Cadbury India Project

A PROJECT REPORT ON CADBURY INDIA

BY AKSHAY SUHAS BHADE BBA (2010-2011)

IN PARTIAL FULFILLMENT OF Bachelor of Business Administration UNIVERSITY OF PUNE

MITSOM College PUNE: 411038

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CERTIFICATE

This is to certify that Mr. AKSHAY SUHAS BHADE of MAEER’s MITSOM College has successfully completed the project work titled CADBURY INDIA in partial fulfillment of requirement for the award of Bachelor of Business Administration prescribed by the University of Pune.

This project is the record of authentic work carried out during the academic year 2010-2011.

Subject Teacher

Principal

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DECLARATION

I, Mr. AKSHAY SUHAS BHADE hereby declare that this project is the record of authentic work carried out by me during the academic year 2010-2011 and has not been submitted to any other University or Institute towards the award of any degree.

Signature of the student AKSHAY SUHAS BHADE

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ACKNOWLEDGEMENT

I would like to thank everybody who has contributed towards the valuable information that has been useful for doing this survey. The project would not have been successful without the help and support of the various sources used. I would like to thank all the respondents who took out their valuable time. Without them the survey would have not been possible. And of course I express my gratitude towards our respected professor for his/her constant encouragement and help provided by him/her.

INTRODUCTION

MARKETING STRATEGIES

Marketing strategy is a process that can allow an organization to concentrate its limited resources

on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Marketing strategies serve as the fundamental underpinning of  marketing plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics. Marketing strategy involves careful scanning of the internal and external environments which are summarized in a SWOT analysis. Internal environmental factors include the marketing mix, plus performance analysis and strategic constraints. External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission. Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation. A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan.

TYPES OF STRATEGIES

Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below: 

Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies: Leader Challenger Follower Nicher Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. 

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Strategic scope refers to the market penetration while strategic strength refers to the firm‟s

sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are  Differentiation and low-cost  leadership each with a dimension of  Focus-broad or narrow. Product differentiation (broad) Cost leadership (broad) Market segmentation (narrow) Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of  technology and business innovation. There are three types: Pioneers Close followers Late followers Growth strategies - In this scheme we ask the question, “How should the firm grow?”. There are a number of different ways of answering that question, but the most common gives four answers: Horizontal integration Vertical integration Diversification Intensification 

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SCOPE OF THE PROJECT

Marketing is a philosophy that leads to the process by which organizations, groups and individuals obtain what they need and want by identifying value, providing it, communicating it and delivering it to others. The core concepts of marketing are customers‟ needs, wants and v alues; products, exchange, communications and relationships. Marketing is strategically concerned with the direction and scope of the long-term activities performed by the organization to obtain a competitive advantage. The organization applies its resources within a changing environment to satisfy customer needs while meeting stakeholder expectations. Implied in this view of strategic marketing is the requirement to develop a strategy to cope with competitors, identify market opportunities, develop and commercialize new products and services, allocate resources among marketing activities and design an appropriate organizational structure to ensure the performance desired is achieved. There is no unique strategy that succeeds for all organizations in all situations. In thinking strategically about marketing many factors must be considered: the extent of product diversity and geographic coverage in the organization; the number of market segments served, marketing channels used, the role of branding, the level of marketing effort, and the role of quality. It is also necessary to consider the organization‟s approach to new product development, in particular, its position as a technology leader or follower, the extent of innovation, the organization‟s cost position and pricing policy, and its relationship to customers, competitors, suppliers and partners. The challenge of strategic marketing is, therefore, to manage marketing complexity, customer and stakeholder expectations and to reconcile the influences of a changing environment in the context of a set of resource capabilities. It is also necessary to create strategic opportunities and to manage the concomitant changes required within the organization. In this world of marketing, organizations seek to maximize returns to shareholders by creating a competitive advantage in identifying, providing, communicating and delivering value to customers, broadly defined, and in the process developing long-term mutually satisfying relationships with those customers.

OBJECTIVES OF REPORT

The purpose of research is to discover answer to questions through the applications of  questionnaire, observations and interviews. The main aim of research is to find out the truth which is hidden and which has not been discovered yet. The objective of the research fall in the following broad groupsTo evolve the strategies , to improve the sales. To assess the level of satisfaction of the customers. To find out expectations of consumers with regard to the products. To find out effectiveness of the marketing activities. To find out customer‟s awareness about the product.

Assess brand image, brand loyalty of customers. To find out the most favored features of the product. To assess the overall performance of the products.

INTRODUCTION TO RESEARCH METHODOLOGY

WHAT IS RESEARCH?

The term “research” pertains to a “search for facts”. It refers to a careful

and exhaustive investigation of a given phenomenon with a definite objective of attaining or enhancing one‟s knowledge level. In other words, it conveys a sense of deep and purposeful study through scientific and scholarly investigation. In short, research is a process whereby, one gains knowledge about any phenomenon-natural or human. “Research is a systematic investigation to find solutions to a problem”. Robert Burns

CHARACTERISTICS OF RESEARCH       

It is a Systematic and Critical Investigation into a Phenomenon. It adopts Scientific Method. Well-defined. It is Objective and Logical. It is based on Experience and Evidence. Research aims to find answers to questions and solutions to problems. Research is based on factual observations, quantified and recorded data.

IMPORTANCE OF RESEARCH

Research is very important in every field of human activity and society. Some of the important uses of research are :         

Aids in forecasting, decision  – making and planning, Helps in removing myths and ignorance, Imparts new knowledge, Helps to analyze new problem, Provide reliable information, Facilitates scientific study of business and society, Assists in evaluation of projects and plans, Very powerful in enhancing decision and formulating business strategies, Efficient management tool.

TYPES OF RESEARCH

1. DESCRIPTIVE: - It includes surveys and fact finding inquiries. Its main aim is to describe

state of affairs as exist at present. The researcher has no control over the variables. The researcher can report what has happened or what is happening. It is also known as x-post factor research. 2. ANALYTICAL: - In this research researcher has to use facts or information already available

and analyze ay to make a critical evaluation. 3. APPLIED: - Aims at finding a solution for immediate problems faced. It applies theories and

models already developed to the actual solution of the problem. Aim is not to develop theories but to test the theories in actual situation. 4. FUNDAMENTAL: - It is a formal and systematic process which aims to develop theories or

models. All important variables are identified in fundamental research. It involves selecting appropriate samples so that generalization can be done. 5. QUANTITATIVE: - Based on measurement of quantity or amount. It can be applied to those

concepts which can be expressed in terms of quantity. 6. QUALITATIVE; - Research is concerned with qualitative aspects. 7. CONCEPTUAL: - Related to some abstract ideas or theories. Generally used by philosophers

and thinkers to develop new concepts. 8. EMPIRICAL: - Relies on experience or observation without due regard for system or theories.

It is totally a data based research. Involves conclusion which are capable of being verified.

9. HISTORICAL: - This method involves the systematic examination of the past events to give

an account of what has happened in the past. This method collects facts of different periods by going back into the relevant past period. 10.SURVEY:- It involves a systematic and comprehensive study of particular community,

organization, group, etc., through interviews, telephone or mail survey with a view to analyze a given social problem and thereafter present the solutions in the form of recommendation.

RESEARCH PROCESS

Generally, research is understood to follow a certain structural process. Though the step order may vary depending on the subject matter and researcher, the following steps are usually part of most formal research, both basic and applied :

DIAGRAM OF RESEARCH PROCESS

Define Research Problem

Review concepts and theories Review previous research findings

Formulate hypothesis

Design research [Including sample design]

Review of literature Interpret and report

Data collection

Data analysis [Test Hypothesis if any]

1. FORMULATING THE RESEARCH PROBLEM:-

The first step in the research process is the formulation of research problem. The researcher must decide his area of interest and then decide the problem based on his knowledge and expertise regarding the subject matter. Initially problem can be stated in a general way and then the researcher should check the feasibility regarding the information, time, cost, and also about the tentative solution regarding the problem. Followed by this the researcher should give the problem statement. Two steps are involved in formulating research problem: Understanding problem thoroughly.  Rephrasing the same into meaningful terms. One way to formulate a problem is to preview previous research and discuss about with own colleagues or expert in the particular area. 2. EXTENSIVE LITERATURE SURVEY:-

Once problem is formulated a brief summary of it should be written down. At this function researcher should undertake extensive literature survey connected with the problem. He can review journals, government reports, books etc depending on his area of research. He must also review similar studies done previously as they act as guideline to the researcher for his research. 3. DEVELOPMENT OF A WORKING HYPOTHESIS:-

Working hypothesis is a tentative solution given by researcher in order to channelize its research process. Role of hypothesis is to keep the researcher on the right track the` researcher can discussed about hypothesis with its workers and experts in the fields. He also needs to check the availability of the data before formulating the hypothesis. 4. PREPRATION OF THE RESEARCH DESIGN:-

Research design is a plan made by the researcher to conduct further activities in logical manner. Formulation of a research design facilitates the research process. Research design like experimental design, factorial design, Latin square design, can be used by the researcher depending upon the research problem. Prepration of research design involves considering the following things:

Means of obtaining information, analysis of information, availability of time, cost factor and logical procedure.

5. DETERMINING THE SAMPLE DESIGN:-

All the items under consideration in any field of enquiring constitute a universe or population. It is not possible to get information from the whole population and therefore we select few items from the population. The items so selected constitute what is known as sample. The researcher must decide the way of selecting the sample from the population. Various types of  sampling designs like simple random sampling, judgmental sampling, snow ball sampling etc can be used by the researcher depending upon the problem. 6. COLLECTION OF DATA:-

Two techniques of data collection are used by the researcher: Primary data: - It includes observations, surveys, interviews, questionnaires etc.  Secondary data: - It includes internet, journals, reports, books etc. Researcher has to decide which of these he is going to use for collection of data. 7. EXECUTION OF THE PROJECT:-

This is the most important step in the research process. Researcher has to see whether the project is executed in a systematic manner and on the right time Occasional field visit should be made by the researcher to ensure that everything is going according to the plans. If  required training may be given to the assistant who will help the researcher in the execution of the project. 8. ANALYSSIS OF DATA:-

After data is collected researcher has to analyse it for its further use. Analysis includes organizing, coding, editing, tabulation and diagrammatic representation. A researcher can use various statistical tools and computers for the analysis purpose. 9. HYPOTHESIS TESTING:-

After analyzing the data the researcher is in a position on to test the hypothesis. Various statistical test are like E-test, F- test, Cai- square test are used by the researcher for testing the hypothesis.

10. GENERALISATION AND INTERPRETATIONS:-

If hypothesis is tested it may be possible for the researcher to give the generalize findings. On the other hand if there is no hypothesis the researcher has to explain the findings and this is known as interpretation. 11. PREPRATION OF THE REPORT:-

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Report writing is divided into three parts:Preliminary pages Main text End matters

In preliminary pages the reporter should write title of the project, data, acknowledgement, declaration followed by index, list of tables, graphs and charts if any. The main text contains introduction, procedure, findings, main reports and the conclusion. At the end of the report appendices should by enlisted. Bibliography i.e. list of  books, journals, reports, etc should be given at the end. The report should be written in a simple language and in a systematic manner for the easy understanding of the research. RESEARCH PROBLEM:-

“It refers to sum difficulty a researcher experiences in context of  theoretical situation and wants to obtain a solution for the same” “A problem statement may be defined as an interrogative statement which expresses the relationship  between two or more than two variable” CHARACTERISTICS OF RESEARCH PROBLEM:     

A problem statement must be written clearly usually in a question form. A problem statement must express relationship between two or more than two variable. A problem statement should be testable by empirical methods. A problem statement should avoid moral or ethical judgments. Problem statement should be of sufficient importance. Problem statement can be general or specific.

HYPOTHESIS:-

Hypothesis is a testable statement of a potential relationship between two or more variable or more that is advanced as potential solution to the problem. Hypothesis is a tentative solution given by the researcher for the problem. The hypothesis stated by the researcher may be or may not be true depending upon the problem.

CHARACTERISTICS OF HYPOTHESIS:        

Hypothesis should be clear and precise. Hypothesis should be capable of being tested. Hypothesis should state the relationship between variable. Hypothesis must be limited in scope and must be specific. Hypothesis should be consistent with must known facts. Hypothesis should be stated in a simple form. Hypothesis must be economical and must be testable within reasonable time span. Hypothesis must explain the fact that give rise to need for explanation. Hypothesis must always be stated in a sentence form.

RESEARCH DESIGN:-

Research design is an overall plan or scheme prepared by the researcher for executing the research study .It is an important stage in the process of conducting research as it facilitates systematic work on the research project. It acts as a guide for the researcher to work step by step on his research study .It is necessary as it facilitates the smooth conduct of research. “A research design is the arrangements of condition for collection and analysis of data in a manner  that aims to combine relevance t o the research purpose with economy in the procedure.” FEATURES OF THE RESEARCH DESIGN:      

Adequacy Control of variables Generalization/Interpretations Flexibility Appropriate Economical-cost wise, time wise Efficient-conduct the whole activity in a sequential manner.

SAMPLING:-

Sampling is an important concept that we practice in our day life. Sampling involves selecting a relatively small number of elements from a larger defined group of elements and expecting that the information gathered from the small group will allow judgments to be made about the larger group SAMPLING TECHNIQUES:-

There are different types of sampling techniques which are based on two factors viz, the representation basis and the element selection technique. On the representation basis, the sample may be probability sampling or it may be non-probability sampling.. SAMPLING TECHNIQUES

[A] Probability

[B] Non-probability

1. Simple random 2. Stratified random 3. Area or cluster

1. Quota 2. Accidental 3. Judgmental 4. Systematic 5. Snowball 6 Saturation & Dense

[A] Probability Sampling:-

These methods are those methods which clearly specify the probability or likelihood of inclusion of each element or individual in the sample. In his method each and every unit of the universe has an equal chance of getting selected as a sample. 1. Simple random Sampling:- It may be defined as one in which each and every individual of the

population has an equal chance of being included in the sample and also the selection of one individual is no way dependent upon selection of another individual.

2. Stratified random Sampling:- In SRS the population is divided into two or more strata or

groups based upon a single criteria. After doing this, researcher is going to pickup the samples randomly and constitute the sample unit. These divided populations are called as sub-populations and together they constitute the whole population. 3. Area or cluster Sampling: - In this generally geographic division of cities, states etc are made

on map and the desire number of sample size is randomly picked up from the divided areas.

[B] Non-probability Sampling:1. Quota Sampling:- It is one of the most important type of non probability sampling method

which is apparently similar to stratified random sampling. The difference between the two is that in the former the final selection of individuals is not random where as in the later the final selection of the individual is random. 2. Accidental Sampling:- Accidental Sampling is also known as incidental sampling. It refers to a

sampling procedure in which the investigator selects the persons according to his convenience. Here he does not cares about including the people with some specific trades, rather he is mainly guided by convenience and economy. From accidental sampling nothing can be generalize with confidence because the sample in no longer the representative of the population. 3. Judgmental Sampling:- In this method the investigator has some relief that the sample being

hand pick is typical of the population or very good representative f the population. A purposive sample is also know as fundamental sample because the investigator on the basis of his information makes a judgment regarding the concerned cases which are thought to be typical of  the population. 4. Systematic Sampling:- Systematic Sampling may be defined as drawing or selecting every Nth

person from a determined list of elements. Selecting every 5 th roll number in class of 60 student will constitute a systematic sampling. 5. Snowball Sampling:- Snowball

Sampling is socio-metric in nature. It is defined as having all the persons in a group or organization identified as their friends. Who in turn identify their friends and associates until the number of people the researcher wants is done.

DATA COLLECTION TOOLS:-

DATA SOURCES

Primary Data Observation

Interview

Secondary Data questionnaire & schedules

Internal sources

External Sources

The primary data are those which are collected a fresh and for the first time and thus happen to be original in character. It includes:PRIMARY DATA:

1. Observation 2. Interview

a. Personal interview b. Telephonic interview

3 Questionnaires

a. Fixed Response Questionnaire: b. Open End Questionnaire: c. Mail Questionnaire D. Face to Face Questionnaire:

SECONDARY DATA:-

The secondary data are those which have already been collected by someone else and which have already been passed been passed through the statistical process. 1. Internal sources

a. Sales and marketing reports b. Accounting and financial records c. Miscellaneous reports D. Internal Experts reports  2.

External Sources

a. Government Publications b. Non Government Publications c. Syndicate Services d. Trade associations-

COMPANY PROFILE

The Cadbury‟s Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadbury 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 intech 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”.

THE LEGEND CALLED CADBURY

1824 – A 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 adv ertised 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. Chocolate h as 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 Dair y 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.

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 merely as good as Swiss chocolate 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 flavor and smooth

creamy texture was ready to challenge the Swiss domination of the milk chocolate market. By 1913 it had become the company‟s bestselling 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. While advertising and label design have changed with fashion and considerable strides have been made in manufacturing technologies, the recipe for C adbury‟s Dairy Milk its „glass and a half of  full cream milk in every half pound produced‟ is still basically the same as when it was launched.

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. Chocolatiers have use their skills to make balanced recipe in which all the ingredients combine to produced chocolate with all the characteristics that enable full delicious taste to be enjoyed by the consumers. By today‟s standards the first chocolate for eating would hav e 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. Cadbury‟s Milk Tray – 1915 Milk Tray has maintained its popularity in the changing world since the milk chocolate assortment made with the famous Cadbury‟s Dairy Milk chocolate was first introduced in 1915. The name „tray‟ derived from the way in which the original assortment was delivered to the shops.

Originally Milk Tray was packed in five and as half pound boxes, arranged on trays from which it was sold loose to customers. The half pound deep  – lidded box with the traditional purple background and gold script was introduced in 1916, followed by one pound box in 1924. With its stylish, without frills presentation Milk Tray was the assortment for everyday, not just special occasion and it represented the best buy in the chocolate for millions of people. The pack design has been regularly updated and the assortment itself has changed in line with consumers taste and preferences. By the end mid – thirties the Cadb ury‟s Milk Tray assortment outsold all its competitions and today it is still one of the most popular boxes of chocolates in this country. 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 bottling plants 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”.

SWOT AND PEST ANALYSIS OF CADBURY SWOT ANALYSIS Strength

1. Very strong brand equity in India. 2. Due to its 54 years presence in India  – has deep penetration  – 2100 distributors; 450,000 retailers, 60 mid urban (22%) customers. 3. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% - leader in brown segment). 4. Low cost of production due to economic of scale. That means higher profits. Better market penetration. 5. 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. 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. Globalization: optimal use of global Cadbury Schweppes. Threats

a) Major :Due to low cost and highest brand equity, it is success in India. b) Minor :Globalization will bring in better brands for upper end of the market (Liest, Monarch, Godiva, etc…).

Conclusion:Will lose market share with globalization but will remain brand leader.

PEST ANALYSIS

P: Since the budget range is decontrolled, no political effects are envisaged. E: 1) Increasing per capita income resulting in higher disposable income. 2) Growing middle class/urban population  – increase in demand. 3) Low cost of production  – better penetration. S: 1) Per capita consumption expected to increase  – fashion. 2) Increasing gifts culture  – increase in demand . 3) Lower cholesterol than “mithais” (sweet meat) subsbstitute demand.

T: Will have to reinforce technology to in ternational levels once India is a “free” e conomy. 5 P’S OF MARKETING 1 - Product

The average company will compete for customer by conforming to his expectation consistently. But the winner will surpass them by constantly exceeding his expectation, delivering to his door step additional benefits which he would nev er have imagined . 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) Bourn vita 2) Drinking chocolate 3) Cocoa 2 - 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 c ater 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 Fruit and Nut Rs. 22 Gems Rs. 10 Break Rs. 5 Nutties Rs. 18 Bournvita (500 gm) Rs. 104 Drinking chocolate Rs. 50 3 - Physical Distribution – “Place”

Distribution Equity:It takes much more time and effort to build, but once built, distribution equity is hard 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 should know how to sell your products. The cardinal task before the Indian market in 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 in India? With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for long period. In a product and price parity situation, the brand that sells more is the one that reaches the highest number of customers. 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 to 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 heat affects 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 Cadbu ry,

they believe that selling confectionery is it like selling soft drinks.

4 - Promotion 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 customer memory, communication must first ensure exposure, grab his attention evoke his comprehension, grab his 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 addresses 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, unselfish conscious, pleasure  – seeking child within him – and 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 inserts his ATM card. It

tells the customer that this would be good time to get out of his 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 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 da y , 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. 5 - Positioning In 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  perception of them… Cadbury‟s is an anchor in sea of confectionary products. As a variety of competitive claims assails

her senses, today customer uses complicated decision making process to assess the alternative before making a purchase. Si nce Cadbury‟s is more clearly associated with a particular set of  attributes in terms of benefits and prices, the quicker becomes her search process. 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 June 1994, the company reworked the strategy for 5 star to make it a source of energy. In fact, before the launch of Perk, 5 star‟s energy bar positioning made it a

snacking chocolate. 3) Éclairs: competing in the chewable toffees segment. Éclairs was re-launched during the midnineties 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 sell it to 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 chocolate buttons appeal most to children and that is why Cadbury is re- targeting children.” 5) 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. 6) Perk: in September, 1995, 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 of 5 star, Perk was meant to be light snack-product for subduing the first pangs of hunger. 7) Bournvita: positioned as tasty health drink. While its competitors concentrated only on health aspect, Bournvita combined the nutritious value with taste.

MARKET SEGMENT AND MARKETING STRATEGIES OF CADBURY

Market 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 age 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.  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 stage.  The Real Taste of Rejuvenation (transformation) It was the market  – leader, but sales inched along. It focused firmly on its target segment, but the real buyer lay beyond. For seven long years, Cadb ury‟s Dairy Milk chocolate suffered stagnancy even as other consumer products boomed. Just how did the company rejuvenate an old brand to create the marketing megs-hit of the 1990s? It Stand First Among Second coming. And it wasn‟t so much a re-launch as it was a process of  rejuvenation. Over a period of 12 months, starting February, 1994, the Rs. 314 crore confectionery makers Cadbury embarked on the most outrageous repositioning exercise in the recent history of  Indian marketing. For, it systematically dismantled the franchise that the company had built over 30 years of its flagship brand, Cadbury‟s Dairy Milk (CDM) -Cadbury‟s Milk chocolate until 1986destroying the very fundamental of generic association that had made million of Indians refer to a bar of a chocolate as a “Cadbury”. More proof of the chocolate is in the eating: two years into process, CDM‟s market share at 25%,

with sale rising by an average 40% per annum. The Diagnosis Today, The Real Taste of Life campaign, which served up chocolate in general, and CDM in particular, into the consciousness of adult, has already become a classic of advertising and marketing. By 1993, Cadbury was desperatel y seeking growth for the brand… “With a market share of 70%, trying to win away customers from competit ors 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 sn ack in India. “In mature markets, chocolate straddle a co ntinuum, 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. “Cadbury‟s Was Caught In Its Own Trap”

How? The company had, over decades, created a context of chocolate consumption that was now chocking growth possibilities. “The baggage of the past was so overpowering that people didn‟t get influenced by minor shifts in the message ”.

In fact, the behavioral and attitudinal patterns conveyed by the communication to build the brand were proving restrictive. For, Cadbury had, using the traditional demographic variables of age, socio-economic groups, and usage intensity, positioned CDM as a product that elders  – typically, parents  – bought for children  – typically, their own. But admittedly – enduring values of love and sharing, parental affection, and reward that Cadbury had labored to associate with the brand, which had helped it forge a relationship with customers, had relegated it to being a special  – occasion item, ruling out increased individual consumption. After all, special occasion item, ruling out increased individual consumption. After all, special occasion were meant to be a rare. A typical Ad would show parents bringing home chocolate for their child. It would never, ever, show the child, or the parent, buying it for himself or herself. The punch line  – Sometimes Cadbury‟s Can Say It Better Than Words, and Nothing But The Best Will Do – reinforced the notion, with an unwelcome side  – effect: adults, as research showed, felt distinctly guilty and embarrassed about eating chocolate, whether alone or socially. “Not only were adults not indulging in cho colates, but they were also actively curtailing child consumption” solution? Forget children as the core consumer. Universalize the product, targeting

the parents. 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 w hy shouldn‟t it be sold as one? The first of the two commercial focused on functionality, purging the emotional element. The first commercial 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 unpaternal 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, and each casually munching away on chocolates. The less than – subtle messa ge: 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 about feelings. There had to be magic,

romance, love and emotion. These elements had been ripped away from the advertising. It has 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, Cadbur y‟s found that adult as

parents behave very differently from adults as adults. People forbid their children from having chips, but gorge themse lves. “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 CDM in a way that would appeal to the child lurking within the adult? To inject a modern flavor into CDM, 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” “The consumer will always tell what his current belief system is, not what it should be Cadbury‟s

 job was to mould his 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 Breakthrough 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 decided to test the commercial being devised by O&M‟s creative team no t 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. Nor was there much chance of his announcing an immediate change in behavior”. But why likeability

and comprehension? Simple: the first was meant to be the vehicle on which the daring idea-that adults should enjoy chocolate- would ride into the consumer‟s psyche. In other words, the commercial was meant to make him smile at first-and only then realize the import once of the message, wh ich 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.”

Thodi Se Pet Puja, Khabi Bhi Kahin Bhi!

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 on bringing out the child in the man . 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”…….. Brand

usage was perceived to cut across all age groups and 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.”

Dairy Milk had successfully enabled the free child in the consumer subsequent adverting used the same communication strategy. Kya Swaad Hai Zindagi Ka!

The next ad featured an on going match in the field. Think of a match India batting against Pakistan. The score, 6 runs to win with 1 ball left and India wins the match. The ad shows a girl dancing with jubilation on the cricket field when her hubby hits the winning stroke. The award winning campaign, designed by O & M was intended to rid the Indian chocolates eater of that guilt complex. The advertisement suggested, through not in so many words, that it was ok to be seen including in a chocolate in public. You could relate the sweetness of success of chocolate. The ad draws attention to the actual eats experience.

The fourth in this series was the girl with on her hands. The ad focused on showing how the girl relishes the Dairy Milk when she has mehandi on her hands. The idea behind this advertisement was to show the nature of chocolate as an impulse  – driven product. Post campaign saw a great turn around. Dairy Milk transformed in to a young full brand full of zest. It came to be recognized as an expression of spontaneity and in pulse. The campaign succeeded in softening attitude towards chocolate and lifting then out of the ream of  kiddies / special occasion only. It embraced a wide range emotion all build around them that chocolate means different things to different people at different times, but most importantly chocolate is Cadbury. 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. The new campaign has been launched in tandem with the old one 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!

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 tonne 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 broader  based, in the sense adults are an important target segment now. The reposting of Cadbu ry‟s Dairy Milk in 1994 as the „real taste of life (through the Slice of Life and Cricket commercial by Ogilv y 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 of 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 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 bornvita 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 brown 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 brown 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 in 2000. The company achieved a volume growth of 5.2%. This was achieved through innovative marketing strategies and focused advertising campaign flagship brand Dairy Milk. Net profit rose sharply by 41.8% to Rs. 520 million. Reduced material and energy cost and tighter 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 perk with 4%. For the Chocolate Company, Khane Walo Lo Ko Khane Ka Bhanna and the Karwa Cauth, Sports are clear winners. 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. New Launch

Cadbury target kids with Milk Treat: - It is a product that talks directly to the target consumer. The  product benefits have been defined as “The goodness of milk to the fun of chocolate”. it combines

both good health, multinutrition value of milk along with the pinch of fun and excitement. The kinds formally associate with Cadbury chocolate offering. Temptation :- It is aimed at the niche “international chocolate “ segment of the chocolate market a segment upgraded from brands such as Cadbu ry‟s to premium international offering such as Tolerance, Lindit and Hersheys. Roughly 5%of the total domestic consumption expected to grow to some 10%. This segment is too good to miss out on. ThePreviousCadbury‟s range available in India did no t offer consumer an option to upgrade to international chocolate within the Cadbury‟s fold. Temptation is an attempt to lug niche, priced Rs.

30.

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 man y packs‟.

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 Cadbur y‟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 development. 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 bran ds. • 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. • 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 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.

Changing Product Mix Contributing to turnover 1994 Contributing to turnover 2000 Chocolate 59% 64% Sugar Confectionary 9% 12% Food Drink 32% 24% 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 CADBURY SUCCESS STORY

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. 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 dub bed “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 sel ecting 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 in gredients in Cadbury‟s latest recipes for success. Right from the stand Cadbury Dairy Milk Chocolate success has been based on these factors:Quality Value for money Advertising 

Case Study

Prior to deciding on the communication strategy for Cadbury Dairy Milk it was important to understand the habits and mindset towards chocolates. A large scale usage and attitude study was conducted among adults. The research revealed that: Adults were primarily purchasers, and not consumers of chocolates. However, as for most children‟s product, they exercised a strong influence on the children‟s consumption behavior. Adults acted as gatekeepers of sorts when it came to food items. Considering the advertising history, it came as no surprise that chocolate were perceived as “kiddy” product and certainly not part of the repertoire for products consumed socially. Chocolate

consumption among adults evoked feeling of self indulgence and guilt. Chocolates seemed to offer virtually no significant positive and certainly no overt psychogenic benefits. Food and nutritive values associated with chocolates were low. And, in fact they were categorized as a hazard, being responsible for obesity, dental and respiratory problems. Brands images were undifferentiated and the c ategory had low saliency, “can do without”. Purchase was almost always planned and triggered by motives ranging from celebration, bribing and reward to gifting. For an impulse product category such as chocolates, this was likely to limit market growth. This conditioning and social learning about chocolates was restricting consumption among adults as well as driving them to restrict children‟s consumption.

There was evidence to suggest the need for shifting focus from child as chocolates consumers to adult‟s communication, hitherto, had always addressed adults as purchasers rather than consumers. Communication had positioned chocolates for specific situations, thus imposing boundaries for the growth of the market. Emphasis on casual everyday situation could help promote core consumption opportunities. For low involvement product categories like chocolates which offer emotional and sensory benefits, it is suggested that communication is most effective with repeated likeable ads promising unique and authentic emotional benefit a shift from portraying everyday moments as an opposed to special ones. The radical change however was focus on bringing out the spontaneity in adults. And, finally CDM a symbol of manipulation was henceforth to symbolize fun, enjoyment and good times. The mnemonic of a glass and half milk was to reinforce the goodness of milk and cue physiological benefits. The only variation was in the Rituals, where communication had shifted from, and special occasion to every moment. A strong volume grow th was witnessed in the early 90‟s when Cadbury, repositioned chocolates from children to adult consumption. The biggest opportunity is likely to stem from increasing the consumer base. The Outlook

The Cadbury management has cut down on its growth target by setting a 10% average volume target for next 3 years (as against previous growth) coupled with price increases, this could translate into top line growth of 14  – 15%. This target also appears difficult to achieve given the consumer slowdown and the fact that company is dependent on a single category chocolates to drive growth. Effect in expanding confection any portfolio have also not yielded desired results. The management has declared its intention to focus only on Éclairs (which forms a major position of its 4% share in the confectionary segment) for the time being in this category. In chocolates too ones remain on the 2-3 key brands as CDM, Perk claims which have supported

growth in the past. While new launched such as milk chocolate and Perk slims have been doing well, the management expects that dairy milk would continue to be the central driving force in Cadbury‟s growth and that all other brands would remain peripheral to this central brand. Few Concerns Which 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 Cadbur y‟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 i s 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 has 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? POSITION OF THE VARIOUS BRANDS IN THE MARKET HAS BEEN LISTED BELOW Cadburys brands Positioning Nestle‟s brands Positioning

Cadbury Dairy Milk Fruit n Nut Creamy bar Roast Almond Crackle Bournvita “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” 

PROJECT DESIGN

For the study and research of problem proper material has to be selected for investigation. This collection of data determines the study thus the methods are mentioned below:METHOD USED / SOURCES OF DATA COLLECTION:

PRIMARY DATA:

This project has utilized both primary and secondary data. The primary data collected for this purpose was on the basis of a field survey. A questionnaire prepared for this purpose, were filled upon the basis of interview and free discussion with selected respondents and through observation method. In order to conduct field survey, interview and questionnaire filled in by the youngsters and taken as the study area. The respondents view and opinion were also taken into consideration. SECONDARY DATA:

In order to conduct the research, much of the data is external in nature. Important contributions in the subject channel, survey materials, websites i.e. internet are taken into consideration. TOOLS USED FOR ANALYSIS:

Various statistical techniques are used to interpret the data as per requirement like: Percentage, Simple graphs, Bar diagrams (multiple as well as subdivided), Pie charts or circle charts etc. SAMPLE SIZE:

It is essential to have proper sampling for the proper study of the problem. It means that the sample should be of proper size. If the sample is either too small or too big, it shall make the study difficult. The size of the sample can be decided after considering the various factors of study thus an optimum sample in survey is 30. This sample selection is done through “Stratified sampling method”, because the reliability

can be achieved even with the help of the small-sized sample. SAMPLE AREA:

For the survey of this project various areas of Pune city were taken into consideration like Kothrud, Karvenagar, Deccan etc.

90% 90% 80% 70% 60% 50% 40% 30% 10%

20% 10% 0% Yes

No

Out of 50 respondents 45 said yes and 5 said no when they were asked “Do you eat chocolates? “

Percentage 50% 50% 40% 30% 20%

20%

Percentage

20% 10% 10% 0% Cadbury

Amul

Nestle

Others

It was noticed that out of 50 people 25 people prefer Cadbury Products while 10 people preferred Nestle chocolates, 10 more people preferred Amul chocolates and just the remaining 5 people preferred other brands

Percentage 40%

40%

40% 35% 30% 25% Percentage

20% 15%

10%

10%

10% 5% 0% Superstore Retail store Restaurant

Movie

It was observed that 20 people preferred buying chocolates from a superstore and 20 more people preferred buying chocolates from a retail store while only 5 people preffered buying chocolates from a restaurant and 5 more from movies.

100% 100%

50%

0%

0% Yes No

Out of 50 people, each and every person was aware about the brand Cadbury and there was nobody who was not aware about Cadbury.

Percentage 4% 14%

2%

40%

Television Friends Newspapers

40%

Campaigns Others

20 people got to know about Cadbury through television and 20 more got to know about Cadbury from their friends while 7 got to know through newspapers, 2 people got to know through campaigns and just 1 person got to know about cadbury through other sources.

80% 76% 70% 60% 50% 40% 30% 24%

20% 10% 0% Yes

No

It was observed that 38 people were aware about Cadbury campaigns while the remaining 12 had no idea about it.

Percentage 4%

4% 22%

10%

5 Star Dairy Milk

10%

Perk Temptations 50%

Bournville Gems

It was observed that 25 people preferred dairy milk, 11 people preferred 5star, 5 people preferred perk, 5 people preferred temptations, 2 people preferred bournville and the remaining 2 people preferred gems.

120% 100% 80% 60%

Series1

40% 20% 0% Yes

No

It was observed that out of all the 50 people each and every person said that Cadbury’s chocolates were easily available in the market and there was nobody who disagreed with this.

100%

84%

80% 60% 40% 20%

16%

0% 1 2

Regarding the famous tagline of Cadbury, “Kucch Meetha Ho Jaye”, 42 people said it is a good tagline while the remaining 8 did not find it good.

Percentage 6%

40%

30%

Weekly Daily Monthly Once in a blue moon

24%

20 people said that they purchase Cadbury chocolates weekly, 12 people said daily, 15 people said monthly and 3 people said once in a blue moon.

26%

Yes no

74%

It was observed that the purchase of Cadbury was impulsive for 37 out of 50 people and not impulsive for the remaining 13.

Percentage 30% 25% 20% 15% 10% 5%

30% 22%

16% 6%

20% 6%

Percentage

0%

When it was asked what affected the purchase of Cadbury 22% people said advertising, 30% said it depended on the occasions, 6% people said because of the influence of friends, 16% people said due to the attractive displays, 20/5 people said due to the brand ambassadors and the remaining 6% percent people due to the ingredients in it.

90% 82%

80% 70% 60% 50% 40% 30% 20%

14%

10%

6%

0% 0

0.5

1

1.5

2

2.5

3

3.5

When asked whether the entry of new brand would affect the purchase of Cadbury, 3 people said yes, 47people said they will not buy another brand and remaining 7 percent people were not sure about it.

Percentage

28%

Family

50%

Medium

22%

Small

0%

10%

20%

30%

40%

50%

Percentage

50% 45%

44%

40% 35% 32%

30% 26%

25% 20% 15% 10% 5% 0% Yes

No

May be