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A project report on analysis of cadbury chocolate in the market with its competitors — Document Transcript

1. Projectsformba.blogspot.com PROJECT REPORT On “ANALYSIS OF CADBURY
CHOCOLATE IN THE MARKET WITH ITS COMPETITORS” AT SUBMITTED FOR THE
AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION SESSION: 2007-
2009PROJECT GUIDE :- SUMITTED BY :- ADVANCE INTSTITUTE OF MANAGEMENT
AFFILAITED TO UPTU LUCKNOW BATCH : 2007-2009

2. Projectsformba.blogspot.com TABLE OF CONTENTS INTRODUCTION EXECUTIVE
SUMMARY OBJECTIVE OF RESEARCH RESEARCH METHODOLOGY ANALYSIS &
OBSERVATION DATA ANALYSIS AND FINDINGS CONCLUSION
RECOMMENDATIONS BIBLIOGRAPHY QUESTIONNAIRE

3. Projectsformba.blogspot.com Declaration by the Candidate………………………. student of
MBA 3rd Sem. OF ADVANCEINSTITUTE OF MANAGEMENT GAZIABAD (2007-09).
herebydeclare that the research project report titled “ANALYSIS OF CADBURYCHOCOLATE
IN THE MARKET WITH ITS COMPETITORS”Is the outcome of my own work and same has not
been submitted to anyuniversity/ institutions for the award of any degree or any
professionaldiploma.Date: ( ) Sign of candidate

4. Projectsformba.blogspot.comACKNOWLEDGEMENTThe successful completion of any work
would be always beincomplete unless we mention the valuable cooperation andassistance of
those people who were a source of constant guidanceand encouragement , they served as
bacon light and crowned ourefforts with success.I would like to extend my sincere gratitude to
our Prof. ……………….for his guidance.

5. Projectsformba.blogspot.com PREFACEThe Cadbury’s India’s number one chocolate is able
to share withtheir market insights based upon unparallel breath of chocolateexperience.The
merge in 1969 with Schweppes and the subsequent developmentof the business have led to
Cadbury Schweppes taking the led inboth, the confectionery and soft drink market Intec UK
and becominga major force in the international market. Cadbury Schweppes
todaymanufactures product in 60 countries and a trade in staggering 120.This project is a
sincere effort to look for the market potential inchocolate and confectionery industry. A
descriptive researchprocedure had been applied to come to the conclusions of the project.A
detailed questionnaire had been prepared and the responses of theconcerned people had been
collected for the analysis. The project laterconcluded in recommending the market potential of
the chocolate andconfectioneries.

6. Projectsformba.blogspot.com EXECUTIVE SUMMARYTITLE: ANALYSIS OF CADBURY
CHOCOLATE INTHE MARKET WITH ITS COMPETITORS.Rationale of study:The Cadbury’s
Inc has taken the opportunity to offer us a broaderview of chocolate category. The Cadbury’s
India’s no.1 Chocolate isable to share with their market insights based upon unparalleledbreath
of chocolate experience. Cadbury has grown from strength tostrength with new technologies
being introduced to make theCadbury confectionary business, one of the most efficient in
theworld. This report study about market share and different strategywith its

competitors.Objective: 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.

7. Projectsformba.blogspot.comImportance: 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.Research Methodology:The research conducted by Exploratory Research this type of
researchis Qualitative and Quantitative. Qualitative refers to the charactersof 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 studyhas been
undertaken, how the research problem has been defined, inwhat way and why the hypothesis
has been formulated, what datahas been collected and what particular method has been
adopted anda host of similar other question are usually answered when we talk ofresearch
methodology concerning a research problem or study.

8. Projectsformba.blogspot.comSampling:The data was to be collected only from the
Consumers and Retailers.A questionnaire was prepared and interviewing with Retailers
andConsumers.A decision has to be taken concerning a sample unit before selectingthe
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 finiteuniverse to constitute a sample
size. The survey was conducted of 50outlets.Analysis:The data was tabulated manually and
was also analyzed manuallyexcel 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.

9. Projectsformba.blogspot.comConclusion:This company project has demonstrated
“CADBURY’S MARKETINGAND COMPETITIVE STRATEGIES” that has proved to be
extensivethrough, and of great benefit to the company in furthering itscompetitive advantage.In
this project it possible to see the success of Cadbury’s in itsindorse 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

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.

10. Projectsformba.blogspot.com


12. Projectsformba.blogspot.com INTRODUCTIONThe Cadbury’s Inc has taken the opportunity
to offer us a broaderview of chocolate category. The Cadbury’s India’s no.1 Chocolate isable to
share with their market insights based upon unparalleledbreath of chocolate
experience.Cadbury has grown from strength to strength with new technologiesbeing
introduced to make the Cadbury confectionary business, one ofthe most efficient in the world.
The merge in 1969 with Schweppesand the subsequent development of the business have led
to CadburySchweppes taking the led in both, the confectionary and soft drinkmarket Intec UK
and becoming a major force in the internationalmarket. Cadbury Schweppes today
manufactures product in 60countries and a trade in staggering 120. The Cadbury story is
afascinating story of a family business that grew in one of the biggest,most loved chocolate
brand in the world. A story that you willremember as the story of “The taste of life”.This project
is a sincere effort to look for the market potential inchocolate and confectionery industry. A
descriptive researchprocedure had been applied to come to the conclusions of the project.A
detailed questionnaire had been prepared and the responses of theconcerned people had been
collected for the analysis. The project laterconcluded in recommending the market potential of
the chocolate andconfectioneries

13. Projectsformba.blogspot.comThe legend called Cadbury1824 – A once business was
opened in 1824 by a young Quaker,John Cadbury, in Bull street Birmingham was to be the
foundation ofCadbury Limited, now one of the world’s largest producer ofchocolate.1831 – By
this year the business had changed from a grocery shopand John Cadbury had become a
manufacturer of drinking chocolateand cocoa. This was the start of Cadbury manufacturing
business asit is known today. A larger factory in Bridge Street Birmingham wasrented in 1847,
John Cadbury was joined by his brother Birminghamand the business became Cadbury Brother
of Birmingham.1861 – John Cadbury resigned his business and handed over to hissons,
Richard, 25 and George, 21 who after 5 difficult years almostshut down the business to take up
other vocation. Fortunately forgeneration of chocolate lovers, they didn’t.1866 – Saw a turning
point for the company with the introduction ofa process for pressing the cocoa butter from the
coca beans. This notonly enabled Cadbury Brothers to produce pure coca essence, but
theplentiful supply of coca butter remaining was also used to make newkind of eating


chocolate. The essence was advertised as ‘Absolutelypure, therefore best’.1879 – Business
prospered from this time and Cadbury Brotheroutgrew the Bridge Street factory, moving in 1879
to a ‘Greenfield’ sitesome miles from the center of Birmingham which came to callBourneville.
The opening of the Cadbury factory in a garden alsoheralded a new era in industrial relations
and employee welfare with

14. Projectsformba.blogspot.comjoint consultation being just one of the introduced by the
pioneeringCadbury Brothers.1899 – In this year the business private limited company –
CadburyBrothers Limited. Progress since the start of the century through theinter – war years
onward ahs been rapid. Chocolate has moved beinga “luxury” item to well within the financial
reach of everyone.1905 – Cadbury has many famous brands with one of major successstory
being Cadbury’s Dairy Milk chocolate launched in 1905, todayBritain’s favorite moduled
chocolate bar.Cadbury today is the market leader in the U.K chocolate confectionarymarket,
employing the most advanced processing technology andmanagement information and control
techniques. The company is theconfectionary division of Cadbury Schweppes plc which is
major forcein the confectionary and soft drinks international market.World - wide Cadbury is
one of the pre – eminent names inconfectionary with impressive range of famous
brands.Quality has been the focus of the Cadbury business from the verybeginning as
generations have worked to produce chocolate with thatvery special taste, smoothness and
snap, so characteristics ofCadbury’s chocolate.

15. Projectsformba.blogspot.com Design DevelopmentMilk chocolate for eating was first made
by Cadbury in 1897 byadding milk powder paste to the dark chocolate recipe of cocoa
mass,cocoa butter and sugar. By today’s standards this chocolate was notparticularly good as
it was very coarse and dry and was not sweet ormilky enough for public tastes.At that time
there was a great deal of competition in the U.K fromcontinental manufactures, not only the
French with their fancychocolates but also from the Swiss, who were renowned for their
milkchocolate. Led by George Cadbury junior, the Bourneville experts setout to meet the
challenge. A considerable amount of time and moneywas spent on research and new plant
design to produce the newchocolate in much large quantities.A new recipe was formulated
fresh milk and new productionprocesses were developed to produce milk – chocolate not as
merelyas good as but better than the imported milk chocolate.Four years of hard work were
invested in the project and in 1905what was to be Cadbury’s top selling brand was launched.
Threenames were considered Jersey Highland Milk and Dairy Maid. DairyMaid became Dairy
Milk and Cadbury’s Dairy Milk with its uniqueflavor and smooth creamy texture was ready to
challenge the Swissdomination of the milk chocolate market.By 1913 it had become the
company’s best selling line and in the midtwenties Cadbury’s Dairy Milk gained its status as


the brand leader, aposition that it has held ever since. Today more than 250 million barsof
Cadbury’s Dairy Milk are made every year and sales reach over 100million Pound in value.

16. Projectsformba.blogspot.comWhile advertising and label design g-have changed with
fashion andconsiderable strides have been made in manufacturing technologies,the recipe for
Cadbury’s Dairy Milk its ‘glass and a half of full creammilk in every half pound produced’ is still
basically the same as whenit was launched.Cadbury’s Dairy Milk StoryChocolate has been
enjoyed by successive generation since themanufacturing process was developed in the
Victorian Times. Goodchocolatiers is an art form depending on recipe traditions, which
havegrown over the years. Chocolatiers have use their skills to makebalanced recipe in which
all the ingredients combine to producedchocolate with all the characteristics that enable full
delicious taste tobe enjoyed by the consumers.By today’s standards the first chocolate for
eating would have beenconsidered quite unpalatable. It was the introduction of the VanHouten
cocoa press from Holland that was the major break throughin the chocolate production as it
provided extra cocoa butter neededto make a smooth glossy chocolate.Cadbury’s Milk Tray –
1915Milk Tray has maintained its popularity in the changing world sincethe milk chocolate
assortment made with the famous Cadbury’s DairyMilk chocolate was first introduced in
1915.The name ‘tray’ derived from the way in which the original assortmentwas delivered to the
shops. Originally Milk Tray was packed in fiveand as half pound boxes, arranged on trays from
which it was soldloose o customers. The half pound deep – lidded box with thetraditional purple
background and gold script was introduced in1916, followed by one pound box in 1924.

17. Projectsformba.blogspot.comWith its stylish, without frills presentation Milk Tray was
theassortment for everyday, not just special occasion and it representedthe best buy in the
chocolate for millions of people. The pack designhas been regularly updated and the
assortment itself has changed inline with consumers taste and preferences.By the end mid –
thirties the Cadbury’s Milk Tray assortment outsoldall its competitions and today it is still one
of the most popular boxesof chocolates in this country.

18. Projectsformba.blogspot.com PRODUCT PROFILECHOCOLATE &
CONFECTIONARYDairy MilkFruit & NutPicnicPerkGemsÉclairsNuttiesTemptation

19. Projectsformba.blogspot.com FOOD DRINKSOvaltineDrinking chocolateBournvitaHorlicks

20. Projectsformba.blogspot.com Cadbury’s Fruit & NutNew LaunchCadbury target kids with
Milk Treat: - It is a product that talksdirectly to the target consumer. The product benefits have
beendefined as “The goodness of milk tothe fun of chocolate”. it combinesboth good health,
multinational valueof milk along with the values of funand excitement. The kinds

formallyassociate with Cadbury chocolateoffering.Temptation :- It is aimed at the niche
“international chocolate “segment of the chocolate market a segment how upgrade from brands
such as Cadbury’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. The Previous Cadbury’s range available in India did not offer
consumer an option to upgrade to international chocolate within the Cadbury’s fold. Temptation
is an attempt to lug niche, priced Rs. 30.

21. Projectsformba.blogspot.comThe Cadbury StoryCadbury’s success storyIn 1984, John
Cadbury founded U.K. company with one aim:- tocreate the highest quality chocolate. By1969,
when Cadbury mergedwith the soft drink giant. Schweppes, Cadbury brands were
alreadyfamous all around world.Today Cadbury’s production are enjoyed in 120 countries, with
40chocolate confectionary brands, Cadbury dominated markets as far asthe U.K. and Australia
that’s why Cadbury have been dubbed “Theworld’s master chocolate makers”.The secret of
Cadbury’s successWhat is the secret of Cadbury’s continuing success first there’s thecareful
selection of the finest coca beans from west Africa, as well astasty hazel nuts from Turkey and
the fine sheet and choicest naturalingredient available to us anywhere.Finally there’s skillful
marketingCadbury always takes extreme care in selecting and marketing theright range of
product in every cause.The right product, the right partners, the right marketing, thepromotional
back up and the right employees. These are the ingredientsin Cadbury’s latest recipes for
success.Right from the stand Cadbury Dairy Milk Chocolate success has beenbased on 4
factors:- Quality Value for money AdvertisingAmul Chocolates

22. Projectsformba.blogspot.comAMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk
Solids,Chocolate massComposition: • 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.Gujarat Cooperative Milk Marketing
FederationGCMMF: An OverviewGujarat Cooperative Milk Marketing Federation (GCMMF) is
Indiaslargest food products marketing organisation. It is a state level apexbody of milk
cooperatives in Gujarat which aims to provideremunerative returns to the farmers and also serve
the interest ofconsumers by providing quality products which are good value formoney.

23. Projectsformba.blogspot.comMembers: 12 district cooperative milk producers UnionNo. of
Producer Members: 2.36 millionNo. of Village Societies: 11,333Total Milk handling 6.9 million
litres per daycapacity:Milk collection (Total - 1.81 billion litres2003-04):Milk collection (Daily
4.97 million litresAverage 2003-04):Milk Drying Capacity: 511 metric Tons per dayCattlefeed
manufacturing 2340 Mts per dayCapacity: Sales Turnover Rs (million) US $ (in million)1997-98
11140 3551998-99 13790 4001999-00 15540 4502000-01 18840 4552001-02 22192 4932002-03

11140 3551998-99 13790 4001999-00 15540 4502000-01 18840 4552001-02 22192 4932002-03
22185 4932003-04 22588 5002004-05 23365 5002005-06 27457 5752006-07 28941 616Amul
BrandsQuality is the essential ingredient in all of our brands and the reasonwhy millions of
people choose Nestlé products every day. Our

24. Projectsformba.blogspot.comconsumers have come to trust in Nestlé’s commitment to
excellenceand turn to Nestlé brands to maintain nutritional balance in a fastpaced world.Baby
Foods: Nutrition that suits the needs of your baby.Dairy Products: From shelf-stable solutions
to chilled dairy.Breakfast Cereals: Start your day out healthy with Nestlé BreakfastCereals.Ice
Cream: Discover the world of delicious Nestlé Ice Cream.

25. Projectsformba.blogspot.comChocolate & ConfectioneryDelighting the senses with a range
of tastes and textures.Prepared Foods: Preparing well-balanced meals is a snap with
Nestlé.Beverages: Drink to a healthy, active life with Nestlé beverages.Food Services: Providing
food and beverage professionals with a widerange of solutions.Bottled Water:

26. Projectsformba.blogspot.com Capturing nature in its purest form.Petcare: Nutrition, health
and wellness for your pet.

27. Projectsformba.blogspot.com NESTLE INDIATHE NESTLE India stock has been bubbling
with activity in anotherwise listless equity market.Till date, the stock has surged 77 per cent
from its low of Rs 304 inMay 2000 and now commands a valuation 39 times the
expectedearnings for 2000. This is steep by FMCG standards.The recent surge in the stock is
partly driven by the announcement bythe parent, Nestle SA, that it would use the creeping
acquisition routeto mop up another five per cent in Nestle India through open-marketpurchases.
But improving the stocks valuation can also be traced togood financial performance in a market
starved of healthy earningsnumbers.On a comeback trailThe resumption of its coffee exports to
Russia and a favourable inputprice environment pepped up Nestle Indias net profit growth to 28
percent in the first nine months of 2000. Sales growth in this period was

28. Projectsformba.blogspot.com10.4 per cent, with domestic sales rising 9.8 per cent and
export sales13.8 per cent. In reality, the growth in sustainable net profits washigher than
reported as the company took an additional one-timecharge of Rs 14.70 crore in the first nine
months of 2000 forprovisions against contingencies.Unusually, low input prices may have
contributed considerably tomargin expansion. Continuing surpluses in global production
havepushed both coffee and cocoa prices (the two key inputs for NestleIndia, apart from milk)
to historic lows in 2000. While coffee pricesare hovering close to their seven-year lows, cocoa
prices recentlybounced off their lowest levels in three decades.With global agencies
forecasting high carry-in stocks for the nextseason, the soft input price advantage could be

with Nestle for thetime being. Does this mean Nestle India will sustain its healthyearnings
performance over the next couple of years? This will dependon its ability to revive sales growth
in its domestic product categories.Greener pastures at homeNestles 10.4 per cent sales
growth in the first nine months of 2000 ispartly magnified by the low base of comparison. The
cessation ofcoffee exports to Russia due to the economic crisis there, led to a 38per cent drop
in export sales (and a 5 per cent drop in net sales) forNestle India in 1999.Instant coffee
exports to Russia resumed this year, but the businessremains poor because realisations have
fallen in line with green coffeeprices. Since realisations in the export market are unlikely to look
upin the next year, Nestle will continue to look to its domestic productportfolio to sustain
earnings growth.

29. Projectsformba.blogspot.comIn recent times, as with other FMCG companies, Nestle
Indias toplinegrowth in the domestic market was unimpressive, at around 8 percent in 1999 and
9.8 per cent in the first nine months of 2000. In thedomestic market, Nestle India has
traditionally derived its revenuesfrom five product baskets -- coffee (Nescafe Select, Sunrise);
milkproducts (Milkmaid condensed milk and ready mixes, Coffeematecoffee creamer, Everyday
Dairy Whitener); weaning foods for infants(Cerelac, Nestum, Lactogen);
chocolates/confectionery and maltedbeverages (Milo, KitKat, Charge, Munch, Polo); and food
products(Maggi noodles, soups).Cash cows slow downOf these, weaning foods and milk
products are the cash cows, withdominant market shares in both businesses. But as these are
matureproducts, they appear likely to deliver steady, and not scorching,growth rates. Sales
growth in these businesses was less than five percent in 1999-2000.In chocolates and instant
coffee, the growth prospects appearbrighter, but Nestle faces intense competition from the
players withthe dominant market shares. While Unilever and Tata Coffee aresignificant threats
in the coffee market, the market leader CadburyIndia has been a potent threat in the chocolate
confectionery market.Nestles Kitkat has actually ceded market share to Cadburys Perk inthe
past year. The market for specialised food products such as soupsand noodles holds healthy
growth potential. But the market isrelatively small and players such as International Bestfoods,
Unileverand Dabur are vying with a host of imported brands and regionalplayers for a share of
the pie.

30. Projectsformba.blogspot.comStretching existing businessesOver the past year, Nestle has
devoted considerable attention to theexpansion of its domestic businesses. It has drawn
brands such asCoffeemate coffee creamer, Frappe cold coffee and Nescafe Gold fromthe
Swiss parents portfolio to expand its milk products and beveragesrange. Incidentally, the
inputs from the parent do not come free.Nestle India paid its parent a Rs 53.69-crore royalty in
1999 (netprofits for the year were Rs 98.47 crore). Royalty payments accountedfor 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 andchocolate brands. Products such as KitKat and Munch in low-unitprice packs
have been used to encourage trial and bolster flaggingvolumes. But these moves will take time
to pay off.However, the revival in the 2000 third quarter domestic sales isheartening. For the
quarter ended September 2000, Nestle reportedan 18 per cent growth in domestic sales
(export sales declined 8 percent due to lower realisations). Considering that Nestle has
reducedboth coffee and chocolate prices over the past year and held otherproduct prices, this
indicates volume growth of a higher order.A plan to expand the network of Nescafe vending
machines andestablish coffee bars to encourage out-of-home consumption of coffeeis also on
the cards.Testing the watersOver the past year, the company has also announced forays into
threenew areas -- liquid milk, bottled water and biscuits. The foray intobiscuits is through the
joint venture Excelsia Foods, so thecontribution to Nestles revenues may at best be in the form
ofdividends for now.

31. Projectsformba.blogspot.comLiquid milk and bottled water are businesses that hold
immensegrowth potential. Larger players can expand through higherpenetration levels and at
the expense of the unorganised segment.However, both these segments are quite crowded
with feature listedand unlisted players which have considerable financial muscle.In the liquid
milk segment, Nestle will be up against the formidableAmul, apart from a host of private dairies
with established clientele.In the bottled water market, the market leader, Bisleri (of
ParleProducts), has had to contend with competition from scores of me-toobrands, apart from
Pepsis Aquafina, Coca-Colas Kinley. Goingforward, competition is only likely to increase, with
Britanniaplanning to launch more bottled water brands from its foreigncollaborator Danones
portfolio (Evian, one of the largest bottled waterbrands, is already on shop shelves).Striving for
nichesNestle India has already launched two bottled water brands in thedomestic market -- the
internationally renowned Perrier, followedrecently by its sparkling mineral water brand, San
Pellegrino (reputedto be sourced from the Swiss Alps).However, both products are for upmarket
consumers. The premiumpricing suggests that the products will remain niche products
withrelatively small target markets. Pure Life, the mass market bottledwater brand to be
launched shortly, will determine the success orfailure of Nestles bottled water foray.Nestle
India has also shied away from the mass market for liquid milkin plastic pouches, and instead
restricted itself to ultra heat treated(UHT) milk in Tetrapacks. The product is priced at a
substantialpremium to the other local brands.

32. Projectsformba.blogspot.comInvestment outlook: Nestles new product forays are into
extremelycompetitive markets and investments in the new businesses are likelyto be high over
the next few years.In this respect, the advantage of soft input prices, high cash flowsavailable


from the stable businesses (such as weaning cereals andcoffee) and the financial might of the
parent, Nestle SA, will standNestle India in good stead.The royalty to the parent should ensure
that Nestle India continues toenjoy ungrudging access to the parents product portfolio. In
manyrespects, in India Nestle is pitted against its key adversariesworldwide -- Groupe Danone
and Unilever. In the foods business atthe global level, both companies are considerably smaller
than NestleSA.But marketing prowess, rather than size is likely to determine thesuccess of
Nestle Indias new product forays in the next couple ofyears. Since the high growth rates of this
are partly on account of thelow base of last year, the growth rates are likely to reach
moremoderate levels next year. The stock continues to be a goodinvestment option for
investors with a three-year horizon. But sincethe recent uptrend is partly on account of factors
unrelated to thefundamentals, there could be some downside to the stock in the near-term.


34. Projectsformba.blogspot.com OBJECTIVE OF THE PROJECTMy main objective of the
study on this project is to demonstrate themarketing strategies of Cadbury India Ltd. To
analyze the marketingstrategies of the company with its competitor in the market. Followingare
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. .

35. Projectsformba.blogspot.com IMPORTANCE OF THE STUDYThis report gives the help to
the marketers for analyzing the differentcompetitors in the chocolate industry. These are the
following someimportance of this research report as under: 6) This report is useful for the
researchers who are willing to do research on the Cadbury chocolate and its present
competitors in the market. 7) This report shows the problems associated with the Cadbury
industry in the market as it helps in removing these problems. 8) This report can be useful as a
secondary data for chocolate industry. 9) This report helps in knowing the current and future
scenario of confectionary industry. 10)This report helps in knowing market position of different
confectionary industry..


37. Projectsformba.blogspot.com RESEARCH METHODOLOGYAchieving accuracy in any
research requires in depth study regardingthe subject. As the prime objective of the project is
to compareCadbury with the existing competitors in the market and the impactof Nestle on

Cadbury, the research methodology adopted is basicallybased on primary data via which the
most recent and accurate pieceof first hand information could be collected. Secondary data
has beenused to support primary data wherever needed.Primary data was collected using the
following techniquesQuestionnaire MethodDirect Interview Method andObservation MethodThe
main tool used was, the questionnaire method. Further directinterview method, where a face to
face formal interview was taken.Lastly observation method has been continuous with
thequestionnaire method, as one continuously observes the surroundingenvironment he works
in.

38. Projectsformba.blogspot.comProcedure of research methodology# Target geographic area
was Delhi. NCR.# To this geographical area questionnaire was given, thequestionnaire was a
combination of both open ended and closedended questions.# The date during which
questionnaires were filled was between sixweek.# Some dealers were also interviewed to know
their prospective.Interviews with the honour of retailer of Cadbury were alsoconducted.# Finally
the collected data and information was analysed andcompiled to arrive at the conclusion and
recommendations given.Sources of secondary dataUsed to obtain information on, Cadbury and
its competitor history,current issues, policies, procedures etc, wherever required.# Internet#
Magazines# Newspaper

39. Projectsformba.blogspot.com ORGANIZATIONAL STRUCTURE MANAGING DIRECTOR
GENERAL MANAGER VICE PRESIDENTMARKET MANUFACT SALES FINANCE
DISTRIBUTI ING URING ON

40. Projectsformba.blogspot.comCadbury SchweppesCadbury Schweppes plc, a global
beverage and confectionary giantwith annual sale of Rs 20,000 crores,is the worlds number one
non –cola soft drink company having bottling and partnership operations in14 countries and
franchises of its brand in a further 86 countriesaround the world. Its Hundred Percent subsidiary
in India namedCadbury Schweppes Beverage India (private) Limited (CSBIL) startedoperation in
March 1995. The first brand was launched was crushwhich was later followed by Canada Dry,
Schweppes Tonic Water,Schweppes Bitter Lemon.CSBIL with its franchise agreement with 19
bottles throughout Indiaproposes to be a household name. It has a policy for FOBOs(Franchise
owned bottling operations unlike Coke and Pepsi whichprefer COBO,s (Company owned
bottling operations). In FOBO thebeverages company only supplies the concentrate and the
marketingsupport 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 thehardware”.

41. Projectsformba.blogspot.comCadbury’s Market SegmentMarket place for any product is

comprised of many different segmentsof consumers, each with different needs and wants.
Marketssegmentation 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. 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.

42. Projectsformba.blogspot.comThe Real Taste of RejuvenationIt was the market – leader, but
sales inched along. It focused firmlyon its target segment, but the real buyer lay beyond. For
seven longyears, Cadbury’s Dairy Milk chocolate suffered stagnancy even asother consumer
products boomed. Just how did the companyrejuvenate an old brand to create the marketing
megs-hit of the 199s?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 12months, starting February, 1994, the
Rs. 314 crore confectionerymakers Cadbury embarked on the most outrageous
repositioningexercise in the recent history of Indian marketing. For, itsystematically dismantled
the franchise that the company had builtover 30 years of its flagship brand, Cadbury’s Dairy
Milk (CDM)-Cadbury’s Milk chocolate until 1986-destroying the very fundamental

43. Projectsformba.blogspot.comof generic association that had made million of Indians refer to
a barof 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% perannum.

44. Projectsformba.blogspot.com The DiagnosisToday, The Real Taste of Life campaign, which
servedUp chocolate in general, and COM in particular, into theconsciousness of adult, has
already become a classic of advertisingand marketing. By 1993, Cadbury was desperately
seeking growth forthe brand… “With a market share of 70%, trying to win awaycustomers from
competitors in this stagnant market wouldn’t help.They had to find new customers, people
who’d never bought chocolatebefore. Or, they had to increase consumption levels”. The
obvioussolution, in a peculiar predicament. Despite low penetration, both thebrand and the
category were displaying symptoms of age: falteringgrowth, high recognition, and lack of
excitement. The market researchrevealed the cause of the graying: chocolate wasn’t a snack
in India.“In mature markets, chocolate straddle a continuum, from boutiqueproduct – packaged


raw indulgence – to a casual food”. So, Cadburywhipped up a growth solution that involved
associating the brandwith snacking and functionally, which inevitably go together with
highconsumption rates in the Western markets.The next step: identify the barriers preventing
consumers fromchocolate as a snack. A battery of test, both quantitative andqualitative,
comparing chocolate consumption to a basket ofcompetitive products revealed an
unmistakable answer.

45. Projectsformba.blogspot.comThe TestsDespite the Need To Clear The residual memory of
CDM’s formerassociation, caution prevented a big break with the past, forcingCadbury 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
wentthe 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
impulseitem, so why shouldn’t it be sold as one?”. The first of the twocommercial focused on
functionality, purging the emotional element.Is the storyline, The father watches TV,
engrossed, gnawing away at abar of CDM. The children enter, followed by the mother-but, by
thattime, the father has completed the distinctly un paternal act ofdevouring the entire bar. The
children are shocked, where upon theproduces another bar for them-only to eat that up too.
Finally, themother brings another bar out of her bag. The last shot more CDMbars strew around
casually.The second commercial conveyed the same message, depicting fourmember of a
family doing their own thing on a Sunday afternoon,each casually munching away on
chocolates. The less than – subtle

46. Projectsformba.blogspot.commessage: eating chocolate’s just an everyday affair, without
specialoccasion or relationship coming into play. Despite their strategicintent, both ads failed
on pre – airing tests.Why for stators, children were outraged at the idea of a parentconsuming
chocolate, while adults were down right angry at thenotion of the father depriving his children of
chocolate bar. Just asimportant, consumer rejected the idea that chocolate-eating could
beequated with mechanical activities like combing one’s hair. After all,chocolates were about
feelings. There had to be magic, romance, loveand emotion. These elements had been ripped
away from theadvertising. 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 transactionalanalysis on response, Cadbury’s found that adult as parents
behavevery differently from adults as adults. People forbid their childrenfrom having chips, but
gorge themselves. “The implication”:-“The moment the adult was shown in the context of his
role as aparent, all his cognitive preconception about the product would cometo the fore. He’d
think about the reasons why, and the block wouldautomatically come up”. Tap child-ego state


within the adult,stimulating desire, spontaneity, and the craving for instantgratification.

47. Projectsformba.blogspot.comThe PrescriptionThe crucial question that Cadbury was
confronted with: what strategyshould it deploy to rejuvenate COM in a way that would appeal to
thechild lurking within the adult? To inject a modern flavor into COM,they chose to create a
new brand identity, borrowing a leaf frommarketing guru David Aaker, who decrees that brand
identity shouldestablish a relationship between the brand and the customer bygenerating 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, notwhat it should be
Cadbury’s job to mould has habits and behavior ina 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 BrandPrism model to examine whether contemporary value systems offereda
peg on which the brand could be judge. The study disclosed,interlaid, a distinct shift from
collectivism to individualism, with thepre – 1990’s sacrosanct values of filial and family love
beingovershadowed by the manifestation of a larger need for self –expression. “There was a
definite yearning to be free child”. Therein

48. Projectsformba.blogspot.comlay the opportunity for both unshackling consumption and
creatingall-new association for CDM.The ElixirHaving decided to barter the distinctly use selfish
values of sharingand caring for the suspiciously self-centered one of self-expression,Cadbury’s
people insisted that the rejuvenate be enriched withcompensation – and equally enduring –
positive values: universaltruths, enduring human values, and universal moment of joy.
Totranslate the brief into the commercial, they decide to simply portrayoccasion of childlike-but
not childish-behavior from adults, withoutexplicitly identifying adults as the target
customer.“They left the connection to be made by the customer” “In the processthey 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 ofthe
child in the man-the old man kicking the football; the pregnantwoman carving a chocolate;
young girl breaking into a spirit; theyoung man tossing a bar of chocolate at his sweet-heart
departing ina bus-was created.That the consumption had to be liked before it could penetrate
thecultural resistance to chocolate consumption by adults was obvious.Taking a contrition
stance, Cadbury decided to test the commercial

49. Projectsformba.blogspot.combeing devised by O&M’s creative team not for the tire battery
oflikeability, comprehension, credibility and behavior modification – butonly for the first two. “If
asked upfront, the consumer was hardlylikely to consider the dramatically-different idea
credible. Nor wasthere much chance of her announcing an immediate change inbehavior”. But
why likeability and comprehension? Simple: the firstwas meant to be the vehicle on which the

why likeability and comprehension? Simple: the firstwas meant to be the vehicle on which the
daring idea-that adultsshould 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, which is wherethe comprehension had to be tested. “What was clear in
this case wasthat likeability would have to include identification and feelingwarmth.”

50. Projectsformba.blogspot.com The Real Taste of Life CampaignThe very first ad in the
campaign in 94 was ‘block – Buster’. Itdepicted the essence of one and a half glass of milk
pouring in to aboy Dairy Milk unique glass and half in to a chunk icon shows theglass and a
half of full cream milk flowing in to the chunk of dairymilk conveying the deliciousness and
taste appeal of the gooey,creamy, smooth chocolate inside the pack that children like.
Themnemonic of 1 ½ glass reached to consumer through everymagazines, poster, T.V,
newspaper.The second ad was montage of vignettes from every day lives of youngand old
which focused on showing a series of emotions. The adcreated a being out the child in the man
created to bring out the childin the. The old man kicking the football, the pregnant women
cravingchocolate, young girls breaking into a spirit, the young man tossing abar chocolate at
his sweet heart departing into a bus. The commonrefrain 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 adreceived an overwhelming response. It was high on likeability, evokeda
great degree of empathy and identification consumers’ responsewere those me…… “Feel like
that…….”. “Every feels like this”……..accessions. Consumers described dairy milk as “… of all
ages”

51. Projectsformba.blogspot.com“Eat, when ever you feel like it…you do not have to wait for
anoccasion.”Dairy Milk had successfully enabled the free child in the consumersubsequent
adverting used the same communication strategy.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
wherethe comprehension had to be tested. “What was clear in this case wasthat likeability
would have to include identification and feelingwarmth.”The New CampaignAnd finally, with the
launch of the new colloquial advertisingcampaign ‘Khaannein Wallon Khaannein Ka Bahana
Chahiyafeaturing MTV VJ Cyrus Broacha, Cadbury India aimed to‘substantially’ increase
penetration level of the chocolate category inthe next few years.’The New campaign is worth
noting as it clearly differ from the earlierone in terms of rectifying the consumer perception
about chocolatebeing an up market impulse – driven product. The attempt now is tochange the
image, to make chocolate eating a regular habit.The current estimated penetration level of the
chocolate category is19% in the urban market. The objective behind tne new

52. Projectsformba.blogspot.comcommunication on Cadbury Dairy Milk is to make the


chocolatecategory more socially and culturally relevant and drive penetration inthe process.The
new campaign has been launched in tandem with the old ar@@Winning ‘Kuch Khass Hai’
campaign and the media strategy is to letthe two co – exist towards a common vision
“providing a Cadbury inevery pocket”.

53. Projectsformba.blogspot.com Thodi Se Pet Puja, Khabi Bhi, Kahin Bhi!

54. Projectsformba.blogspot.comChocolate Market ShareThe Indian chocolate market is
getting bigger and better. While on onehand, the premium segment (composing imported
varieties) is openingup on the other, companies like Cadbury India are launchingindigenous
product made to international standards. Of the 20,000tones chocolate market worth aboutRs.
400 crore, Cadbury account for about 70% followed by Nestle,with a share of around 20%.
Amul has about 5% of the market, withminor player taking the rest. The battle, though, is
between Cadburyand Nestle. Though with a much smaller portfolio, Nestle is puttingup a tough
fight.From a treat for kids, chocolate are now being positioned near mealsubstitutes, thanks to
the initiative taken by the Cadbury Indiaduring early nineties. The market itself has become
more broadbased, in the sense adults are an important target segment now. Thereposting of
Cadbury’s Dairy Milk in 1994 as the ‘real taste of life(through the Slice of Life and Cricket
commercial by Ogilvy and

55. Projectsformba.blogspot.comMather) grew the entire milk chocolate by 20%, and gave
theCadbury’s range – 5 Star, Gems, Éclairs, Fruit & Nut, Crackle,Nutties, Butterscotch &
Tiffns – a new lease of life. In other words, itfacilitated 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 linkedgifts. Chocolates contribute to
64% of Cadbury’s turnover.Confectionary sales accounting for 12% of turnover is
contributedlargely by Éclairs. The company attempted expanding itsconfectionary product
portfolio, with launch of sugar basedconfectionary goodly and fruits, without much success.
Cadbury alsohas a strong brand vita in the malted health drink category whichaccount for 24%
of turnover.There exists an even larger unorganized market in the confectionarysegment.
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
Perfettihave aggressively expanded their presence in the country in the lastfew 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

56. Projectsformba.blogspot.commarket south and east are large market for drinks, accounting
forlargest proportion of all India’s sale. Cadbury’s Bourn Vita is leader inthe down drink coca

based segment in the white drink segment SmithKline’s Horlicks in the Nestle Milo , GCMMF
nitramul and other SmithKline brand Boost, Maltova and Viva Cadbury bold 14% market
sharein food drinks segment.Despite tough market condition and increased competition
Cadburymanaged to record a double digit (11%) top line growth in 2000. Thecompany achieved
a volume growth of 5.2%. This was achievedthrough innovative marketing strategies and
focused advertisingcampaign foe flagship brand Dairy Milk. Net profit rose sharply by41.8% to
Rs. 520 million. Reduced material and energy cost and tiotercontrol over working capital over
working capital and capitalexpenditure enabled the company to improve the
profitability.Company added 8 million new consumers and saw its outlets grow to4.5 lakhs and
consumer to 60 million.In the food segment, Britanniais the leader brand with 21% among
those who expressed an opinionsaying that they like advertising for the brand Cadbury was
clearlyNo.2 with 18% to which CDM throw in its weight with 13% and porkwith 4%. For the
Chowlate company, Khane Walo Lo, Khane KaBhanna and the Karwa Cauth, Sports are clear
winners.

57. Projectsformba.blogspot.comTied for the brand place are Amul, Parle and south based
Arun LeGram with 5% each. Disappointment among bid brands Kissan andMaggi and Kwality
Walls (1%) each.

58. Projectsformba.blogspot.comChanging Product Mix Contributing to Contributing to turnover
1998 turnover 2003Chocolate 59% 64%Sugar Confecting 9% 12%Food Drink 32% 24%Current
Market ShareChocolate 69.2%Sugar Confectionary 4.0%Food Drink 14.2%Expanding
Distribution Reach2001 + Distribution450000 Retail Outlet60 Million Consumers


60. Projectsformba.blogspot.com SWOT ANALYSISStrength 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.Opportunities 1. Tremendous scope for per capita consumption (160 gms of 8 –
10 kg)


61. Projectsformba.blogspot.com 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.Threatsa] 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…).PEST ANALYSISWill lose market share with globalization (a la
Maruti) but will remainbrand leader.

62. Projectsformba.blogspot.comP: since the budget range is decontrolled, no political effects
areenvisaged.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
penetrationS: 1) Per capita consumption expected to increase – fashion 2) Increasing gifts
culture – increase in demand 3) Lower cholesterol than “mithais” (sweet meat) – substitute
demand

63. Projectsformba.blogspot.comT: Will have to reinforce technology to international levels
once India is a “free” economy5 P’S OF MARKETINGPRODUCT Satisfaction suffices. But
delight dazzles the average companywill compete for customer by conforming to her
expectationconsistently. But the winner will surpass them by constantlyexceeding her
expectation, delivering to her door step additionalbenefits which she would never have imagined
possible. Cadbury’soffer such product. The wide variety products offered by the
companyinclude: I. Chocolate & Confectionary 1) Dairy Milk 2) Fruit & Nut 3) 5 Star

64. Projectsformba.blogspot.com 4) Break 5) Perk 6) Gems 7) Eclairs 8) Nutties 9) Temptation
10) Milk Treat II. Beverages III. Food Drinks 1) Bournvita 2) Drinking chocolate 3) Cocoa

65. Projectsformba.blogspot.comPRICINGMake no mistake. Second P of marketing is not
another name forblindly lowering prices and relying on this strategy alone to increasesales
dramatically. The strategy used by Cadbury’s is for matchingthe value that customer pays to
buy the product with the expectationthey have about what the production is worth to
them.Cadbury’s has launched various products which cater to all customersegments. So every
customer segment has different price expectationfrom the product. Therefore maximizing the
returns involvesidentifying right price level for each segment, and then progressivelymoving
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

66. Projectsformba.blogspot.comPHYSICAL DISTRIBUTION:- “PLACE” BRAND ISN’T THE

ONLY ANY MORE. Marketers and financemanager need a new term to evaluate their
business:Distribution Equity. It takes much more time and effort to build, butonce 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 thehottest
strategies on the block, swamp prime television with best Ads,but the end of it all, you would
be know of selling your products. Thecardinal task before the Indian market is managing is to
shoe-horn itsproduct on retail shelves. Buyers are paying for distribution equitynot brand equity
and market shares.Why does the company need distribution equity more anything inIndia?
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 theone that reaches the highest number of customers.

67. Projectsformba.blogspot.comIndia – 1 billion people, 155 million household has over 4
millionretail outlets in 5351 urban markets and 552725 villages, spreadcross 3.28 million sq.
km. television has already primed andpopulation for consumption, and the marketer who can
get to the tothe consumer ahead of competition will give a hard – to – overtakelead. But getting
their means managing wildly different terrains-climate, language, value system, life style,
transport andcommunication network. And your brand equity isn’t going to helpwhen it comes
to tackling these issues.Own distribution network consist of clearing and forwarding
(C&F)agents & distribution stockiest. This network of distribution caneither contact wholesalers
and which in turn retailers or thedistributors can contact to the retailers directly.Once the stock
product reaches retailers, the prospective customerscan have access to the product.Cadbury’s
distributes the product in the manner stated above.Cadbury’s distribution network has
expanded from 1990 distributorslast year to 2100 distributors and 4,50,000 retailers. Beside
use of TItom improves logistics, Cadbury is also attempting to improve thedistribution quality.
To address the issue of product stability, it hasinstalled visi colors at several outlets. This
helps in maintaining

68. Projectsformba.blogspot.comconsumption in summer when sales usually drops due to the
fact thatthe heal effects product quality and thereby off takes.Looking at the low penetration of
the chocolate, a distributionexpansion would itself being incremental volume. The other reason
isarch rival Nestle reaches more than a million retailers.This increase in distribution is going to
be accompanied by reductionin channel costs. Cadbury’s marketing costs, at 18% of total
costs, ismuch higher than Nestlé’s 12% or even pure sugar confectionerymajor Parry’s 11%.
The company is looking to reduce this parity level.At Cadbury, they believe that selling
confectionery is it like selling softdrinks.PROMOTIONIf an advertisement is to communicate
effectively, the receiver must atleast half want it to, and be prepared too take step toward the


sender.Effective advertising is rarely hectoring or loudly explicit…. It oftenboth attracts and
generates arm feelings. More often than not, asuccessful campaign has a stronger element of
the unexpected aquality that good advertising shares with much worthwhile literature.

69. Projectsformba.blogspot.comTo penetrate into the inner recesses of her memory,
communicationmust first ensure exposure, grab her attention evoke hercomprehension, grab
her acceptance and then extract retentioncompeting with thousands of other units of
communication trying todo the same.Finding showed that the adults felt too conscious to be
seenconsuming a product actually meant for children. The strategicresponse address the
emotional appeal of the band to the childwithin the adult. Naturally, that produced just the value
vacuum thatCadbury was looking to fill. Thereafter it was the job of the advertisingto
communicate customer the wonderful feeling that he couldexperience by re-discoursing the
careful, unself conscious, pleasure –seeking child within himself – a graft these feeling onto the
Adcampaign like “Khane Walon Ko Khane Ka Bahana Chahiye” forCMD and “Thodi Si Pet
Pooja – Kabhi Bhi Kahin Bhi” for Perk havebeen sure shot winner with the audience.Whirl with
the new launched temptations with the slogan “Too ToShare” the communication resolves
around the reluctance of a personwho’s got their hand on a bar of temptation to let anyone else
to havea bite. As well as outdoor and radio ads, ad agency contract has

70. Projectsformba.blogspot.comcreated communication for cinemas and even ATM machines
for thebrand.All ICICI’ s ATM a message flashes on the screen as soon as customerinsert his
ATM card. It tells the customer that this would be good timeto 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 dimmedto give them a
chance to get their temptations. There will also be afterdinner sampling in restaurants – to
begin with, 30 catteries inMumbai have been selected.The next round of activity will include the
wafer-chocolate Perk andthe Picnic bar, which has faced problems with its taste, because of
thepeanut it contains. Milk treat has also been launched in a module barform, just in time of
Diwali gifting market. Éclairs has got potential formuch wide distribution, in a small sweets
thatairlines, hostels, and up market retail outlet offer to guest andcustomers.Ad spend in 2000
was about 14% of sales and the management saidthat plans to maintain as spend at this level
in the current year also.

71. Projectsformba.blogspot.comAd since any discussion today would be incomplete without
mention‘e’ word, the management plans to tap this new channel ofmarketing. Beside three
company website (i.e. www.cadburyindia.com, wwww.bourvita.com, www.cadburygift.com that
the companyhas launched, it had also entered into various marketing relationshipwith other
portals, specially targeted during festivals and events suchas Valentines day, etc….It’s a

portals, specially targeted during festivals and events suchas Valentines day, etc….It’s a
combination of spiffing up its key brand, researching andimproving the newer products that
haven’t taken off, supported withhigh ad – spends that Cadbury hopes will see it emerges
strongerafter the current slowdown, as well as expand the market.POSITIONINGIn the 1970s
consumers were ready to pay “more for more”, andluxury goods flourished. In the 1980s,
consumers began to demand“more for same”, and the discounting era grew strong.
Today’sconsumer demanding “more for less”, and the winner will be thatsuper value
marketers…. Some of today’s most successful companiesrecognize those customers are
more educated and able to recognizetrue customer value…

72. Projectsformba.blogspot.comPositioning is simply concentrating on an idea – or – even a
worddefines that company in the mind of the consumer. It is more efficientto market one
successful concept to one large group of people than 50product or service ideas to 50 separate
group… repositioning is amust when customer attitude have changed and product have
strayedaway from the consumer’s long standing perception of the…Cadbury’s is an anchor in
sea of confectionaryproducts. As a variety of competitive claims assails her senses,
todaycustomer uses complicated decision making process to assess thealternative before
making a purchase. Since Cadbury’s is more clearlyassociated with a particular set of
attributes in terms of benefits andprices, 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

73. Projectsformba.blogspot.com 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 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: 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 than 5 star, Perk was
meant to be light snack-product for subduing the first pangs of hunger.

74. Projectsformba.blogspot.comBournvita: positioned as tasty health drink. While its
competitorsconcentrated only on health aspect, Bournvita combined thenutritious value with
taste. IV. 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 V. Beverages VI. Food Drinks 1)
Bournvita

75. Projectsformba.blogspot.com 2) Drinking chocolate 3) Cocoa

76. Projectsformba.blogspot.com The outlookThe Cadbury management has cut down on its
growth target bysetting a 10% average volume target for next 3 years (as againstprevious
growth) coupled with in factionary price increases, this couldtranslate into top line growth of 14
–15%. This target also appearsdifficult to achieve given the consumer slowdown and the fact
that thecompany’s consumer slow down and the fact that company isdependent on a single
category chocolates to drive growth. Effect itexpanding confection any portfolio have also not
yielded desiredresults. The management has declared its intention to focus only inÉclairs
(which forms a major position of its 4% share in theconfectionary segment) for the time being
in this category.In chocolates too ones remain on the 2-3 key brands as CDM, perk inE claims
which have supported growth in the past. While newlaunched such as milk @ and Perk slims
have been doing will, themanagement expects that dairy milk would continue to be the
centraldriving force in Cadbury’s growth and that all other brands wouldremain peripheral to this
central brand.

77. Projectsformba.blogspot.comPOSITION OF THE VARIOUS BRANDS IN THE

78. Projectsformba.blogspot.com MARKET HAS BEEN LISTED BELOW Cadburys Positioning
Nestle’s Positioning brands brandsCadbury “The Real Classic Milk Positioned asDairy Milk
Taste of Life” Chocolate an affordable enriched milk chocolateFruit n Nut Position as Bar One
Positioned as adults as an Trendy, Cool,Creamy bar any time impulse anyRoast time
snack.Almond purchase –Crackle self expressionBournvita values attached5 Star / Perk –
KitKat Positioned asPerk/Break Positioned as a snacking Snacking consumption consumption
“Have a “Thodi si Pet Break, Have Pooja” a Kit Kat” 5 Star Energy bar Reach for the Stars.

79. Projectsformba.blogspot.com DATA ANALYSIS AND FINDINGSData was tabulated
manually and was also analyzed manually. Excelwas used to make graphs had pie
charts.Main technique used were:Modal value was used to analyze the questions, which has 2

or morechoices as their answers. Simple average were used to get answer toquestions • 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.

80. Projectsformba.blogspot.com FINDINGS AND SURVEY1. Do you eat chocolates? Yes
26% No 74%2.Which brand of chocolates do you use? 80 75 65 70 60 60 50 40 30 30 20 10 0
Cadburys Nestle Amul Others

81. Projectsformba.blogspot.com3.Where do you buy chocolates from? Others 6% Movie Halls
Super stores 17% 32% Restaurants 10% Retail stores 35%4.Are you aware of any campaign
of the above brands? Yes 46% No 54%

82. Projectsformba.blogspot.com5. Which cadbury’s product do you usually prefer or use? 80
70 80 60 40 24 35 40 20 0 Dairy Milk 5 Star Fruit & Nut Perk Temptation6. Do you think
Cadbury’s chocolate is easily available in market ? No 9% Yes 91%


84. Projectsformba.blogspot.com CONCLUSIONThis company project has demonstrated
“CADBURY CHOCOLATEMARKETING STRATEGY WITH ITS MAIN COMPETITORS” that
hasproved to be extensive through, and of great benefit to the company infurthering its
competitive advantage. It also helps the company forbuilding its future planning and targeting
the customers for moresatisfaction through its innovative product.In this project it possible to
see the success of Cadbury’s in itsindorse its strong potential to continue to do well and also
gives theways to maintain its market potential.


86. Projectsformba.blogspot.com 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.Few Concerns Come To MindWith a market share of 70% in the chocolate category and
with thefree availability of international brands that you see in the market


87. Projectsformba.blogspot.comtoday, it is only natural that Cadbury’s market share will move
downfrom here marinating a 70% market share in a closed environmentmay have been easy,
but it certainly won’t be easy in liberalizedenvironment of free imports. And whatever be the
anomalies oftaxation 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 isadditional challenge of Cadbury’s
brand just aiming market sharewhen the consumer has a wide portfolio of brand to choose
from.While there would be new chocolates launch towards the end of theyear, the company
has ruled out a real big chocolates launch in thecurrent year. And it is too early yet to
comment on the long termresponse to the new launch temptations. They say chocolates
aremostly am impulse purchase. Therefore consumer would prefersmaller, low cost packs to
bigger higher priced ones.The growth trend of the brands therefore clearly indicates that theonly
brand that has grown is the one that gas received tremendousmarketing and advertising
support Dairy Milk withdraw support forany brand and growth loses momentum. In such
scenario, for howlong and how many brands can the company continuously support?

88. Projectsformba.blogspot.com FUTURE STRATEGYIn the branded impulse market, the
share of chocolate in 6.6% andCadbury’s share in the impulse segment is 4.8% factor like
changingattitude, higher disposable income, a large youth population, and lowpenetration of
chocolate (22% of urban population) point towards abig opportunity of increasing the share of
chocolate in the brandedimpulse among the costly alternative in the branded impulse market.It
appears that company is likely to play the value game to expand themarket encouraged by the
recent success of its low priced ‘value formany packs’.Various measures are undertaken in all
areas of operation to createvalue for the future.New channel of marketing such as gifting and
child connectivity andlow end value for money product for expanding the consumer basehave
been identified.In terms of manufacturing management focus is on optimizingmanufacturing
efficiencies and creating a world class manufacturinglocation for CDM and Éclairs. The
company is today the second bestmanufacturing location of Cadbury’s Schweppes in the
world.Efficient sourcing of key raw material i.e. coca through forwardpurchase of imports,
higher local consumption by entering long term

89. Projectsformba.blogspot.comcontract with farmer and undertaking efforts in expanding local
cocaarea developing. The initiatives in the terms of development a longterm domestic coca a
sourcing base would field maximum gains whencommodity 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. • The above are some
steps being taken internally to improve future operation and profitability. At the same time the

90. Projectsformba.blogspot.com 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.


92. Projectsformba.blogspot.com 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

93. Projectsformba.blogspot.com QUESTIONNAIRE1. Do you eat chocolates? Yes No2.
Which brand of chocolates do you use? Cadbury’s Nestle Amul Others3. Where do
you buy chocolates from? Super stores Retail Stores Restaurants Movie Halls
Others4. Are you aware of any campaign of the above brands? Yes No5. Which cadbury’s
product do you usually prefer or use? Dairy Milk 5 Star Fruit & Nut Perk
Temptation6. Do you think Cadbury’s chocolate is easily available in market ? Yes No7.
Describe Cadbury’s Chocolate in one word?
______________________________________________________8. Your comments on
Cadbury’s products? ______________________________________________________



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