INDUSTRY OVERVIEW

A SUMMER TRAINNING PROJECT REPORT

ON

An ANALYSIS OF BRAND POSITIONING of Cadbury India Ltd."

A report submitted in the partial fulfillment of the award of Post Graduate Diploma in Management

Under the Guidance of :-

Under the Supervision of:

Mr. Prashant Dev Yadav

Mr. Pradeep Singh (Class Co-ordinator)

Manager (Sales & Marketing)

GNIT College of Management

Cadbury India Ltd.Submitted by

Gaurav SinghPGDM (2011-13)

ID - 111020GNIT College of Management

(Approved by AICTE, Ministry of HRD, Govt. of India)

7, Knowledge Park-II, Greater Noida (U.P)

2011-13

CERTIFICATE

This is to certify that the project report entitled "An Analysis of Brand Positioning of Cadbury India Ltd." being submitted by Mr. Gaurav Singh, student of PGDM (Batch: 2011-13), for fulfillment of the requirement of PGDM, is a record of an independent work done by his under my guidance and supervision.

Mr. Prashant Dev YadavFaculty Guide

GNIT College of Management, Gr. Noida DECLARATIONI, Gaurav Singh, to declare that the project report entitled "An Analysis of Brand Positioning of Cadbury India Ltd." being submitted to GNIT College of Management, Greater Noida (Approved by AICTE, Ministry of HRD, Govt. of India) for the partial fulfillment of the requirement for the award of PGDM (Batch: 2011-13) is my own endeavors and it has not been submitted earlier to any institution/university for any degree.

Gaurav SinghPGDM (2011-13)

ID - 111020Place:

Date:

Acknowledgement

I am thankful to Mr. Prashant Dev Yadav, Faculty Guide, GNIT College of management, Greater Noida for his valuable guidance and support at all time.

I am grateful to Mr. Pradeep Singh, Manager (Sales & Marketing) for his valuable guidance and support and provided me the best opportunity to completed my summer training project with an esteemed organization.

I am thankful to all those people who provided me the best information directly or indirectly throughout my project report completed at time.

Gaurav SinghPGDM (2011-13)

ID - 111020TABLE OF CONTENTS

TOPIC

PAGE NO.CHAPTER - 1 iNTRODUCTION

6-321.1. Overview of Industry as a whole

1.2. Profile of the Organization

1.3. Problems of the Organization

1.4. Competition Information

1.5. S.W.O.T Analysis of the Organization

CHAPTER - 2 OBJECTIVE & methodology33-41 2.1. Significance

2.2. Managerial usefulness of the study

2.3. Objectives

2.4. Scope of the study

2.5. Methodology

CHAPTER - 3 CONCEPTUAL DISCUSSION

42-62CHAPTER - 4 DATA analysiS

63-80CHAPTER 5FINDINGS & RECOMMENDATIONS81-87

Conclusion

88ANNEXURES

88-93BIBLIOGRAPHY

94CHAPTER 1.INTRODUCTION

1.1. OVERVIEW OF INDUSTRY AS A WHOLE The origins of chocolate can be traced back to the ancient Maya and Aztec civilizations in Central America, who first enjoyed 'chocolate', a much prized spicy drink made from roasted cocoa beans. Throughout its history, whether as cocoa or drinking chocolate beverage or confectionery treat, chocolate has been a much sought after the food. Because cocoa beans were valuable, they were given as gifts on occasions such as a child coming of age and at religious ceremonies. Merchants often traded cocoa beans for other commodities such as cloth, jade or ceremonial feathers.

THE AZTEC EMPIRE"Chocolate" (in the form of a luxury drink) was consumed in large quantities by the Aztecs: the drink was described as 'finely ground, soft, foamy, reddish, bitter with chilly water, aromatic flowers, vanilla and wild bee honey. The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain supplies of cocoa beans from 'tribute' or trade.DON CORTES

The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made Captain General and Governor of Mexico. When he returned to Spain in 1528 he loaded his galleons with cocoa beans and equipment for making the chocolate drink. Soon chocolate become a fashionable drink enjoyed by the rich of Spain.CHOCOLATE ACROSS EUROPE

An Italian traveler, Francesco Carlotta, was the first to break the Spanish monopoly. He had visited Central America and seen how Indians prepare cocoa beans and how they made the drink, and by 1606 chocolate was well established in Italy.DRINKING CHOCOLATE

The secret of chocolate was taken to France in 1615, when Anne, daughter of Philip II of Spain married King Louis XIII of France.

The French court enthusiastically adopted this new exotic drink, which was considered to have medicinal benefits as well as a nourishing food. Gradually the custom of drinking chocolate spread across Europe, reaching England in the 1650's.

FIRST CHOCOLATE FOR EATING

Up until this point all chocolates recopies were based on Plain chocolate. It was an English doctor, Sir Hans Sloan, who after traveling in South America focused on cocoa and food Values, bringing a milk chocolate recipe back to England. The original Cadbury Dairy Milk chocolate was prepared by him.

PRODUCT & SEGMENTATION

Chocolate market can be segmented as follows:- Large units bars/ slabs,

Count lines,

Panned varieties,

Small value added units.

Confectionery products can be categorized as

Hard boiled sugar candies, lollipops, jellies.Toffees.Chewing candies.Breath fresheners, digestives, throat relievers

Gum based products are:

Chewing gum

Bubble gumTable No. 1.1: Chocolates & Confectionery Industry

ChocolatesBars/ SlabsCount linesPanned (Gems)clairsAssortedSugar confectioneryHard boiledToffeesSoft chewJelly candiesDeposit candiesLollipopsMints, etc.Gum basedChewing gumSugar coated chewing gumBubble gum

Table No. 1.2: CHOCOLATE SEGMENTATIONChocolate market can be segmented into mounded chocolates, count chocolates, panned chocolates, clairs and assorted chocolates. Type of chocolates% Share in chocolate market

Moulded37%

Count30%

clairs20%

Panned10%

Others3%

(Source: http://www.cadburyindia.com/)

Moulded chocolates: - Like Dairy Milk, Truffle, Amul Milk Chocolate, Nestle Premium, Nestle Milky Bar, is the largest segment accounting for more than 1/3rd of the market. Count lines: - (5 Star, Perk, Kit Kat, Picnic) are the second largest segment accounting for 30% of the volumes. The Count Line segment has been growing at a faster pace during the last three years driven by growth in Perk and Kit Kat volumes.

Panned products: - Include Cadburys' Gems, Nut ties, and Nestls Marbles. In panned segment, Cadbury dominates with over 95% market share.

clairs: - (droplets of hard caramels with soft chocolate fillings) are a low unit priced product. Cadbury clairs was launched in 1972. Parle Products launched Melody in 1991. Nestle is a recent entrant in the segment.

Company Profile1.2 CADBURY INDIA LTDIndian Chocolate MarketCadbury dominates the chocolate market with about 71% market share. Nestle has emerged as a significant competitor with about 23% market share. Key competition in the chocolate segment is from co-operative owned Amul and Camp co, besides a host of unorganized sector players. There exists a large unorganized market in the confectionery segment too. Leading national players are Parry's, Ravalgaon, Candico and Nutrine. MNC's like Cadbury, Nestle, Perfetti, are recent entrants in the sugar confectionery market. Other competing brands such as GCMMF's Badam bar and Nestls Bar One have minor market shares.

Chocolate consumption in India is extremely low. Per capita consumption is around 160gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas, it is even lower. Indian chocolate market grew at the rate of 10% pa in 70's and 80's, driven mainly by the children segment. In the late 80's, when the market started stagnating, Cadbury repositioned its Dairy Milk to any time product rather than an occasional luxury. Its advertisement focused on adults rather than children. Cadbury's Five Star, the first count chocolate, was launched in 1968. Due to its resistance to temperature, the chocolate has become one of the most widely distributed chocolate in the country.

In the early 90's, high cocoa prices compelled manufacturers to raise product prices and reduce their advertisement budget affecting the volumes significantly. The launch of wafer chocolates Kit Kat and Perk spurred volume growth in the mid 90's. These chocolates positioned as snack food rather than on the indulgence platform compete with biscuits and wafers. A strong volume growth was witnessed in the early 90's when Cadbury repositioned chocolates from children to adult consumption. The mid 90's saw the entry of new players like Nestle, which createdcategories like wafer chocolate and spurred growth. Todays scenario in the chocolate industry is a highly competitive one. In the wake of liberalization as the economy opens up, more and more international brands of chocolate are entering into the Indian Market creating competition in the Indian market. Gone are the days when chocolates were considered to be a luxury item only to be consumed.

Some of the examples of this type of positioning are Perk and Kit Kat with chocolate companies having intense competition and with reducing shelf space only those companies who market their chocolates as well as advertise and package them will have a chance to survive in the market. The studies have shown that most of the time chocolate buying is an impulse action i.e. when one sees the chocolates on the shelf of the shop so, it is very important for the manufacturer to package them attractively. Now day's chocolates are positioned as a thing which can be eaten by each and everyone.

VISION OF CADBURYS INDIA To become a performance driven and values led organization. Throughout changing times, our constant values have inspired us to be pioneers in business and in corporate responsibility. They help ensure we are proud of our company and are critical to our core purpose of creating brands people love.

MISSION OF CADBURYS INDIAPerformance mission: We are passionate about winning. We compete in a tough but fair way. We are ambitious, hardworking and make the most of our abilities. We are prepared to take risks and act with speed.

Quality mission: We put quality and safety at the heart of all of our activities - our products, our people, our partnerships and our performance.

Responsibility mission: We take accountability for our social, economic and environmental impact. In this way we aim to make our business, our partners and our communities better for the future.

HIEARACHY OF CADBURY INDIA LTD.

(Chart No. 1.1)TABLE NO. 1.3: ORGANIZATION STRUCTUREChairman

C Y Pal

Chairman - Non Executive

1.MANAGING DIRECTORRajesh Garg

Executive Director Finance & Commerce

Anand Kripalu

Managing Director

2.NON-EXECUTIVE DIRECTORS

Harsh Mariwala

Radhakrishnan B. Menon

Suresh Talwar

3.EXECUTIVE DIRECTORS

Atul Bhatia Executive Director - Science & Technology

Jaiboy PhillipsExecutive Director - Supply ChainSanjay PurohitExecutive Director Marketing

Sunil SethiExecutive Director - Sales & Customer DevelopmentV ChandramouliExecutive Director - HR & Strategy

4.SENIOR MANAGEMENT

Ashish PisharodiRajesh Ramanathan

Vice President - Modern TradeVice President - People & Talent

Shivanand SanadiDr. Shantanu Samant

Vice President - Legal AffairsVice President - Science & Technology

Vivek SarbhaiDharmesh Joshi

Vice President - Logistics & Customer OperationsVice President - Manufacturing Development

Sherezad IraniSanjay Kurup

VP ProcurementVP - Manufacturing (Baddi)

Monaz Noble

Company Secretary

5.CORPORATE AFFAIRS

R. DSouza

FUTURE PLANS OF CADBURYS INDIA LIMITED Confectionery Industry

The confectionery industry in India is approximately divided into: Chocolates

Hard-boiled candies

clairs & toffees

Chewing gums

Lollipops

Bubble gum

Mints and lozenges

The total confectionery market is valued at Rupees 41 billion with a volume turnover of about 223500 tonnes per annum. The category is largely consumed in urban areas with a 73% skew to urban markets and a 27% to rural markets.Hard boiled candy accounts for 18%, clairs and Toffees accounts for 18%, Gums and Mints and lozenges are at par and account for 13%. Digestive Candies and Lollipops account for 2.0% share respectively.

Overall industry growth is estimated at 23% in the chocolates segment and sugar confectionery segment has declined by 19%.

Cadbury with Dairy Milk, Perk, Gems, 5 Star, Celebrations, Bytes, Dairy Milk clairs, clairs Crunch, Mr. Pops and Halls brands is a key player in the chocolate, clairs, lollipops, and mints segments.

Milk Beverages

The Milk Beverages industry is valued at Rupees 16.1 billion with an annual turnover of approx 63,000 tonnes. As per Nielsen estimates the industry is growing at 10.1%.

Cadbury is a key player in the segment with Cadbury Bourn vita and Cadbury Bourn vita 5 Star Magic

Cadbury India Ltd - At a glance

Cadbury: No.1 confectionery and third largest soft drinks company in the world. Presence across 200 countries. 55,000 employees worldwide.

Cadbury in India: Presence for over 50 years. Market leader in the chocolate confectionery market.

Factors for success: extensive distribution network, strong brands, customization to Indian market.

For Cadbury, India is: huge potential market, source of managerial talent.

Future plans, India: To explore larger portfolio or growth. To look for opportunities in SAARC regionThere were various reasons due to which there was such a large gap between the market leader and the rest such as: -

a. Cadburys main strength is fast reaction, every time the competitors launch a product they immediately launch a rival product with far lower prices like when Nestle launched Kit-Kat Cadburys soon followed with Perk with far lower prices. So as to retain its market share in which they have succeeded.

b. Strength is the distribution network. Cadbury has a far better distribution network than Nestle and Amul. Its chocolates can be found in every nook and corner of the country where as the competitors have not been able to do so. . Analysts say in the past couple of years in the face of increasing competition from Swiss chocolates major nestle India and the home-grown Amul, Cadbury has been pushing its products aggressively and targeting the adult audience especially to expand the market.

This has led to a major thrust in increasing the number of distributors and retailers across the country with the result that Cadbury chocolates are available at any pan and cigarette shop in every nook and cranny of India. From 400,000 outlets about four years ago the company now has over 650,000 retail outlets spread across the country.

c. Another interesting strength, which I found out during the market research, was the packaging strategy, we found out that all.

Cadbury keep on changing the packaging of its chocolates after every six months. Most of people decide to buy the chocolate only if they find the packaging attractive. But there are some weaknesses also attached with the chocolate industry like we all know that chocolate as such is a perishable commodity, so, if there is no proper maintenance the chocolate can easily perish due to which the company can run into severe losses.

d. Cadbury owes its success to strong brand equity and resultant consumer preference that it enjoys in India. The company has built strong brand equity through Consistent product quality, relevant, insightful and entertaining communication. Cadbury has developed new channels for marketing its brands such as Gifting and Snacking. The company places great emphasize in ensuring display dominance at the point of purchase.

e. Cadbury India has spent time in understanding the Indian consumers. Leveraging its 55 years of experience in India, the company has customized its products to the Indian market. It also offers products at affordable price points so as to increase its market penetration.

f. Timely expansion of marketIn the 90's Cadbury realized both the scope and the need to expand the market. Hitherto perceived only as a children's product, Cadbury 'universalized' the chocolate market. The multi-award winning advertising campaign - 'The Real Taste of Life' - was launched, capturing the childlike spontaneity in every adult.

g. Introducing new products

Cadbury 5 Star with its Energizing Bar campaign targeted the youth, offering them a mind and body charge. While pre-empting competition, Cadbury Perk - the light chocolate snack - pushed chocolates into the wider area of snacking by promising 'Thodi Si Pet Pooja Kabhi Bhi Kahin Bhi' (anytime, anywhere) and has introduced new flavours like Mint Hint, Mango Tango, Very Strawberry.

h. RepositioningCadburys has also been repositioning its products for children to adults and for celebrative occasions. A repositioning campaign was arranged for dairy milk that showed adults doing unconventional things (like a lady breaking into a jig in the middle of the overflowing cricket stadium) driving home the message that adults could enjoy chocolate as well.i. Information technology:

At Cadbury India they believe that effective communication and availability of information 'at the right time and the right place' is critical for an edge in business. In order to achieve this they realized the importance of and have in place, an effective IT infrastructure.

Through IT investment, they aim to incorporate best practices in the business processes.

Remain competitive in the fast changing environment.

Minimize working capital.

Arrive at uniform software and business practices globally within Cadbury Schweppes.

Provide Y2K compliant software for all group companies.

Achieve flexibility of systems to keep pace with changing environments.

j. New Technology

A Wide Area Network comprising of 31 VSATs across the country connect the branch offices, factories, depots and the corporate office. This is used for e-mail and accessing SAP/R3, which is the application package, used across the Cadbury Group. The implementation of SAP gives them up-to-date information in terms of stocks at factories and depots, sales across the country, and the financial impact of all the above transactions at any given moment of time.

k.Trade Marketing

Chocolate and Confectionery purchase being impulse led, demands eye catching, on-the-cash-counter visibility in as many of these outlets as possible. In order to best meet their dealer's display and vending needs, they have invested in an array of inputs to the trade.

The Sheet Metal DispenserThis ubiquitous, purple salesperson for Cadbury is found in almost any shop stocking their chocolates. While being on the cash counter, it's unique design offers visibility, ease of vending and protection from the elements. Available in various sizes, it can meet the needs of any outlet. This 'first' from Cadbury, has become so popular, today it is the standard dispenser design for all chocolate manufacturers.

Vending machinesFirst introduced in the country by Cadbury, these impressive coin operated machines can be seen dispensing chocolates in high traffic areas from the World Trade Centre at Mumbai to New Delhi railway station. Cadbury Schweppes is the No.1 confectionery and the third largest soft drinks company in the world. The origin of the group goes back to over two centuries. Some of the popular international brands of the company are Cadbury Dairy Milk, Dr Pepper, Flake, Trebor Basset, Snapple and Motts. The company also has Halls, Clorets, Trident, Dentyne and Bubbas bubble gum range in its portfolio with acquisition of Adams in December 2002.

Its origin can be traced back to 1783 when Jacob Schweppes perfected his process for manufacturing carbonated mineral water in Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoa and chocolate. Cadbury and Schweppes merged in 1969 to form Cadbury Schweppes pc. 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. In 1905,

Cadbury's top selling brand, Cadbury Dairy Milk, was launched. By 1913 Dairy Milk had become Cadbury's best selling line and in the mid twenties Cadbury's Dairy Milk gained its status as the brand leader. Since 1969, Cadbury Schweppes has focused on confectionery and non-alcoholic beverages. In 2008, 60 per cent of the Groups net sales came from confectionery and 40 per cent from beverages. The company employees around 60,000 people in over 200 countries around the world.

When Cadbury Dairy Milk chocolate was first introduced in the early 1900s it made an immediate impact quickly becoming the market leader. The success story has continued. It is still the top selling chocolate brand in the country and the Cadbury Mega Brand's broad family of products today has an international retail value approaching US$1billion. As an international brand Cadbury Dairy Milk carries the same distinctive image all over the world. Wherever you buy a bar of Cadbury Dairy Milk the pack design will be exactly the same, only the language will be different. The famous slogan "glass and a half of full cream milk in every half pound" with the picture of milk pouring into the chocolate bar, is one of the all-time greats of British advertising.

The Core purpose of Cadbury Schweppes is Working better together to create brands people love.

Backed by an array of popular brands and innovative advertisement campaigns, Cadbury India has carved a niche for itself in the domestic chocolates market. Cadbury India is a wholly owned subsidiary of Cadbury Schweppes which is operating for more than 55 years.

Graph No. 1.2: Cadburys advertising in the year 2008-09

(Sources: TV AdEx)

The graph shows that Cadbury's India Ltd. tops with 59% share of the advertising pie on television. Nestle India Limited grabs the 2nd position with 28% share, whereas, Parle Products gets the 3rd position with 5% of the advertising share. Other advertisers who could make up to the top 5 are amul and Ravi foods. The brands that are advertised the maximum by the Cadburys India Ltd.

Graph No. 1.3:

(Sources: TV AdEx) Graph No. 1.4:Here, the 6 Cadbury brands shown in the graph comprise 85% of the advertising pie, whereas, rest of the 9 brands advertised by Cadbury comprise 15% of the advertising. Cadbury Dairy Milk Chocolate is the most advertised brand (with 22%).1.3. PROBLEMS OF THE ORGANIZATION It is not a hidden fact the Cadbury has its own image or brand which shows the value of money for its product. The Cadbury have a great product line and depth. If we give a overall look on the all market position of Cadbury product almost all product have a great market share in other hand all product are market leader with their grater sales volume and high turnover. But in case of Cadbury snacks and beverages the position of Cadbury is not satisfactory. The company has separate distribution channel for chocolate, they are giving high priority to confectionery products. They are providing easy replacement, high penetration, and regular visit to retailers shop. Most importantly they are providing cool storage equipment to their retailers and them positioning their product through heavy advertisement campaign.

Recently the Cadbury Chocolate is re-lunched in market but the position remains same, which is very critical for the company. After re-lunched, the sale volume and customer awareness about the all chocolate products remain unsatisfactory, which create harsh situation for all organization. Company highly willing to excel in the chocolate field there are some problem, which is adversely influence the organization.

There are some problems, which is as follows: -

Competitors position in market

Vast distribution channel which deals almost all product

Replacement

Retailer satisfaction level

Awareness about the product

Packaging problems faced by Cadburys India

Cadbury India has announced that it is to change the packaging for its Dairy Milk chocolate bar following allegations that a batch had been infested with insects. The consumer scare is believed to have seriously impacted sales of the nation's leading chocolate bar.

The packaging for Cadbury's Dairy Milk bars will be completely changed; creating what the company says is an impenetrable wrapper.

Although the move is in direct response to the allegations of infestation, the company continues to deny that its production methods at the Indian facilities are of anything but the highest standards and that there is "absolutely" no way that such an infestation could occur. The company has pointed the finger of blame to distributors, saying that unhygienic storage methods were the likely source of the infestations.

Cadbury India has even posted a public notice on its website, refuting all allegations of the infestation during manufacture.

The statement states that "the manufacture of chocolates involves conching process that takes place at high temperatures (up to 55 C), making it impossible for any infestation to take place during the process. 1.4. COMPETITION INFORMATION Indian chocolate has three major market players Cadbury India Ltd, dominating the market by capturing 71% of the markets share, followed by Nestle having 23% of markets share, Amul having a niche market of 4% and remaining 2% was other markets. Cadbury India ltd faces tough competition from Nestle however when viewed in light of the historical growth rates in earnings, Cadbury India appears to possess a superior track record. Over the past few years to 2008, Cadbury India has definitely outpaced Nestle India, both in profit and sales growth. Since 1998 till 2008-09, Cadbury India has managed a compounded annual sales growth of around 18 per cent and an impressive profit growth of around 40 per cent. In contrast, Nestle India's sales have grown at a sedate 4 per cent while profits have grown at around 18 per cent. Nestle India's sedate growth is partly to the cyclically of its coffee business. If one goes entirely by the track record of the past few years, Cadbury would deserve a better share than Nestle. However, the question is one of whether Cadbury will be in a position to sustain its impressive growth rates of past few years.

TABLE NO. 1.4: MARKET SHARE OF CADBURYCADBURY71%

NESTLE23%

AMUL4%

OTHERS2%

(Source: http://www.cadburyindia.com)

Pie chart showing market share of Cadbury chocolate

Graph No. 1.5:

From the diagram it has been shown that Cadbury enjoys the highest share in the chocolate market i.e., 71%. while nestle is the second largest player with 23% share, Amul has 4% of market share and at the end comes other brands with a share of 2%.

For 50 years, Cadbury's has successfully played the role of market leader and market maker by building brands that have a large base of loyal consumers. The last few years especially, have seen the company invest heavily in the entire value chain to successfully combat competition and continually move the market to the next stage of evolution.

competitors information OF CADBURY 1. AMUL

Amul has a presence in the Indian chocolate market with a 4% market share.

2. NESTLE

Nestle at about 23% market share

Major highlights of Cadburys competitive analysis 1. Cadbury does not provide credit to retailers while Amul does

2. Cadbury does not follow aggressive promotion strategy while Nestle does

3. Cadbury does not have a simple replacement procedure, while companies like Nestle and Amul do have such replacement procedures

4. Cadbury gives fewer margins to retailers as compared to Amul and Nestle

Table No. : 1.5: Changing Product Mix

Contribution to turnover

2007-08Contribution to turnover

2008-09

Chocolate 59%65%

Sugar Confectionery9%10%

Food Drinks 32%25%

Chocolates and confectionery products (75% of turnover)

For more than five decades now, Cadbury has enjoyed leadership position in the Indian chocolate market to the extent that 'Cadbury has become a generic name for chocolate products. Cadbury has leading brands in all the segments viz. bars (Dairy Milk, Crackle, and Temptations), count lines (5 star), panned confectionery (Gems) and wafer chocolates (Perk), clairs (Cadburys' clairs).

During 2008-09, Cadburys chocolate sales (65% turnover) registered a 9% value growth, aided primarily by growth in the flagship brand Dairy Milk. Dairy Milk contributes an estimated 30% to Cadburys sales. Gems and Five Star were re launched during the year to stem their undergrowth. Perk registered undergrowth during 2008 despite launch of new variants. New brand initiatives included the launch of Temptations in the premium segment and Chocki a low priced chocolate confectionery targeted at children. Recently Cadbury has launched Bytes.

TABLE NO. 1.6: MARKET SHARE OF CADBURY'S PRODUCT

I. CADBURY DAIRY MILK30%

FIVE STAR14%

PERK8%

GEMS7%

OTHERS41%

Graph No. 1.6:

Pie chart showing % share of Cadbury's product. From the above graph it has been clear that dairy milk alone enjoys the highest share of 30%, while 5 stars has 14% shares, perk with 8% shares, gems 7% shares and the remaining shares are rested with other products of Cadbury.

1.5. S.W.O.T ANALYSIS OF THE ORGANIZATIONSTRENGHTS

1. Cadbury is a company, which is reputed internationally as the topmost chocolate provider in the world.

2. The brand is well known to people & they can easily identify it from others.

3. Cadbury the world leaders in chocolate, is a well-known force in marketing and distribution.

4. Users have a positive perception about the qualities of the brand.5. Cadbury main strength is Dairy milk. Dairy milk is the most consumed chocolate in India.

6. By using popular models like Cyrus Brocha, Pretty Zinta and others Cadburys has managed to portray a young and sporty image, which has resulted in converting buyers of other brands to become its staunch loyalists.

7. Cadbury has well adjusted itself to Indian custom.

8. It has properly repositioned itself in India whenever required i.e. from children to adults, togetherness bar to energizing bar for young ones etc.WEAKNESSES

1. There is lack of penetration in the rural market where people tend to dismiss it as a high end product. It is mainly found in urban and semi-urban areas.

2. It has been relatively high priced brand, which is turning the price conscious customer away.

3. People avoid having their chocolate thinking about the egg ingredients.

4. Lack of launch of new products & Flavors.OPPORTUNITIES

1. The chocolate market has seen one of the greatest increases in the recent times (almost @ 30%).

2. There is a lot of potential for growth and a huge population who do not eat chocolates even today that can be converted as new users.

3. Using information and technology to bring efficiency in logistics and distributionTHREATS

1. There exists no brand loyalty in the chocolate market and consumers frequently shift their brands.

2. New brands are coming and existing brands are introducing new variants to add up to an already overcrowded market.

3. The company has large exposure to foreign currency exchange rate risk, mainly on account of imported cocoa beans and cocoa butter in US Dollar and Pound Sterling.chapter 2

OBJECTIVEs of the study & research methodology

2.1. SIGNIFICANCEIn this global and competitive era all business activity needs more complex superior and enhanced technology. In the present scenario chocolate industry has become more consumers oriented.

Research becomes a necessary for business activity to accelerate the business in a greater pace. Researcher shows the current position as well as strength and weakness of an organization and product, which helps in the formation of business plan. In the other hand opponents are waiting for us to take erroneous decision and take advantages of the situation. We can counter their move only through dynamic and effective tool of marketing research.

So it was a great pleasure to contribute to the dynamic field of marketing in the chocolate industry. The present research work on Cadbury has a significant role for organization to evaluate its policy and enhance their position in the market. The research work also shows the relationship between retailer-organization, retailer-customer, organization-customer, which is as important system as nerve system in human body.

2.2. MANAGERIAL USEFULNESS OF THE STUDY 1. Cadbury has begun recruiting management graduates in India to serve its global operations.

2. Factors for success: extensive distribution network, strong brands, customization to Indian market.

3. For Cadbury, India is: huge potential market, source of managerial talent.

4. Future plans, India: To explore larger portfolio or growth. To look for opportunities in SAARC region2.3. OBJECTIVES To analyze the brand perception for Cadbury chocolate of Customers with reference to other market players.

Market share of competitor's brands.

To study the consumer behavior of chocolates.

Analysis of the product, pricing, availability, quality, taste, advertising and packaging of Cadbury Chocolates.

To study the strategies & measures adopted by Cadbury for positioning its brands in the market.

2.4. SCOPE OF THE STUDY The study is restricted to South Delhi only. Efforts have been to have consumers surveyed in South Delhi.

1. Marketing research has its importance not only for consumers market but also it survey effectively to the producer of goods and services. The use of marketing research in consumer market may be explained on the basis of following services rendered by it.

2. It ascertains the position of a company in specified Industry.

3. It indicates the present, future trend of Industry and point out how the companys affairs are being turned up.

4. It helps in development and introduction of new product.

2.5. METHODOLOGYResearch in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The Advanced Learners Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Redman and Mory define research as a systematized effort to gain new knowledge. Some people consider research as a movement from the known to the unknown. It is actually a voyage of discovery.

Marketing Research is a process of collecting and analyzing marketing information ultimately to arrive at certain conclusion. The purpose of this research is to describe the research procedure. Research Methodology is the mean to plan out the working process or the course of action to reach the objective. It is extremely crucial and holds the key to the success of the survey. Cadbury India ltd. is which is marketing products having different products. Thus a survey method of marketing research is essentially exploratory in nature.

TYPE OF DATA:-PRIMARY DATA

Primary data was collected through structured questionnaire and face to face contact.

SECONDARY DATA

Secondary data was collected through websites, books, magazines, newspapers etc.

The methods of collecting primary and secondary data differ since primary data are to be originally collected while in case of secondary data the nature of data collection work is merely that of compilation.

COLLECTION OF PRIMARY DATA1. Observation method

2. Interview method

3. Through questionnaires

4. Through schedules OBSERVATION METHOD:-

Observation becomes a scientific tool and the method of data collection for the researcher when it serves a formulated research. Purpose is systematically planned and recorded and is subjected to checks and controls on validity and reliability. Under the observation method the information is sought by way of investigators own direct observation without asking from respondentSURVEYS [Questionnaire to public]:-Surveys are concerned with describing, recording, analyzing and interpreting conditions that exist or existed. The researcher does not manipulate the variable or arrange for events to happen Surveys are only concerned with conditions or relationships that exist, opinions that are held, processes that are going on, effects that are evident or trends that are developing. They are primarily concerned with present but at times do consider past events and influences as they relate to current conditions COLLECTION OF SECONDARY DATA

Secondary data means that are already available that is they refer to the data, which have already been collected and analyzed by someone else. When the researcher utilizes secondary data, then he has to look into various sources from where he can obtain them. In this case he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may be either published or unpublished data. Usually published data are available in:

Various publications of the central, state and local government

Various publications of foreign government or of international bodies and their subsidiary organization.

Technical and trade journals

Books magazines and newspapers

Reports publication of various associations connected with business and industry, banks, stocks exchanges etc

Reports prepared by various scholars universities economists etc in different field

Public records and statistics, historical documents and other sources of publish information.QUESTIONNAIRE DESIGN / FORMULATIONResearch Instrument:

Questionnaire

The questionnaire was formulated by keep in mind the following Points: -

Giving the respondents clear comprehension of the question.

Inducing the respondents to co-operate.

Giving instructions as to what is wanted.

Identifying the needs to be known.

Questionnaires: - A questionnaire consists of a set of questions presented to respondent for their answers. It can be Closed Ended of Open EndedOpen Ended: - Allows respondents to answer in their own words & are difficult to Interpret and Tabulate.Close Ended: - Pre-specify all the possible answers & are easy to Interpret and Tabulate.

TYPES OF QUESTIONS USED IN THIS PROJECTClose ended Questions: To know the choice of the people regarding various matters.

Dichotomous Questions

Which has only two answers Yes or No?Multiple Choice Questions

Where respondent is offered more than two choices. This is done to know the choice of the customers regarding different matters.

Time Frame3-4 weeks, June & July 2010Sampling Technique Used

Since the information required was not of a very technical nature and also looking at the scope of the project and the extent of the target segment, the sampling technique employed was Convenience Sampling. I administered the questionnaires.RESEARCH DESIGN

Research in common parlance refers to a search for knowledge. It is a scientific and systematic search for pertinent information on a specific topic.

Primary sampling has been done while completion of this report. The Secondary data for this report have been collected from different websites, from different journals. To have a comprehensive understanding of the brand strategy in widest possible dimension, the methodology applied for the study has been very detailed and descriptive. Here both qualitative as well as the quantitative data has been collected and analyzed with precision of relevance to the nature of study, i.e. After collection of data I have extracted the necessary information and placed it according to the report to provide a detail picture of chocolate industry.Type of Research Descriptive Research & Exploratory Research includes surveys and facts-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present Descriptive research also attempts to discover causes of certain events or changes that has taken place or is taking place. The methods of research utilized in descriptive research are survey methods of all kinds, including comparative and co-relational methods on secondary and primary data. In analysis of the, methodology chosen is descriptive research, where a questionnaire was prepared and distributed among customers and data collected through those questionnaire was then analyzed in order to arrive at a certain result.

RESEARCH PROCESS:-Type of Data Used:

Primary data

Collected through well designed and structured questionnaires comprising, which were filled by customers.

Secondary Data

Sources comprised of newspapers, books from the library, journals and periodicals as well as the Internet.

Data Analysis Tools:

To purposefully understand and analyze the Primary and Secondary data graphs, charts, figures and tables have been extensively used throughout the report. This method of representation provides the lucid flow of the report and aids in easy understanding of the subject and its inferences. Tables and Pie Charts depict the consumers satisfaction or dissatisfaction.

Data collected through questionnaire was then analyzed through Microsoft excel.Data Representation Tools: Pie charts and graphs have been used to show the opinions of the consumers regarding different products of Cadbury collected through questionnaire.

Data collected have been shown in terms of percentage for some questions.

Sample Size: 50 Respondents Area of study: Lajpath Nagar, Greater Kailash-1, South ExtensionLIMITATIONS

Because of time constraint sample size was the scope of this project is limited to areas in New Delhi only.

The estimates are done on average basis.

The project had scope for future research, which was beyond my resource due to time constraint and work pressure.

Because of time constraint sample size was restricted on 50.

Some of the respondents did not respond due to lack of time.

Some were biased towards their brand, which might not be giving them good service.

CHAPTER 3

CONCEPTUAL DISCUSSION

CONCEPT OF BRAND

The American Marketing Association defines a brand as, A brand is a name, term, symbol, or design, or a combination of them, intended to identify the goods or services of one seller and to differentiate from those of the competitors.Brands have been around ever since business began. The Greeks and the Romans used marks and names to identify their offerings. The word BRAND has its origin in the word brand which means to burn (In early times, farmer used to burn a mark or symbol on their animals to identify their livestock from those of others, a process called branding)

Branding in a modern content has always been an important aspect of marketing. Branding is inextricably linked to similarity. It becomes a necessity when identity is lost due to uniformity. Branding is used to differentiate one product from the other.

A brand is often taken to be the same as the product but its not so, brand is much more that a product . what turns a product into brand is that physical product is combined with something else-symbols, images ,feelings to produce an idea which is mere than different from the same of the parts. The two products and symbolism live and grow with one another. It is the partnership and mutual exchange. The physical and symbolic components together make the essence of branding is to lift the product to a higher plane. It makes the product relevant and meaningful for the target customerBRAND PERSPECTIVESThere is no single universally accepted perspective on brand. However, some communality is observable across all the perspectives. In order to appreciate the larger reality, an understanding of these perspectives is essential.1. Visual/verbal

2. Positioning3. Brand image

4. Added value

5. Perceptual appeal

6. Brand personalityVERBAL / VISUAL:- Lays stress on logo, trademark, packaging and name aspect of the brand.

E.g.: 3 pointed stars (Mercedes), golden (McDonalds) suggest brand identity.

Strong connection between the brands helps prospects, retrieve or recall the brand name upon seeing the color, purple reminds of Cadburys and red connects with Coke and so on.POSITIONING PERSPECTIVE:- Is creating a unique position in the prospects mind.

The brand must hold a position in the consumers mind that sets it apart from the host of players in the category.

For instance IBM owns computers, KODAK owns photography 1. VALUE PERSPECTIVE:- Considers a brand as a deliverer of value functional, expressive and central where

Functional value refers to normal performance aspects of brand;

Expressive values state more about customer than product/psychological aspects of customer like statues

And central values which are the most enduring and go to the core of customers systems of beliefs.

2. THE PERSONALLITY AND THE IMAGE PERSPECTIVEFocuses on the brand image and personality which is created in prospects minds,

All these perspectives view a brand from different angles. The purpose of branding is to achieve value differentiation. a brand is a product, the one that adds other dimensions to differentiate it. In some way from other products designed to satisfy the same need.

Not only it is the actual product, but it is also the unique property of a specific owner and has been developed over time so as to embrace a set of values and attributes (both tangible and intangible) which meaningfully and appropriately differentiate product which otherwise are very similar. On the competitive front, the brand achieves distinction. On the consumer front, the brand adds value. A brand modifies product in the consumers mind.WHAT IS A BRAND MADE OF?One way of looking at a brand is to look at its components. A brand has both product and perceptual components. The product component refers to the physical product consisting of a bundle of attributes which provides certain benefits to the customers, while the perceptual elements refer to an invisible halo surrounding the brand. These 2 components are combined to create strong brands since the physical product can be easily copied. The worlds top brands are building around strong perceptual components. Their essence lies in strong user imaginary, psychological benefit associations and brand personality. Now how a brand balances its product and perceptual components gives rise to its basic proposition whether its a symbolic, functional or a mixed brand.

WHAT IS A BRAND BASICALLY?

A brand is a perceptual entity that lies in the customers minds n the form of network of associations. It is a knowledge structure build around a name.WHY BRANDING IS IMPORTANT?

The marketing world is filled with 2 types of brand, those that win and the others that are left behind by the winners. Time and again various publications announce the list of top performing brands. The ones that feature in the list rejoice while the others look for the formulae to transform. The wining brands strike a chord with customers and at the same time is differentiated from the competitors. The competition has to be warded off or else a brand has a degree of degenerating into a commodity.BRAND POSITIONING

In the present over-communicated society simple push does not work. RIES & TROUR suggest that success in an over communicated society like the present one, creativity by itself cannot guarantee success, and strategy must take precedence over creativity. Accordingly, the brands have to be positioned in a prospects mind. They must own concepts of importance to the customer. Positioning is governed by first mover advantage. The brand must get into prospects mind first. For instance, Cadbury should be the first thing that comes to a prospects mind when they hear the word CHOCOLATE.

Positioning is about building image of a brand. It is about how the brand is going to be perceived in the market. KOTLER defines positioning as the act of designing the companys offering: an image to occupy a distinct place in mind of the target market. Positioning must result in creation of a customer focused value proposition. It must provide a consent reason for buying the product. Most successful brands occupy distinct position that sets them apart from competition and provide the target customers a reason to favor them.

There are two aspects of positioning-: the product & brand position. Product position refers to the relative standing of a brand on objective product parameters whereas Brand position is a perceptual entity & hence it can occupy a position only in the perceptual space .The SUBJECT of positioning is the PROSPECTS MIND, not the product. The key to positioning is creation of perception of value or relevance & distinction at the same time. For a brand to take parting the consumer decision process, it must clearly signal what it is all about.3Cs OF POSITIONING

1.TARGET CUSTOMER (Relevance)The first & foremost consideration in search for a position is the concept of target market or customers. Customers are important for two reasons:(a) Targets for positioning efforts

(b) Ultimate marketing targets to elicit a positive purchase response from themThe Target customers as the name suggests, is the target of the positioning efforts. Accordingly, customers expectations must be discovered. RISE & TROUT suggest in this regard that to find a unique position, you must ignore conventional logic. According to conventional logic you turn yourself or the product to find a unique position concept. For POSITIONING you must turn to the prospects mind. Potential position concepts reside in the prospects mind and not in the product or in creative imagination of marketer

2.TARGET COMPETITION (Uniqueness)

If a brand enters in a pristine value space where it meets no competition, it is the best strategy in a way. Positioning is all about choosing ones competitors. Once the value space is identified 2 types of competition could be identified:(a) THE DIRECT COMPETITIONS, for e.g.; Bata competes directly with liberty in shoe market.

(b) THE 2ND LEVEL takes place between 2 product categories competing to serve the same customer. For e.g.: Cadbury Dairy milk Chocolate now competes with traditional Indian sweets such as burfi served on all kinds of happy occasions.

The importance of factoring competition in the positioning process is to discover the occupied & unoccupied brand position when a brand has already occupied a position in the prospects mind.COMPANY OR BRAND

The previous two analyses provide information on two accounts: the value space & the competitive space. Key to successful Positioning requires simultaneous consideration of both. Single minded focus on customer value space creates customer focus & helps develop market relevant offerings. But this may lead to brands becoming undistinguished in competitive space because other competitors may offer similar value.

In the same vein, if concentration is ltd., it would certainly lead to unique or different propositions. But differentiation so achieved may not be valued, because uniqueness so achieved may come at cost of relevance. Combining the above two dimensions representing relevance (customer side) & uniqueness (Competitor side) enables the marketer to choose a path to Crete an image for the brand that is both relevant & unique.COMPETITIVE POSITIONING

KELLER ET AL argue that managers often pay too much attention to points of difference but pay little attention to two other aspects: Frame of reference and Brands common features with competitors. Effective competitive positioning does not require only paying attention to points of differences but also to points of parity. Exclusive focus on creating points of difference often causes the managers to ignore another important issue. That is, point of the reference that customers use to see and evaluate the brand.FRAME OF REFERENCE It is the starting point for competitive positioning. What the customers should expect the brand to deliver or perform is visualized & created by establishing a frame of reference. Two types maybe distinguished:

(a) When brands in the same category.

(b) Many times, a brand may seek to establish a point of reference in a different product category. For e.g.: chocolate coated wafers like Cadburys perk jumped the category to develop frame of reference with ready snacks.

POINTS OF DIFFERENCES

Once the positioning challenge is correctly established, the next positioning step is creating compelling points of differences. Mere promotion of the brand on the basis of differences is not a good strategy. Developing strong, favorable &unique associations is fundamental to creating brand differentiation.3 ways of building brand differentiation could be identified:

BRAND PERFORMANCEA brand could develop distinction in a chosen field by developing associations related to product performance. It focuses on the brands delivery on the functionally expected by the customers. e.g.: durability, price.

CONSUMER INSIGHTSFinally, when the above two methods of differentiation do not provide much scope for differentiation, the marketer can turn to consumers for possible insights into their problems.

BRAND POSITIONING STRATEGY OF CADBURYA brand has always been perceived as belonging to marketing domain - handling issues such as coining of a brand name, creating a value proposition and propagating it. Establishing a brand in consumer mindset and sustaining its presence is assumed to be the only strategic angle to brand management. But in today's dynamic business environment, such a shortsighted approach will hardly carry the brand farther in the market battlefield. Besides advertising and sales promotion, brand perception by consumers gets affected by several other factors like packaging, distribution efficiency, after-sale service (where applicable), speed of response to customer complaints. Shopping experience and delivery of the value proposition are also among the contributing factors.Perhaps very few product categories in India have seen as much excitement generation, widening of appeal and repositioning as chocolates. Strong brands are very important in the chocolate confectionery market. Almost 80% of chocolate purchases are made on impulse. Buyers generally decide quickly which confectionery product to buy with almost half of purchase decisions made within 10 seconds of arriving at the confectionery fixture in the store. "Cadbury India's" has been successful in revamping its brand portfolio and its repositioning efforts. It has reinvented and revamped its brand portfolio, strengthened its distribution network and relied heavily on promotions and advertising - while launching and re launching brands. Cadburys strategy to attract consumers is somewhat unique in a sense, instead of focusing on the product; it seeks to tap into emotions normally associated with chocolates. They have also adapted their strategies to the unique demands of the Indian retail sector. The strategy has clearly proved successful, as they have been able to build and maintain a leadership position in the market with many loyal customers.

The Cadbury brand is associated with best tasting chocolate. Marketing managers at Cadbury are working to ensure this association is continually developed through their 'Choose Cadbury' marketing strategy. Key concepts of quality, taste and emotion underpin the Cadbury brand. These core values help to differentiate Cadbury from other brands and ensure its competitive advantage.THE CADBURY FAMILY OF BRANDSThe Umbrella Brand

In the chocolate market the Cadbury brand has in excess of fifty per cent market share, selling 10 of the top 20 selling chocolate singles. Singles are individual bars sold over the counter.

Research data shows that the Cadbury brand equity is highly differentiated from other brands with consumers. Brand equity is the value consumer loyalty brings to a brand, and reflects the likelihood that a consumer will repeat purchase. This is a major source of competitive advantage. The Cadbury umbrella brand has endured in a highly competitive market, and has established the link, in the mind of the consumer, that Cadbury equals chocolate. The Cadbury umbrella brand image consists of four icons namely the Cadbury script, the glass and a half, dark purple colors and the swirling chocolate image. These elements create a visual identity for Cadbury that communicates the ultimate in chocolate pleasure. Consumer research is conducted regularly so managers can learn more about how the market perceives the brand. This research has confirmed that the swirling chocolate and 'glass and a half' are powerful images.Product BrandsThe Cadbury brand has a profound impact on individual product brands. Brands have individual personalities aimed at specific target markets for specific needs e.g. perk Is an ideal snack to have. These brands derive benefit from the Cadbury parentage, including quality and taste credentials. To ensure the success of product brands every aspect of the parent brand is focused on. Perk, bytes, ultra perk are clearly different and are manufactured to appeal to a variety of consumer segments. However, the strength of the umbrella brand supports the brand value of each chocolate bar. Consumers know they can trust a chocolate bar that carries Cadbury branding. The relationship between Cadbury and individual brands is symbiotic with some brands benefiting more from the Cadbury relationship, i.e. pure chocolate brands such as Dairy Milk. Other brands have a more distant relationship, as the consumer motivation to purchase is ingredients other than chocolate, e.g. bytes. Similarly issues such as specific advertising or product quality of a packet of Cadbury picnic or a crackle will, in turn, impact on the perception of the parent brand.IDENTIFYING BRAND STRATEGIESWe are all consciously and unconsciously affected by brands in our daily lives. When we go to purchase a pair of training shoes we rarely make a purely practical decision. There are numerous branded and non-branded options available. For many people, a pair of trainers must sport a brand logo because that will communicate certain values to other people. The confectionery market elicits similar conscious and unconscious feelings of passion, loyalty and enthusiasm. Brands play an important role in the confectionery industry. A brand is a name, mark, or feature, which distinguishes one product from another. A good brand effectively guarantees that it will deliver all of the qualities that the consumer associates with it. For many people, chocolate is Cadbury, and no other brand will do. This consumer loyalty is critical because of the value of the chocolate confectionery market and because, in all markets, a small number of consumers account for a large proportion of sales. Loyal customers are the most valuable customers to have because they will buy your product over and over again.

Cadburys has identified these brand values and adjusts its advertising strategies to reflect these values in different markets. Its strategy can vary from increasing brand awareness, educating potential customers about a new product, increasing seasonal purchases, or as is currently the case in the 'Choose Cadbury' campaign to highlight the positive emotional value of the brand.

THE CHOOSE CADBURY MARKETING STRATEGYCadbury introduced a new global marketing strategy called 'Choose Cadbury'. This strategy came about as a result of extensive research into consumer behaviors and perception. It is a campaign that perfectly illustrates how a brand can evolve and how different messages can be communicated without losing the core strength and brand values that are already established.

The classic icons have played a major role in establishing the look and feel of how Cadbury's advertisements should look through successive campaigns. These key 'look and feel' icons were heavily researched to ensure that the messages they impart are always relevant to the Cadbury consumer. In depth customer research is conducted to 'test' these messages. Research results confirmed that colors recognition of dark purple is strongly associated with Cadbury. Its logo is readily recognized and scores a ninety six per cent recognition level alongside other global brands such as Coca Cola and McDonalds. The glass and a half symbol, which plays a key role in the 'Choose Cadbury' strategy, continues to communicate the quality and superior taste of Cadbury's chocolate.

The central message of the 'Choose Cadbury' strategy hinges on the established glass and a half symbol. Is the glass half full or half empty? Cadbury suggests that the glass is always half full appealing to our emotions. Therefore, in choosing Cadbury we are taking a decision to embrace the positive. We are reassured that the Cadbury product will remain unchanged, (Cadbury is Chocolate and it still tastes good), but we are given more reasons to remain brand loyal (Cadbury is Chocolate - feels good i.e. positive, uplifting, mood enhancing, providing enjoyment and happiness). At no stage in the evolution of the Cadbury brand has there been as much reliance on taking ownership of the emotional side of eating chocolate as there is now. Owning the emotional territory for chocolate helps Cadbury to elevate its product in the mind of the consumer. With the 'Choose Cadbury' campaign consumers are being offered both logical and emotional reasons to buy a Cadbury product as a first option on every occasion.NEW PRODUCTS REFLECTING CONSUMER LIFESTYLES

New product development has played a key role in developing markets as brands strive to offer something to a consumer that is truly different. We take a crumbly flake texture or honeycomb for granted but, when introduced, they were remarkably innovative. Changing lifestyle patterns; eating on the go, and impulse snacking has and continues to play a private role in the confectionery market.The Cadbury product range addresses the needs of each and every consumer, from childhood to maturity, from impulse purchase to family treats. For example an analysis of the 'gift' sector highlights the importance of developing innovative products to address specific markets. Cadbury designs products to coincide with Diwali, raksha bandhan, Mother's and Father's Day and other calendar landmarks. Cadbury uses marketing strategies such as the 'Choose Cadbury' strategy to encourage a link between chocolate and these events ensuring there is a Cadbury chocolate.

Cadbury Gift. Com Is a B2C initiative from Cadbury India for their primary objective of leveraging the power of the Internet to Gift chocolates, online to Indians from anyplace in the world. Build an online community of people. Develop this initiative further to address the growing presence of Corporate Websites gifting. Realizing the growing potential of online sale of chocolates and similar products in India, Cadbury approached Scope Velocity to devise an end-to-end e-business strategy to tap this medium. Cadbury India asked Scope Velocity to carry out a strategic consulting report to define the functional requirements of the proposed gifting site. An exhaustive 6 -week study was carried out by two web consultants to define the client requirements and evolve a strategy for a gifting site. The scope involved identifying - trend of B2C transactions in India, content strategy, study of competition across important parameters, business plan, CRM tools, marketing strategy and target segment. The study also identified - various gifting items, logistics partner, payment gateway and security related issues.ADVERTISING IS USED TO PROMOTE A BRAND

The confectionery market is full of brands that need to fight for our attention. The role of advertising is to keep a brand in the mind of the consumer. We are constantly presented with countless brand images and messages on a daily basis. During the lifetime of a brand, companies will develop marketing strategies that communicate brand identity and core values to gain our attention. In order to keep its product competitive and contemporary, these messages need to change over time. Cadbury provides one of the most successful examples of how an advertising message can be modified from one campaign to the next to attribute new values to a brand giving consumers more reasons to buy Cadburys. Cadbury employs all types of advertising from the internet to posters, from TV, radio and cinema to print media. This same creative message is then communicated through point of sale, merchandising, package design and public relations.Extensive distribution network

Cadburys brands are available in over a million outlets across the country. The distribution network directly covers almost the entire urban population. The company has invested significantly in building such an extensive network. The company uses Information Technology to improve its logistics and distribution competitiveness. Cadbury has improved the distribution quality of its products with the installation of refrigerators at several outlets.This helps in maintaining product quality in summer, when sales usually dip due to the fact that the heat affects product quality and thereby consumption.

Creation of strong brands

Cadbury owes its success to strong brand equity and resultant consumer preference that it enjoys in India. The company has built strong brand equity through consistently high product quality, relevant, insightful and entertaining communication. Cadbury has developed new channels for marketing its brands such as Gifting and Snacking. The company places great emphasis in ensuring display dominance at the point of purchase.Customization of Products for India

Cadbury India has spent time in understanding the Indian consumers. Leveraging its 55 years of experience in India, the company has customized its products to the Indian markets. It also offers products at affordable price points so as to increase its market penetration for CadburyLeveraging the India Advantages

Though, India contributes to less than 5 per cent of the global revenues today, India is critical to the global strategy of the company.Managerial TalentCadbury has begun recruiting management graduates in India to serve its global operations.Huge Market Potential

India offers huge market potential and is a priority market for Cadbury. The company also leverages India as a manufacturing base for producing products for the overseas market. Cadbury India has 4 company owned factories and as many third party manufacturing contractors. BRAND AMBASSDOR AMITABH BACHCHANSuperstar Amitabh Bachchan's contribution to reviving the Indian economy cannot be underestimated. Banks, Homes, Loans, Car, Clothes, Colas, Health foodshe's endorsing them all. And more products are in the pipeline. But before the vadapav-wallahs could get to him, chocolate major Cadbury has appointed him as his brand ambassador. The company believes the reputation he has built up over the last three decades complements their own, which was built over a period of 50 years. The company believes that Amitabh Bachchan as brand ambassador will appeal to people from 6 to 60 years of age. Cadbury India Ltd Managing Director Bharat Puri made the announcement at a press conference in Mumbai.SALES PROMOTIONI. Diwali Promotion: Gift Pack with special packing was launched at various retail counters as well as websites at a special MRP of Rs100.II.Quantity purchase scheme for customers: On purchase of 5 pieces of Temptations one special pen with Cadbury inscription free.III. Quantity purchase scheme for retailers: Retailers for a one time purchase of Rs 8000 or more worth of chocolates would get a mini fridge for storing Chocolates in their shop which would remain with them as company property till they retail Cadbury Chocolates.IV. Quantity purchase scheme for Distributors: With purchase of Rs 5000 or more worth of Cadbury Chocolates and a minimum of 40% of this as Temptations the distributor can claim an additional 2%.HOW DID CADBURY DEAL WITH THE WORM CONTROVERSY?

Four years back, Cadbury'sfound itself in the eye of a storm, when a few instances of worms in its Dairy Milk bars were reported in Maharashtra. In less thantwo weeks, the company launched a PR campaign for the trade. And three months later, came an ad campaign featuring big B and a revamped poly-flow packaging.

Marketing and communications experts brought together by AICAR and the Subhash Ghoshal Foundation say that Cadbury moved quickly to bear the cost of damage & thanks to its equity with the consumers, Cadbury's won back consumer confidence, with hit on sales notwithstanding. In October 2008, just a month before Diwali, customers in Mumbai complained about finding worms in Cadbury Dairy Milk chocolates. Quick to respond, the Maharashtra Food and Drug Administration seized the chocolate stocks manufactured at Cadbury's Pune plant. In defense, Cadbury issued a statement that the infestation was not possible at the manufacturing stage and poor storage at the retailers was the most likely cause of the reported case of worms.

But the FDA didn't buy that.FDA commissioner, Uttam Khobragade told CNBC-TV18, "It was presumed that worms got into it at the storage level, but then what about the packing - packaging was not properor airtight, either ways it's a manufacturing defect with unhygienic conditions or improper packaging. That was followed by allegations and counter-allegations between Cadbury and FDA. The heat of negative publicity melted Cadbury's sales by 30 per cent, at a time when it sees a festive spike of 15 per cent.

For the first time, Cadbury's advertising went off air for a month and a half after Diwali, following the controversy. Consumers seemed to ignore their chocolate cravings. As a brand under fire, in October itself, Cadbury's launched project 'Vishwas' - a education initiative covering 190,000 retailers in key states. But what the company did in January 2009 is what really helped de-worm the brand.

By investing up toRs15 crore (Rs 150 million) on imported machinery, Cadbury's revamped the packaging of Dairy Milk. The metallic poly-flow was costlier by 10-15 per cent, but Cadbury didn't hike the pack price. Bharat Puri, managing director, Cadbury's India says, "While we're talking about afew bars of the 30 million we sell every month - we believe that to be a responsible company, consumers need to have complete faith in products. So even if it calls for substantial investment and change, onemust not let the consumers confidence erodes."

Simultaneously, Cadbury's roped in brand ambassador Amitabh Bachchan to do some heavy duty endorsement putting his personal equity on the line for the brand. The company upped ad spends for the Jan-March quarter by over 15 per cent. The recovery began in May 2008, and by June, Cadbury's claimed thatconsumer confidence was backTHINGS YOU DONT KNOW ABOUT CADBURYS DAIRY MILK?Dental researchers have discovered that tannin, found in all cocoa products inhibits the key enzyme in the formation of plaque. Chocolate is the only word of Aztec origin used regularly in English. Topcoat was a bitter water drink made from cocoa beans by the Aztecs. CADBURYS DAIRY MILK has won a number of awards for its advertising. It has received the Campaign of the Century award from the Bombay Ad Club for its real taste of life campaign as well as Campaign of the Year for its advertising films. CADBURYS DAIRY MILK emerged as the most trusted brand in Mumbai for the 2008 edition of Brand Equity'sAccording to consumer surveys, Cadburys Dairy Milk with its unique cube feature is the most delicious of chocolates providing the defining chocolaty taste. In 2008 Cadbury re-launched Cadburys Dairy Milk in India, as a part of a global exercise. The company leveraged the Cadburys Dairy Milk brand equity across its entire mounded chocolate portfolio under a master-branding scheme. Brands like Fruit & Nut, Crackle and Roast Almond were brought under the Cadburys Dairy Milk fold as a part of this initiativePromotionCadburys Dairy Milk advertising has always depicted a rich tapestry of human emotions and relationships. In the 1980s, it was positioned as the perfect expression of love captured in memorable copy Cadburys Dairy Milk redefined itself as the perfect expression shared good feelings. The strategy proved a winner. Brand Cadbury grew by over 50% in sales volumes. Then the next stage of growth for the brand dealt with popularizing consumption in a social context, especially in more traditional settings like weddings. The launch of the Khaanein waallon ko khaanein ka bahana chahiye campaign helped reposition Cadbury and substantially increase penetration levels.

The media strategy was to let the two co-exist towards a common vision: A Cadbury in every pocket. The brand penetrated under a master-branding scheme into smaller towns and sales volumes grew by 40% (Source: internal sales data) brought under the Cadburys Dairy Milk fold as a part of this initiative. The larger sized Cadburys Dairy Milk packs are poly-flow coated, heat-sealed aluminum foil wrapped in the branded outer package. The company believes that these are pioneering initiatives in chocolate penetration in the Indian market it must multiply the occasions for consumption in order to compete with local sweets. That marketing vision was what prompted the company to engage megastar Amitabh Bachchan for the hugely successful commercial Jab Pappu pass ho jaye kuchh meetha ho jaye.When Pappu finally passes his friends pass out chocolates the addition of another joyous occasion to be celebrated with Cadburys Dairy Milk. Pappu pas ho gaya actually became a part of street language and contributed in strengthening consumer affinity with the brand proposition of celebrating joyous occasions with Cadburys Dairy Milk. The interactive campaign a tie-up with Reliance India Mobile service that allowed students to check their exam results using their mobile service and encouraged those who passed their examinations to celebrate with Cadburys Dairy Milk also bagged a bronze Lion at the prestigious Cannes Advertising Festival 2008 for best use of internet and new media.Brand Values

Cadbury Dairy Milk stands for purity: purity of emotions, feelings and expressions. Research has shown that not only is the colors purple strongly associated with Cadburys, but also the Cadbury logo itself has the highest recognition of any logo among popular consumer brands. The glass-and-a half emblem, the corporate purple and the flowing script have all become with this brand. Cadbury' Creative Launch A new after dinner' segment. Cadbury India Limited, in its endeavor to continuously provide a chocolate- experience, brings the magic of Cadbury Dairy Milk (Cadburys Dairy Milk) Desserts - with rich indulgent crme center, in exotic & traditional flavors of Tiramisu and Kalakand. The rich tastes of Cadburys Dairy Milk combined with the unique crme center in exotic flavors provide a special chocolate experience. In 2008 Cadbury Dairy Milk celebrated 100 years of its existence. To commemorate the occasion, limited edition vintage packs of Cadburys Dairy Milk were launched in India.

CHAPTER - 4

DATA analysiS

SAMPLE SIZE: 40 CONSUMERS1. NORMALLY PREFER AS A SWEET ITEM Chocolates:

53%

Ice creams:

11%

Traditional Sweets: 28%

Cake:

6%

Figure No. 4.4In the survey it was found that the consumers had a preference of CHOCOLATES over other sweet items like ice creams, traditional sweets. This is a fair reason for Cadbury to rejoice.

2. DO YOU LIKE CADBURY CHOCOLATES AS COMPARED TO OTHER BRANDS? Very much: 59%

Okay Okay: 28%

Not much: 11%

Not at all: 2%

Figure No. 4.6In the survey it was found that about 60% respondents liked Cadbury chocolates very much, 28% found them okay types, about 10% dint like them much, whereas 2% of the group dint like the chocolates. Since most of them are fond of Cadbury chocolates, it is a reason for Cadbury to rejoice.3. HOW MANY TIMES DO YOU BUY CADBURY CHOCOLATES?

Once every day:

33%

2-3 times a week:

30%

Once a week:

12%

Special occasions: 25%

Figure No. 4.7The consumer buying pattern is very important for a company to decide on the distribution strategy & other related strategies to position its product. Cadbury should focus on increasing its distribution outlets.4. WHERE DO YOU NORMALLY BUY CADBURY CHOCOLATES FROM? Kirana shop: 79%

Supermarkets: 9%

Both:

12%

Figure No. 4.8It is very important to determine the markets where the sales are maximum, in order to make a suitable distribution channel. It was seen that most of the sales were made through the kirana shops and the rest through supermarkets & both. 5. WHAT ARE THE TOP ATTRIBUTES A CONSUMER LOOKS FOR WHILE MAKING DECISION? 1st priority: Taste

2nd priority: Brand

3rd priority: Packaging

4th priority: Flavors

5th priority: Sweetness/less sweet

6th priority: Calories

7th priority: Price

Figure No. 4.9On an average the scale of preference was as follows:

28% respondents said taste was the most important factor of selection

27% respondents said brand was the most important factor of selection

25% respondents said ingredients/ flavors was the most important factor of selection

20% respondents said packaging was the most important factor of selection.6. WHICH BRAND OF CHOCOLATES YOU PREFER?

Cadburys:

57%

Nestle & Cadbury:

18%

Cadbury & Foreign Brands: 10%

Only Foreign Brands:

9%

Amul:

2%

Nestle:

2%

Nestle & Foreign Brands: 2%

Figure No. 4.10It was seen that most of the respondents (more than 50%) preferred Cadburys over the other brands like nestle and other foreign brands. It shows that Cadbury is the undisputed market leader in terms of both sales and brand perception.7. WHAT CONSUMERS THINK ABOUT THE QUALITY OF VARIOUS CHOCOLATE BRANDS, IN COMPARISON WITH CADBURY? Cadbury

56%

Nestle

32%

Amul

9%

Others

3%

Figure No. 4.11Quality has a huge impact on customer satisfaction. It was found that Cadbury offers a very good quality products .More than 50% people preferred Cadbury chocolates over other chocolates, in terms of the quality.8. WHAT CONSUMERS THINK ABOUT THE PRICE OF VARIOUS CHOCOLATE BRANDS, IN COMPARISON WITH CADBURY?CADBURY2080

NESTLE2575

AMUL3070

OTHERS1090

Figure No. 4.12Price is an important determinant of how the product & brand are going to be perceived.

In terms of the price, Cadbury is preferred. 80% of people thought that Cadbury offered reasonable products and only 20% thought the products to be expensive.

9. WHAT DO CONSUMERS THINK ABOUT THE AVAILIBILITY OF VARIOUS CHOCOLATE BRANDS IN COMPARISON WITH CADBURY?CADBURY93%7%0%

NESTLE86%12%2%

AMUL77%16%7%

OTHERS94%6%0%

Figure No. 4.1310. WHAT do the consumers THINK ABOUT THE TASTE OF VARIOUS CHOCOLATE PRODUCTS, IN COMPARISON WITH CADBURY?

Figure No. 4.14Taste plays a very important role in deciding how satisfied the consumer is. It is an important ingredient of product differentiation. More than 50% people were satisfied by Cadburys taste. 11. ROLE OF ADVERTISEMENT IN INCREASING THE COMPANIES MARKET SHARE?CADBURY928

NESTLE8614

AMUL919

OTHERS964

Figure No. 4.15An advertisement plays a very crucial role in increasing the sales of chocolates which is clearly seen in the above graph Cadbury enjoys a lot of benefit from advertisements.

12. IS THERE ANYTHING LACKING ACCORDING TO YOU IN YOUR PREFERRED BRAND? No: 84%

Yes: 16%

Figure No. 4.16The respondents, who replied yes, have stated the following attributes as lacking in the existing varieties of chocolates:

Lack of chocolates in attractive shapes

High price

Not enough crunchier

Not good as compared to foreign brands13. ARE THE PRESENT CHOICES AVAILABLE IN CHOCOLTES COSTLY? IF YES, WHAT WILL BE YOUR IDEAL PRICE RANGE? Yes: 45%

No: 55%QuantityExisting pricesIdeal price range

40 gmRs 18-20Rs 12-15

23 gmRs10Rs 6-8

15 gmRs 5-7Rs 3-5

Figure No. 4.1714WOULD YOU PREFER TO SWITCH TO ANOTHER BRAND IF IT IS CHEAPER? Yes:

53%

No:

43%

Indifferent: 4%

Figure No. 4.18Most of the respondents were price sensitive.15. CELEBRITY ENDORSEMENT MATTERS? Yes

62%

No -

24%

Not completely 14%

Figure No. 4.1962% of respondents said that the tended to buy more if their favorites star endorsed the chocolate,24% said that it dint matter & to the rest 14% ,it mattered but not completely.

16. NEW FLAVOUR INGREDIENT98% of respondents said that they wanted a healthier, less sweet and lesser calories chocolates which even diabetic people can eat. Only 2% said that they wanted chocolates to be sweeter.

54% of the respondents said that they wanted new flavors such as:

Vanilla-

10%

Butterscotch- 9% Black forest- 2%

Strawberry- 10%

Coffee-

5%

Mint-

4%

Elaichi-

1%

Swiss flavors- 1%

Cake flavours-1%

Kesar-

2%

Caramel

5%

Bitter cocoa-2%

Ice cream chunks in between of chocolate balls

28% of respondents said that they want an abundant of nuts and dry fruits like cashews, almonds, pistachios, anjeer, walnuts and so on.

27% of the respondents said that they want fresh fruits/ fruit flavored chocolates like:

Litchi-

1%

Orange-

2%

Mango-

6%

Fresh pineapple-3%DATA ANALYSIS OF RETAILERS

1. WHICH BRAND OF CHOCOLATES THE BRAND SELLS?

Figure No. 4.2.1 22% of retailers stock Cadburys

19% or retailers stock Nestle

13% of retailers stock Amul

3% of retailers stock imported brands.

2. WHICH BRAND HAS THE HIGHEST SALES?

Figure No. 4.2.2 CADBURY-86%

NESTLE-14%3. WHEN IS THE SALE CHOCOLATES THE HIGHEST?

Figure No. 4.2.3Sales are normally higher during Festivals. Special occasions like Valentines Day, Friendship day.CHAPTER 5FINDINGS & RECOMMENDATIONSFINDINGS In the age group of 16-20 and 21-30, the average monthly spend is not influenced by the place of residence/ social class but rather on, where a person studies/works i.e by the social] circle of his friends and colleagues.

The consumers by and large are satisfied with the present choices available in chocolates i.e. there are no complaints of consumers as regards to existing varieties of chocolates.

However there are many new wants and demands of consumers in terms of new flavors and ingredients of chocolates which the present brands of chocolates have not introduced into the Indian markets.

There is a substantially low margin of difference in terms of people who are sensitive to price of chocolates and hence it cannot be proved conclusively that introducing a chocolate at a lesser price than the prevailing price will lead to capturing of market share.

Consumers attach more value to the brand of the chocolates as well as the packaging i.e. the quality of the chocolates.79% of chocolate sales happen through kirana shops i.e. mom and pop shops which says that chocolate is a commodity which has to be available to the consumer when and where he wants it. The sales of chocolates largely depend on its availability to the consumer at his convenience.

The chocolate confectionery market elicits conscious and unconscious feelings of passion, loyalty and enthusiasm. Almost 80% of chocolate purchases are made on impulse. Buyers generally decide quickly which confectionery product to buy with almost half of purchase decisions made within 10 seconds of arriving at the confectionery fixture in the store. Brands play an important role in the chocolate confectionery industry. A brand is a name, mark, or feature, which distinguishes one product from another. A good brand effectively guarantees that it will deliver all of the qualities that the consumer associates with it.

For many people, chocolate is Cadbury, and no other brand will do. This consumer loyalty is critical because of the value of the chocolate confectionery market and because, in all markets, a small number of consumers account for a large proportion of sales. Loyal customers are the most valuable customers to have because they will buy your product over and over again. Research data shows that the Cadbury brand equity is highly differentiated from other brands with consumers. Brand equity is the value consumer loyalty brings to a brand, and reflects the likelihood that a consumer will repeat purchase.

This is a major source of competitive advantage. The Cadbury umbrella brand has endured in a highly competitive market, and has established the link, in the mind of the consumer, that Cadbury equals chocolate. The Cadbury brand is associated with best tasting chocolate. Marketing managers at Cadbury are working to ensure this association is continually developed through their 'Choose Cadbury' marketing strategy. Key concepts of quality, taste and emotion underpin the Cadbury brand. These core values help to differentiate Cadbury from other brands and ensure its competitive advantage.

The Cadbury brand has proven itself to be a leader in a highly volatile and competitive market because it has successfully established, nurtured and developed its umbrella brand and growing portfolio of products. Perhaps very few product categories in India have seen as much excitement generation, widening of appeal and repositioning as chocolates. Cadbury India's" has been successful in revamping its brand portfolio and its repositioning efforts. It has reinvented and revamped its brand portfolio, strengthened its distribution network and relied heavily on promotions and advertising - while launching and relaunching brands.

Cadburys strategy to attract consumers is somewhat unique in a sense, instead of focusing on the product; it seeks to tap into emotions normally associated with chocolates. They have also adapted their strategies to the unique demands of the Indian retail sector. The strategy has clearly proved successful, as they have been able to build and maintain a leadership position in the market with many loyal customers.

Cadbury introduced a new global marketing strategy called 'Choose Cadbury'. This strategy came about as a result of extensive research into consumer behaviors and perception. It is a campaign that perfectly illustrates how a brand can evolve and how different messages can be communicated without losing the core strength and brand values that are already established

New product development has played a key role in developing markets as brands strive to offer something to a consumer that is truly different The Cadbury product range addresses the needs of each and every consumer, from childhood to maturity, from impulse purchase to family treats. For example an analysis of the 'gift' sector highlights the importance of developing innovative products to address specific markets. Cadbury designs products to coincide with Diwali, rakshabandhan, , Mother's and Father's Day.

The choco