeal to the child lurking within the adult? To

inject a modern flavor into COM, they chose to create a new brand identity, borrowing a

leaf from marketing guru David Aaker, who decrees that brand identity should establish a

relationship between the brand and the customer by generating value proposition

involving functional, emotional, or self-expressive benefits.

“The Ads Had To Be Linkable”

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

Cadbury’s job to mould has habits and behavior in a way that would increase

consumption for product and brand”.

“Impulse Drives Chocolate Sales”

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

examine whether contemporary value systems offered a peg on which the brand could be

judge. The study disclosed, interlaid, a distinct shift from collectivism to individualism,

with the pre – 1990’s sacrosanct values of filial and family love being overshadowed by

the manifestation of a larger need for self – expression. “There was a definite yearning to

be free child”. Therein lay the opportunity for both unshackling consumption and

creating all-new association for CDM.

The Elixir

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

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

rejuvenate be enriched with compensation – and equally enduring – positive values:

universal truths, enduring human values, and universal moment of joy. To translate the

brief into the commercial, they decide to simply portray occasion of childlike-but not

childish-behavior from adults, without explicitly identifying adults as the target customer.

“They left the connection to be made by the customer” “In the process they were able to

get viewer involvement and high levels of empathy. Nowhere did they actually say,

you’re an adult, you can eat it. Because nobody wants to be told”. Thus it was that, the

montage of the child in the man-the old man kicking the football; the pregnant woman

carving a chocolate; young girl breaking into a spirit; the young man tossing a bar of

chocolate at his sweet-heart departing in a bus-was created.

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

chocolate consumption by adults was obvious. Taking a contrition stance, Cadbury

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decided to test the commercial being devised by O&M’s creative team not for the tire

battery of likeability, comprehension, credibility and behavior modification – but only for

the first two. “If asked upfront, the consumer was hardly likely to consider the

dramatically-different idea credible.

The Real Taste of Life Campaign

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

one and a half glass of milk pouring in to a boy Dairy Milk unique glass and half in to a

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

milk conveying the deliciousness and taste appeal of the gooey, creamy, smooth

chocolate inside the pack that children like. The mnemonic of 1 ½ glass reached to

consumer through every magazines, poster, T.V, newspaper.

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

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

created to bring out the child in the. The old man kicking the football, the pregnant

women craving chocolate, young girls breaking into a spirit, the young man tossing a bar

chocolate at his sweet heart departing into a bus. The common refrain linking them was

the adult in a free child mode – spottiness, impulsive and carefree.

The ad was protested among adult’s trough focus groups. The ad received an

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

identification consumers’ response

were those me…… “Feel like that…….”. “Every feels like this”…….. accessions.

Consumers described dairy milk as “… of all ages”

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

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

realize the import once of the message, which is where the comprehension had to be

tested. “What was clear in this case was that likeability would have to include

identification and feeling warmth.”

The New Campaign

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

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

aimed to ‘substantially’ increase penetration level of the chocolate category in the next

few years.’

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

rectifying the consumer perception about chocolate being an up market impulse – driven

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

habit.

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

market. The objective behind tne new communication on Cadbury Dairy Milk is to make

the chocolate category more socially and culturally relevant and drive penetration in the

process.

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

Khass Hai’ campaign and the media strategy is to let the two co – exist towards a

common vision “providing a Cadbury in every pocket”.

Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi!Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi!

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Chocolate Market Share

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

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

like Cadbury India are launching indigenous product made to international standards. Of

the 20,000 tones chocolate market worth about

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

20%. Amul has about 5% of the market, with minor player taking the rest. The battle,

though, is between Cadbury and Nestle. Though with a much smaller portfolio, Nestle is

putting up a tough fight.

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

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

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

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

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

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

Butterscotch & Tiffns – a new lease of life. In other words, it facilitated the repositioning

of Cadbury’s sub brands in the basket. Some o the strategic clicked, while other did not

quite take off.

The company is pushing the gifting segment, through occasion linked gifts. Chocolates

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

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turnover is contributed largely by Éclairs. The company attempted expanding its

confectionary product portfolio, with launch of sugar based confectionary goodly and

fruits, without much success. Cadbury also has a strong brand vita in the malted health

drink category which account for 24% of turnover.

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

has 4% of the market share in this segment. Leading national players are nutrine, Pary’s

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

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

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

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

market for drinks, accounting for largest proportion of all India’s sale. Cadbury’s Bourn

Vita is leader in the down drink coca based segment in the white drink segment Smith

Kline’s Horlicks in the Nestle Milo , GCMMF nitramul and other Smith Kline brand

Boost, Maltova and Viva Cadbury bold 14% market share in food drinks segment.

Despite tough market condition and increased competition Cadbury managed to record a

double digit (11%) top line growth. The company achieved a volume growth of 5.2%.

This was achieved through innovative marketing strategies and focused advertising

campaign foe flagship brand Dairy Milk. Net profit rose sharply by

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

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

improve the profitability. Company added 8 million new consumers and saw its outlets

grow to 4.5 lakhs and consumer to 60 million.In the food segment, Britannia is the leader

brand with 21% among those who expressed an opinion saying that they like advertising

for the brand Cadbury was clearly No.2 with 18% to which CDM throw in its weight

with 13% and pork with 4%. For the Chowlate company, Khane Walo Lo, Khane Ka

Bhanna and the Karwa Cauth, Sports are clear winners.

44

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

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

Current Market Share

Chocolate 69.2%

Sugar Confectionary 4.0%

Food Drink 14.2%

Expanding Distribution Reach

2001 + Distribution

450000 Retail Outlet

60 Million Consumers

45

SWOT ANALYSIS

Strength

1.Very strong brand equity in India.

1. Due to its 54 years presence in India – has deep penetration – 2100

distributors; 450,000 retailers, 60 mid urban (22%) customers.

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

brown segment).

3. Low cost of production due to economic of scale. That means higher profits

and / or more competitioners. Better market penetration.

4. Second best manufacturing location throughout Cadbury Schweppes.

Weakness

1. Poor technology in India compared to current international technologies

(Godiva, Mozart, Fazer, Dint, Naushans, etc...)

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

in India.

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

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Opportunities

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

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

3. Growing middle class and growing urban population.

4. Increasing gifts cultures.

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

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

7. Globalisation: optimal use of global Cadbury Schweppes.

Threats

a] Major :-

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

b] Minor :-Globalization will being in better brands for upper end of the market (Liest,

Monarch, Godiva, etc…

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5 P’S OF MARKETING

PRODUCT

Satisfaction suffices. But delight dazzles the average company will compete for

customer by conforming to her expectation consistently. But the winner will surpass them

by constantly exceeding her expectation, delivering to her door step additional benefits

which she would never have imagined possible. Cadbury’s offer such product.

The wide variety products offered by the company include:

I. Chocolate & Confectionary

1) Dairy Milk

2) Fruit & Nut

3) 5 Star

4) Break

5) Perk

6) Gems

7) Eclairs

8) Nutties

9) Temptation

10) Milk Treat

II. Food Drinks

1) Bournvita

2) Drinking chocolate

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3) Cocoa

PRICING

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

and relying on this strategy alone to increase sales dramatically. The strategy used by

Cadbury’s is for matching the value that customer pays to buy the product with the

expectation they have about what the production is worth to them.

Cadbury’s has launched various products which cater to all customer segments. So every

customer segment has different price expectation from the product. Therefore

maximizing the returns involves identifying right price level for each segment, and then

progressively moving through them.

Dairy Milk Rs. 15

Perk Rs. 10

5 Star Rs. 10

Friut and Nut Rs. 22

Gems Rs. 10

Break Rs. 5

Nutties Rs. 18

Bournvita (500 gm) Rs. 104

Drinking chocolate Rs. 50

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PHYSICAL DISTRIBUTION:- “PLACE”

BRAND ISN’T THE ONLY ANY MORE. Marketers and finance manager need a new

term to evaluate their business:

Distribution Equity. It takes much more time and effort to build, but once built,

distribution equity is much together to erode.

The fundamental axiom of Indian consumer market is this:

You can set up a state-of –the-art manufacturing facility, hire the hottest strategies on the

block, swamp prime television with best Ads, but the end of it all, you would be know of

selling your products. The cardinal task before the Indian market is managing is to shoe-

horn its product on retail shelves. Buyers are paying for distribution equity not brand

equity and market shares.

Why does the company need distribution equity more

anything in India? With technology and competitive pressure slash in it is becoming

increasing difficult for marketers to retain a unique product differentiation for ling period.

In a product and price parity situation, the brand that sells more is the one that reaches the

highest number of customers.

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India – 1 billion people, 155 million household has over 4 million retail outlets in 5351

urban markets and 552725 villages, spread cross 3.28 million sq. km. television has

already primed and population for consumption, and the marketer who can get to the to

the consumer ahead of competition will give a hard – to – overtake lead. But getting their

means managing wildly different terrains-climate, language, value system, life style,

transport and communication network. And your brand equity isn’t going to help when it

comes to tackling these issues.

Own distribution network consist of clearing and forwarding (C&F) agents & distribution

stockiest. This network of distribution can either contact wholesalers and which in turn

retailers or the distributors can contact to the retailers directly.

Once the stock product reaches retailers, the prospective customers can have access to the

product.

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

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

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

also attempting to improve the distribution quality. To address the issue of product

stability, it has installed visi colors at several outlets. This helps in maintaining

consumption in summer when sales usually drops due to the fact that the heal effects

product quality and thereby off takes.

Looking at the low penetration of the chocolate, a distribution expansion would itself

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

million retailers.

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

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

even pure sugar confectionery major Parry’s 11%. The company is looking to reduce this

parity level. At Cadbury, they believe that selling confectionery is it like selling soft

drinks.

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PROMOTION

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

to, and be prepared too take step toward the sender. Effective advertising is rarely

hectoring or loudly explicit…. It often both attracts and generates arm feelings. More

often than not, a successful campaign has a stronger element of the unexpected a quality

that good advertising shares with much worthwhile literature.

To penetrate into the inner recesses of her memory, communication must first ensure

exposure, grab her attention evoke her comprehension, grab her acceptance and then

extract retention competing with thousands of other units of communication trying to do

the same.

Finding showed that the adults felt too conscious to be seen consuming a product actually

meant for children. The strategic response address the emotional appeal of the band to the

child within the adult. Naturally, that produced just the value vacuum that Cadbury was

looking to fill. Thereafter it was the job of the advertising to communicate customer the

wonderful feeling that he could experience by re-discoursing the careful, unself

conscious, pleasure – seeking child within himself – a graft these feeling onto the Ad

campaign like “Khane Walon Ko Khane Ka Bahana Chahiye” for CMD and “Thodi

Si Pet Pooja – Kabhi Bhi Kahin Bhi” for Perk have been sure shot winner with the

audience.

Whirl with the new launched temptations with the slogan “Too To Share” the

communication resolves around the reluctance of a person who’s got their hand on a bar

of temptation to let anyone else to have a bite. As well as outdoor and radio ads, ad

agency contract has created communication for cinemas and even ATM machines for the

brand.

All ICICI’ s ATM a message flashes on the screen as soon as customer insert his ATM

card. It tells the customer that this would be good time to get out of her temptation since

he/she is bound to be alone. Something familiar is planned for phone-book as well. In

cinemas, Cadbury has a message on-screen just before the lights are dimmed to give them

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a chance to get their temptations. There will also be after dinner sampling in restaurants –

to begin with, 30 catteries in Mumbai have been selected.

The next round of activity will include the wafer-chocolate Perk and the Picnic bar,

which has faced problems with its taste, because of the peanut it contains. Milk treat has

also been launched in a module bar form, just in time of Diwali gifting market. Éclairs

has got potential for much wide distribution, in a small sweets that

airlines, hostels, and up market retail outlet offer to guest and customers.

Ad spend in 2000 was about 14% of sales and the management said that plans to maintain

as spend at this level in the current year also.

Ad since any discussion today would be incomplete without mention ‘e’ word, the

management plans to tap this new channel of

marketing. Beside three company website (i.e. www.cadburyindia .com,

wwww.bourvita.com, www.cadburygift.com that the company has launched, it had also

entered into various marketing relationship with other portals, specially targeted during

festivals and events such as Valentines day, etc….

It’s a combination of spiffing up its key brand, researching and improving the newer

products that haven’t taken off, supported with high ad – spends that Cadbury hopes will

see it emerges stronger after the current slowdown, as well as expand the market.

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

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

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

value marketers…. Some of today’s most successful companies recognize those

customers are more educated and able to recognize true customer value…

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

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

large group of people than 50 product or service ideas to 50 separate group…

repositioning is a must when customer attitude have changed and product have strayed

away from the consumer’s long standing.

Positioning of individual product:

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

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

the product. The chocolate is meant for all age groups. It symbolizes fun,

enjoyment, good items. It has goodness of milk, taste and appetite appeal.

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

on an emotional platform in India during the late 1980s. Symbolizing

togetherness, 5 star was originally targeted at teenagers.In fact, before the launch

of Perk, 5 star’s energy bar positioning made it a snacking chocolate.

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

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

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

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

Cadbury decided to too teenagers with the ‘Smart Very Smart’ campaign. But

now, the company is retargeting children with its animated commercial. “Gems

are the best brand to speak to children. Colorful .

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

children.”

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

as a funky chocolate to add spark to life.

7. Perk: Cadbury preempted the launch of Nestlé’s Kit-Kat by rushing a new brand,

Perk into the market. Positioned much further on the functional scale than 5 star,

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

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

health aspect, Bournvita combined the nutritious value with taste.

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III. Chocolate & Confectionary

1) Dairy Milk

2) Fruit & Nut

3) 5 Star

4) Break

5) Perk

6) Gems

7) Eclairs

8) Nutties

9) Temptation

10) Milk Treat

IV. Beverages

V. Food Drinks

1) Bournvita

2) Drinking chocolate

3) Cocoa

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MARKET HAS BEEN LISTED BELOW

Cadburys brands

Positioning Nestle’s brands Positioning

Cadbury Dairy Milk

Fruit n Nut Creamy barRoast AlmondCrackleBournvita

“The Real Taste of Life”

Position as adults as an impulse any time purchase – self expression values attached

Classic Milk Chocolate

Bar One

Positioned as an affordable enriched milk chocolate

Positioned as Trendy, Cool, any time snack.

5 Star / Perk/Break

Perk – Positioned as Snacking consumption “Thodi si Pet Pooja” 5 Star Energy bar Reach for the Stars.

KitKat Positioned as a snacking consumption “Have a Break, Have a Kit Kat”

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CHAPTER - 2

DATA ANALYSIS AND FINDINGS

Data was tabulated manually and was also analyzed manually. Excel was used to make

graphs had pie charts.

Main technique used were:

Modal value was used to analyze the questions, which has 2 or more choices as their

answers. Simple average were used to get answer to questions

26% of people are interested in eating chocolate and 74% are not eating.

The Cadbury brand chocolate 75% of people prefer after that Nestle, Amul

and others are take place.

Most of the people buy chocolate from superstore and after that from retail or

movie mall.

54% people are not aware from this brand while 46% are aware.

Dairy milk and 5 star is most famous product of Cadbury.

Cadbury chocolate is very easily available in the market.

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CHAPTER 3

DATA ANALYSIS

1. Do you eat chocolates?

2.Which brand of chocolates do you use?

59

3.Where do you buy chocolates from?

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

60

5. Which cadbury’s product do you usually prefer or use?

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

CHAPTER-IV

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CONCLUSION

This company project has demonstrated “CADBURY CHOCOLATE MARKETING

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

through, and of great benefit to the company in furthering its competitive advantage. It

also helps the company for building its future planning and targeting the customers for

more satisfaction through its innovative product.

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

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

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RECOMMENDATIONS

Maintain dominance in chocolate, confectionery and market leadership in blown

drinks.

New channels such as gifting, child connectivity and value for money offering to

be the key growth drives.

Grow volume sales at least 20% p.a. over the next years.

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

Dairy Milk and Éclairs.

One new major product launch every year.

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Concerns Come To Mind

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

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

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

environment may have been easy, but it certainly won’t be easy in liberalized

environment of free imports. And whatever be the anomalies of taxation or low, the

consumer is surely going to have a wider choice. And it is going to be shared with other

brands too in future. There is additional challenge of Cadbury’s brand just aiming market

share when the consumer has a wide portfolio of brand to choose from.

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

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

comment on the long term response to the new launch temptations. They say chocolates

are mostly am impulse purchase. Therefore consumer would prefer smaller, low cost

packs to bigger higher priced ones.

The growth trend of the brands therefore clearly indicates that the only brand that has grown is the one that gas received tremendous marketing and advertising support Dairy Milk withdraw support for any brand and growth loses momentum. In such scenario, for how long and how many brands can the company continuously support?

FUTURE STRATEGY

In the branded impulse market, the share of chocolate in 6.6% and Cadbury’s share in the

impulse segment is 4.8% factor like changing attitude, higher disposable income, a large

youth population, and low penetration of chocolate (22% of urban population) point

towards a big opportunity of increasing the share of chocolate in the branded impulse

among the costly alternative in the branded impulse market.

It appears that company is likely to play the value game to expand the market encouraged

by the recent success of its low priced ‘value for many packs’.

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Various measures are undertaken in all areas of operation to create value for the future.

New channel of marketing such as gifting and child connectivity and low end value for

money product for expanding the consumer base have been identified.

In terms of manufacturing management focus is on optimizing manufacturing efficiencies

and creating a world class manufacturing location for CDM and Éclairs. The company is

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

Efficient sourcing of key raw material i.e. coca through forward purchase of imports,

higher local consumption by entering long term contract with farmer and undertaking

efforts in expanding local coca area developing. The initiatives in the terms of

development a long term domestic coca a sourcing base would field maximum gains

when commodity prices start moving up.

Use of it to improve logistic and distribution competitiveness

`Utilizing mass media to create and maintain brands.

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

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

the growth in absolute numbers is lower than targeted, the company has been able

to increase the width of its consumer base through launch of low priced

products.

Improving distribution quality by addressing issues of product stability by

installation of visi coolers at several outlets. This would be really effective in

maintaining consumption in summer, when sales usually dip due to the fact that

the heat effects product quality and thereby consumption.

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The above are some steps being taken internally to improve future operation and

profitability. At the same time the management is also aware of external changes

taking place in the competitive environment and is taking steps to remain competitive

in the future environment of free imports, lower

barrier to trade and the advent of all global players in to the country. The

management is not unduly concerned about the huge deluge of imported

chocolate brands in the market place.

It is of the view that size of this imported premium market is look small to

threaten its own volumes or sales in fact, the company looks at the tree important

as an opportunity, where it could optimally use the global Cadbury Schweppes

portfolio. The company would be able to not only provide greater variety, but it

would also be more cost effective to test market new product as well as improve

speed of response to change in consumer preference through imports. The only

concerns that the company has in this regard is the current high level of duties,

which limit the opportunity to launch value for money products.

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BIBLIOGRAPHY

Philip Kotler (Eighth Edition) “Marketing Management”, Prentice Hall of India

Ltd.

Advertising and marketing Magazine

Company Literature

Market survey and questionnaires

Web site: www.cadburyindia.com

Web site: www.google.com

Business World.

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APPENDICES

QUESTIONNAIRE

1. Do you eat chocolates?

Yes No

2. Which brand of chocolates do you use?

Cadbury’s Nestle Amul Others

3. Where do you buy chocolates from?

Super stores Retail Stores Restaurants Movie Halls Others

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

Yes No

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5. Which cadbury’s product do you usually prefer or use?

Dairy Milk 5 Star Fruit & Nut Perk Temptation

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

Yes No

7. Describe Cadbury’s Chocolate in one word?

8. Your comments on Cadbury’s products?

______________________________________________________

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