project report on cadbury

ACKNOWLEDGEMENT

The successful completion of any work would be always be incomplete unless we mention the valuable cooperation and assistance of those people who were a source of constant guidance and encouragement , they served as bacon light and crowned our efforts with success.

I would like to extend our sincere gratitude to our Prof. VIJAY NAGRANI for his guidance.

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PREFACE

The Cadbury’s, India’s number one chocolate, is able to share their market insights based upon unparallel breath of chocolate experience.

The merger in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the lead in both, the confectionery and soft drink market and becoming a major force in the international market. Cadbury Schweppes today manufactures product in 60 countries and trades in staggering 120.

This project is a sincere effort to study the buying behavior of consumers when they buy chocolates. A descriptive research procedure had been applied to come to the conclusions of the project.

A detailed questionnaire had been prepared and the responses of the samples had been collected for the analysis. The project later ended with the analysis of the responses keeping the limitations under consideration.

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EXECUTIVE SUMMARYTITLE: “ANALYSIS OF THE BUYING PATTERN OF CADBURY CHOCOLATE IN THE MARKET WITH RESPECT TO ITS COMPETITORS”.

Rationale of study:The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadbury’s, India’s no.1 Chocolate, is able to share their market insights based upon unparalleled breath of chocolate experience. Cadbury has grown from strength to strength with new technologies being introduced to make the Cadbury confectionary business, one of the most efficient in the world. This report studies about buying behavior of consumers in case of chocolates.

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CONTENTS1. INTRODUCTION TO THE STUDY 05-17

Introduction of Cadbury 05-06 History and development of Cadbury 07-10 Introduction of Nestle 11-16 Objective of study 16 Hypothesis 17

2. PRODUCT PROFILE 18-27

Cadbury product 19 Market segmentation 21

3. RESEARCH METHODLOGY 28-30

4. DATA ANALYSIES AND INTERPRETION 31-43

5. CONCLUSION AND LIMITATIONS 44-45

APPENDIX 46-51

QUESTIONNAIRE BIBLOGRAPHY

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INTRODUCTION

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INTRODUCTION

The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadbury’s, India’s no.1 Chocolate, is able to share their market insights based upon unparalleled breath of chocolate experience.

Cadbury has grown from strength to strength with new technologies being introduced to make the Cadbury confectionary business, one of the most efficient in the world. The merger in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the lead in both, the confectionary and soft drink market and becoming a major force in the international market. Cadbury Schweppes today manufactures product in 60 countries and trades in staggering 120. The Cadbury story is a fascinating story of a family business that grew in one of the biggest, most loved chocolate brand in the world.

This project is a sincere effort to study the buying behavior of consumers when they buy chocolates. A descriptive research procedure had been applied to come to the conclusions of the project.

A detailed questionnaire had been prepared and the responses of the samples had been collected for the analysis. The project later concluded with analysis of the responses keeping the limitations under consideration.

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The legend called Cadbury

1824 – A business was opened in 1824 by a young Quaker, John Cadbury, in Bull street Birmingham which was to be the foundation of Cadbury Limited, now one of the world’s largest producer of chocolate.

1831 – By this year the business had changed from a grocery shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa. This was the start of Cadbury manufacturing business as it is known today. A larger factory in Bridge Street Birmingham was rented in 1847, John Cadbury was joined by his brother Birmingham and the business became Cadbury Brother of Birmingham.

1861 – John Cadbury resigned his business and handed over to his sons, Richard, 25 and George, 21 who after 5 difficult years almost shut down the business to take up other vocation. Fortunately for generation of chocolate lovers, they didn’t.

1866 – Saw a turning point for the company with the introduction of a process for pressing the cocoa butter from the coca beans. This not only enabled Cadbury Brothers to produce pure coca essence, but the plentiful supply of coca butter remaining was also used to make new kind of eating chocolate. The essence was advertised as ‘Absolutely pure, therefore best’.

1879 – Business prospered from this time and Cadbury Brother outgrew the Bridge Street factory, moving in 1879 to a ‘Greenfield’ site some miles from the center of Birmingham which came to call Bourneville. The opening of the Cadbury factory in a garden also heralded a new era in industrial relations and employee welfare with joint consultation being just one of the introduced by the pioneering Cadbury Brothers.

1899 – In this year the business private limited company – Cadbury Brothers Limited. Progress since the start of the century through the inter – war years onwards has been rapid. Chocolate has moved being a “luxury” item to well within the financial reach of everyone.

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1905 – Cadbury has many famous brands with one of major success story being Cadbury’s Dairy Milk chocolate launched in 1905, today Britain’s favorite moduled chocolate bar.

Cadbury today is the market leader in the U.K chocolate confectionary market, employing the most advanced processing technology and management information and control techniques. The company is the confectionary division of Cadbury Schweppes plc which is major force in the confectionary and soft drinks international market. World - wide Cadbury is one of the pre – eminent names in confectionary with impressive range of famous brands.

Quality has been the focus of the Cadbury business from the very beginning as generations have worked to produce chocolate with that very special taste, smoothness and snap, so characteristics of Cadbury’s chocolate.

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Cadbury’s Dairy Milk StoryChocolate has been enjoyed by successive generation since the manufacturing process was developed in the Victorian Times. Good chocolatiers is an art form depending on recipe traditions, which have grown over the years. Chocolatiers have use their skills to make balanced recipe in which all the ingredients combine to produced chocolate with all the characteristics that enable full delicious taste to be enjoyed by the consumers.

By today’s standards the first chocolate for eating would have been considered quite unpalatable. It was the introduction of the Van Houten cocoa press from Holland that was the major breakthrough in the chocolate production as it provided extra cocoa butter needed to make a smooth glossy chocolate.

Cadbury’s Milk Tray – 1915Milk Tray has maintained its popularity in the changing world since the milk chocolate assortment made with the famous Cadbury’s Dairy Milk chocolate was first introduced in 1915. The name ‘tray’ derived from the way in which the original assortment was delivered to the shops. Originally Milk Tray was packed in five and as half pound boxes, arranged on trays from which it was sold loose o customers. The half pound deep – lidded box with the traditional purple background and gold script was introduced in 1916, followed by one pound box in 1924.With its stylish, without frills presentation Milk Tray was the assortment for everyday, not just special occasion and it represented the best buy in the chocolate for millions of people. The pack design has been regularly updated and the assortment itself has changed in line with consumers taste and preferences.

By the end mid – thirties the Cadbury’s Milk Tray assortment outsold all its competitions and today it is still one of the most popular boxes of chocolates in this country.

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The secret of Cadbury’s successWhat is the secret of Cadbury’s continuing success first there’s the careful selection of the finest coca beans from west Africa, as well as tasty hazel nuts from Turkey and the fine sheet and choicest natural ingredient available to us anywhere. Finally there’s skillful marketing Cadbury always takes extreme care in selecting and marketing the right range of product in every cause.

The right product, the right partners, the right marketing, the promotional back up and the right employees. These are the ingredients in Cadbury’s latest recipes for success.

Right from the stand Cadbury Dairy Milk Chocolate success has been based on 3 factors:-

Quality Value for money Advertising

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NESTLE INDIATHE NESTLE India stock has been bubbling with activity in an otherwise listless equity market.

Till date, the stock has surged 77 per cent from its low of Rs 304 in May 2000 and now commands a valuation 39 times the expected earnings for 2000. This is steep by FMCG standards.

The recent surge in the stock is partly driven by the announcement by the parent, Nestle SA, that it would use the creeping acquisition route to mop up another five per cent in Nestle India through open-market purchases. But improving the stock's valuation can also be traced to good financial performance in a market starved of healthy earnings numbers.

On a comeback trail

The resumption of its coffee exports to Russia and a favorable input price environment pepped up Nestle India's net profit growth to 28 per cent in the first nine months of 2000. Sales growth in this period was 10.4 per cent, with domestic sales rising 9.8 per cent and export sales 13.8 percent. In reality, the growth in sustainable net profits was higher than reported as the company took an additional one-time charge of Rs 14.70 crore in the first nine months of 2000 for provisions against contingencies.

Unusually, low input prices may have contributed considerably to margin expansion. Continuing surpluses in global production have pushed both coffee and cocoa prices (the two key inputs for Nestle India, apart from milk) to historic lows in 2000. While coffee prices are hovering close to their seven-year lows, cocoa prices recently bounced off their lowest levels in three decades.

With global agencies forecasting high carry-in stocks for the next season, the soft input price advantage could be with Nestle for the time being. Does this mean Nestle India will sustain its healthy earnings performance over the

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next couple of years? This will depend on its ability to revive sales growth in its domestic product categories.

Greener pastures at home

Nestle's 10.4 per cent sales growth in the first nine months of 2000 is partly magnified by the low base of comparison. The cessation of coffee exports to Russia due to the economic crisis there, led to a 38 per cent drop in export sales (and a 5 per cent drop in net sales) for Nestle India in 1999.

Instant coffee exports to Russia resumed this year, but the business remains poor because realizations have fallen in line with green coffee prices. Since realizations in the export market are unlikely to look up in the next year, Nestle will continue to look to its domestic product portfolio to sustain earnings growth.

In recent times, as with other FMCG companies, Nestle India's topline growth in the domestic market was unimpressive, at around 8 per cent in 1999 and 9.8 per cent in the first nine months of 2000. In the domestic market, Nestle India has traditionally derived its revenues from five product baskets -- coffee (Nescafe Select, Sunrise); milk products (Milkmaid condensed milk and ready mixes, Coffeemate coffee creamer, Everyday Dairy Whitener); weaning foods for infants (Cerelac, Nestum, Lactogen); chocolates/confectionery and malted beverages (Milo, KitKat, Charge, Munch, Polo); and food products (Maggi noodles, soups).

Cash cows slow down

Of these, weaning foods and milk products are the cash cows, with dominant market shares in both businesses. But as these are mature products, they appear likely to deliver steady, and not scorching, growth rates. Sales growth in these businesses was less than five per cent in 1999-2000.

In chocolates and instant coffee, the growth prospects appear brighter, but Nestle faces intense competition from the players with the dominant market shares. While Unilever and Tata Coffee are significant threats in the coffee market, the market leader Cadbury India has been a potent threat in the chocolate confectionery market.

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Nestle's Kitkat has actually ceded market share to Cadbury's Perk in the past year. The market for specialized food products such as soups and noodles holds healthy growth potential. But the market is relatively small and players such as International Bestfoods, Unilever and Dabur are vying with a host of imported brands and regional players for a share of the pie.

Stretching existing businesses

Over the past year, Nestle has devoted considerable attention to the expansion of its domestic businesses. It has drawn brands such as Coffeemate coffee creamer, Frappe cold coffee and Nescafe Gold from the Swiss parent's portfolio to expand its milk products and beverages range. Incidentally, the inputs from the parent do not come free. Nestle India paid its parent a Rs 53.69-crore royalty in 1999 (net profits for the year were Rs 98.47 crore). Royalty payments accounted for 3.5-4 per cent of sales over the past three years.

Nestle has used the soft input prices to reduce prices of its coffee and chocolate brands. Products such as KitKat and Munch in low-unit price packs have been used to encourage trial and bolster flagging volumes. But these moves will take time to pay off.

However, the revival in the 2000 third quarter domestic sales is heartening. For the quarter ended September 2000, Nestle reported an 18 per cent growth in domestic sales (export sales declined 8 per cent due to lower realizations). Considering that Nestle has reduced both coffee and chocolate prices over the past year and held other product prices, this indicates volume growth of a higher order.

A plan to expand the network of Nescafe vending machines and establish coffee bars to encourage out-of-home consumption of coffee is also on the cards.

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Testing the waters

Over the past year, the company has also announced forays into three new areas -- liquid milk, bottled water and biscuits. The foray into biscuits is through the joint venture Excelsia Foods, so the contribution to Nestle's revenues may at best be in the form of dividends for now.

Liquid milk and bottled water are businesses that hold immense growth potential. Larger players can expand through higher penetration levels and at the expense of the unorganized segment. However, both these segments are quite crowded with feature listed and unlisted players which have considerable financial muscle.

In the liquid milk segment, Nestle will be up against the formidable Amul, apart from a host of private dairies with established clientele.

In the bottled water market, the market leader, Bisleri (of Parle Products), has had to contend with competition from scores of me-too brands, apart from Pepsi's Aquafina, Coca-Cola's Kinley. Going forward, competition is only likely to increase, with Britannia planning to launch more bottled water brands from its foreign collaborator Danone's portfolio (Evian, one of the largest bottled water brands, is already on shop shelves).

Striving for niches

Nestle India has already launched two bottled water brands in the domestic market -- the internationally renowned Perrier, followed recently by its sparkling mineral water brand, San Pellegrino (reputed to be sourced from the Swiss Alps).

However, both products are for upmarket consumers. The premium pricing suggests that the products will remain niche products with relatively small target markets. Pure Life, the mass market bottled water brand to be launched shortly, will determine the success or failure of Nestle's bottled water foray.

Nestle India has also shied away from the mass market for liquid milk in plastic pouches, and instead restricted itself to ultra heat treated (UHT) milk in

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Tetrapacks. The product is priced at a substantial premium to the other local brands.

Investment outlook: Nestle's new product forays are into extremely competitive markets and investments in the new businesses are likely to be high over the next few years.

In this respect, the advantage of soft input prices, high cash flows available from the stable businesses (such as weaning cereals and coffee) and the financial might of the parent, Nestle SA, will stand Nestle India in good stead.

The royalty to the parent should ensure that Nestle India continues to enjoy ungrudging access to the parent's product portfolio. In many respects, in India Nestle is pitted against its key adversaries worldwide -- Groupe Danone and Unilever. In the foods business at the global level, both companies are considerably smaller than Nestle SA.

But marketing prowess, rather than size is likely to determine the success of Nestle India's new product forays in the next couple of years. Since the high growth rates of this are partly on account of the low base of last year, the growth rates are likely to reach more moderate levels next year. The stock continues to be a good investment option for investors with a three-year horizon. But since the recent uptrend is partly on account of factors unrelated to the fundamentals, there could be some downside to the stock in the near-term.

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OBJECTIVE OF THE PROJECTOur main objective of the study on this project was to “analyze the buying pattern of Cadbury chocolate in the market against its competitors”.

Following are the some of the main objective of our report:

Analyze the buying behavior of consumers regarding chocolate. Comparative study of Cadbury chocolate in the market with its

main competitors. 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. To find advertisement effect consumer buying behavior. To find which promotion scheme affect more.

This report gives the help to the marketers for analyzing the different opportunities in the chocolate industry.

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HYPOTHESIES

Cadbury are more preferred brand than other brand.

Diary milk is number 1 sub brand of Cadbury.

Price is most important factor of consumer buying behavior.

Most of customer recalls advertisement at a time of purchasing chocolate.

Attractive display inside store more affects at the time of purchase a chocolate.

Most of people like HARD chocolate.

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PRODUCT PROFILE

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Cadbury Product

1. Dairy Milk

2. 5 Star

3.Perk

4. Celebration

5. Temptation

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Cadbury SchweppesCadbury Schweppes plc, a global beverage and confectionary giant with annual sale of Rs 20,000 crores,is the world’s number one non – cola soft drink company having bottling and partnership operations in 14 countries and franchises of its brand in a further 86 countries around the world. Its Hundred Percent subsidiary in India named Cadbury Schweppes Beverage India (private) Limited (CSBIL) started operation in March 1995. The first brand was launched was crush which was later followed by Canada Dry, Schweppes Tonic Water, Schweppes Bitter Lemon.

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

As its CEO Mr. Ashok Jain says, “we are the software, they are the hardware”.

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Cadbury’s Market SegmentMarket place for any product is comprised of many different segments of consumers, each with different needs and wants. Markets segmentation can be defined in a number of ways such as:

Demographic variables (e.g. Consumers are groups, gender, material states income etc…)

The lifestyle of consumers (i.e. their interests and activities) the benefits which consumers look for in a product or on the occasions when the product might be consumed.

Cadbury takes into account all these factors when producing a range of products. It targets different segments within the market, such as the.

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.

To meet the objectives of our project, we segmented the market on the basis of age and focused on age group 5 o 35 yrs.

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The Real Taste of Rejuvenation

It was the market – leader, but sales inched along. It focused firmly on its target segment, but the real buyer lay beyond. For seven long years, Cadbury’s Dairy Milk chocolate suffered stagnancy even as other consumer products boomed. Just how did the company rejuvenate an old brand to create the marketing megs-hit of the 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 12 months, starting February, 1994, the Rs. 314 crore confectionery makers Cadbury embarked on the most outrageous repositioning exercise in the recent history of Indian marketing. For, it systematically dismantled the franchise that the company had built over 30 years of its flagship brand, Cadbury’s Dairy Milk (CDM)-Cadbury’s Milk chocolate until 1986-destroying the very fundamentalof generic association that had made million of Indians refer to a bar of a chocolate as a “Cadbury”.

More proof of the chocolate is in the eating: two years into process, CDM’s market share at 25%, with sale rising by an average 40% per annum.

The Diagnosis

Today, The Real Taste of Life campaign, which served Up chocolate in general, and COM in particular, into the consciousness of adult, has already become a classic of advertising and marketing. By 1993, Cadbury was desperately seeking growth for the brand… “With a market share of 70%, trying to win away customers from competitors in this stagnant market wouldn’t help. They had to find new customers, people who’d never bought chocolate before. Or, they had to increase consumption levels”. The obvious solution, in a peculiar predicament. Despite low penetration, both the brand and the category were displaying symptoms of age: faltering growth, high recognition, and lack of excitement. The market research revealed the cause of the graying: chocolate wasn’t a snack in India.

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“In mature markets, chocolate straddle a continuum, from boutique

Product – packaged raw indulgence – to a casual food”. So, Cadbury whipped up a growth solution that involved associating the brand with snacking and functionally, which inevitably go together with high consumption rates in the Western markets.

The next step: identify the barriers preventing consumers from chocolate as a snack. A battery of test, both quantitative and qualitative, comparing chocolate consumption to a basket of competitive products revealed an unmistakable answer.

The Tests

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

Association, caution prevented a big break with the past, forcing

Cadbury to experiment with a combination of continuity and change. The process entailed understanding the foundation of the brand, since it was these that would support the new structure”. Out went the caring - and - sharing element, but the family context stayed.

“Cadbury had two pillars, so it made sense to change one”.

Chocolate should be eaten whenever you feel like. It was an impulse item, so why shouldn’t it be sold as one?”. The first of the two commercial focused on functionality, purging the emotional element. Is the storyline, The father watches TV, engrossed, gnawing away of CDM. The children enter, followed by the mother-but, by that time, the father has completed the distinctly un paternal act of devouring the entire bar. The children are shocked, where upon the produces another bar for them-only to eat that up too. Finally, the mother brings another bar out of her bag. The last shot more CDM bars strew around casually.

The second commercial conveyed the same message, depicting four member of a family doing their own thing on a Sunday afternoon, each casually munching away on chocolates. The less than – subtle

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message: eating chocolate’s just an everyday affair, without special occasion or relationship coming into play. Despite their strategic intent, both ads failed on pre – airing tests. Why for stators, children were outraged at the idea of a parent

consuming chocolate, while adults were down right angry at the notion of the father depriving his children of chocolate bar. Just as important, consumer rejected the idea that chocolate-eating could be equated with mechanical activities like combing one’s hair. After all, chocolates were about feelings. There had to be magic, romance, love and emotion. These elements had been ripped away from the advertising. It was sans emotion”.

“Parent Are Different From Adults”

Even as the ad failed, however, they generated a valuable byproduct, in the form of a new insight, into adult behavior. “Using transactional analysis on response, Cadbury’s found that adult as parents behave very differently from adults as adults. People forbid their children from having chips, but gorge themselves. “The implication”:-“The moment the adult was shown in the context of his role as a parent, all his cognitive preconception about the product would come to the fore. He’d think about the reasons why, and the block would automatically come up”. Tap child-ego state within the adult, stimulating desire, spontaneity, and the craving for instant gratification.

The Prescription

The crucial question that Cadbury was confronted with: what strategy should it deploy to rejuvenate COM in a way that would appeal to the child lurking within the adult? To inject a modern flavor into COM, they chose to create a new brand identity, borrowing a leaf from marketing guru David Aaker, who decrees that brand identity should establish a relationship between the brand and the customer by generating value proposition involving functional, emotional, or self-expressive benefits.

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“The Ads Had To Be Linkable”

“The consumer will always tell what his current belief system is, not what it should be Cadbury’s job to mould has habits and behavior in a way that would increase consumption for product and brand”.

“Impulse Drives Chocolate Sales”

One of the tools Cadbury’s used was Jean – Neal Kapferer’s Brand Prism model to examine whether contemporary value systems offered a peg on which the brand could be judge. The study disclosed, interlaid, a distinct shift from collectivism to individualism, with the pre – 1990’s sacrosanct values of filial and family love being overshadowed by the manifestation of a larger need for self –expression. “There was a definite yearning to be free child”. There inlay the opportunity for both unshackling consumption and creating all-new association for CDM.

The Elixir

Having decided to barter the distinctly use selfish values of sharing and caring for the suspiciously self-centered one of self-expression, Cadbury’s people insisted that the rejuvenate be enriched with compensation – and equally enduring – positive values: universal truths, enduring human values, and universal moment of joy. To translate the brief into the commercial, they decide to simply portray occasion of childlike-but not childish-behavior from adults, without explicitly identifying adults as the target customer.

“They left the connection to be made by the customer” “In the process they were able to get viewer involvement and high levels of empathy. Nowhere did they actually say, you’re an adult, you can eat it. Because nobody wants to be told”. Thus it was that, the montage of the child in the man-the old man kicking the football; the pregnant woman carving a chocolate; young girl breaking

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into a spirit; the young man tossing a bar of chocolate at his sweet-heart departing in a bus-was created.

That the consumption had to be liked before it could penetrate the cultural resistance to chocolate consumption by adults was obvious. Taking a contrition stance, Cadbury decided to test the commercial being devised by O&M’s creative team not for the tire battery of likeability, comprehension, credibility and behavior modification – but only for the first two. “If asked upfront, the consumer was hardly likely to consider the dramatically-different idea credible. Nor was there much chance of her announcing an immediate change in behavior”. But why likeability and comprehension? Simple: the first was meant to be the vehicle on which the daring idea-that adults should enjoy chocolate-would ride into the consumer’s psyche. In other words, the commercial was meant to make him smile at first-and only then realize the import once of the message, which is where the comprehension had to be tested. “What was clear in this case wasthat likeability would have to include identification and feeling warmth.”

The Real Taste of Life CampaignThe very first ad in the campaign in 94 was ‘block – Buster’. It depicted the essence of one and a half glass of milk pouring in to a boy Dairy Milk unique glass and half in to a chunk icon shows the glass and a half of full cream milk flowing in to the chunk of dairy milk conveying the deliciousness and taste appeal of the gooey, creamy, smooth chocolate inside the pack that children like. The mnemonic of 1 ½ glass reached to consumer through every magazines, poster, T.V, newspaper.

The second ad was montage of vignettes from everyday lives of young and old which focused on showing a series of emotions. The ad created a being out the child in the man created to bring out the child in the. The old man kicking the football, the pregnant women craving chocolate, young girls breaking into a spirit, the young man tossing a bar chocolate at his sweet heart departing into a bus. The common refrain linking them was the adult in a free child mode – spottiness, impulsive and carefree.

The ad was protested among adult’s trough focus groups. The ad received an overwhelming response. It was high on likeability, evoked a great degree of

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empathy and identification consumers’ response were those me…… “Feel like that…….”. “Every feels like this”……..accessions. Consumers described dairy milk as “… of all ages”“Eat, when ever you feel like it…you do not have to wait for an occasion.”

Dairy Milk had successfully enabled the free child in the consumer subsequent 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 where the comprehension had to be tested. “What was clear in this case was that likeability would have to include identification and feeling warmth.”

The New Campaign

And finally, with the launch of the new colloquial advertising campaign ‘Khaannein Wallon Khaannein Ka Bahana Chahiya featuring MTV VJ Cyrus Broacha, Cadbury India aimed to ‘substantially’ increase penetration level of the chocolate category in the next few years.’

The New campaign is worth noting as it clearly differ from the earlier one in terms of rectifying the consumer perception about chocolate being an up market impulse – driven product. The attempt now is to change the image, to make chocolate eating a regular habit.The current estimated penetration level of the chocolate category is 19% in the urban market. The objective behind tne new communication on Cadbury Dairy Milk is to make the chocolate category more socially and culturally relevant and drive penetration in the process.

The new campaign has been launched in tandem with the old ar@@ Winning ‘Kuch Khass Hai’ campaign and the media strategy is to let the two co – exist towards a common vision “providing a Cadbury in every pocket”.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGYAchieving accuracy in any research requires in depth study regarding the subject. As the prime objective of the project is to know buying behavior of consumers regarding Cadbury with the existing competitors in the market and the impact on Cadbury. The research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed.

Primary data was collected using the following technique

Questionnaire Method

Procedure of research methodology

Target geographic area was Saket and Sangam Vihar. For this geographical area we asked closed ended questions. The period during which questionnaires were filled was two weeks. Finally the collected data and information was analyzed and

compiled to arrive at the conclusion.

Sources of secondary data

Used to obtain information on, Cadbury and its competitor history, current issues, policies, procedures etc, wherever required.

Internet Magazines Newspaper

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Sampling Method

Sample size- 60

Sampling involved selecting units from a population of interest so that by studying the sample we can fairly generalize the results back to the population from which they were chosen. In the present course work, convenience sampling was used and an aggregate sample size was 60.

Sampling procedure-

We have taken simple random sampling.

Data analysis-

The data collected through survey was analyzed with help of simple percentages. Tabular and graphic methods, which included pie charts and bar graphs, were used to analyze data.

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DATA ANALYSIS AND FINDINGS

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DATA ANALYSIS AND FINDINGSData was tabulated manually and was also analyzed manually. Excel was used to make graphs had pie charts.

FINDINGS AND SURVEY

1. Which brand of Chocolate do you prefer?

Cadbury % Nestle %Below 16 yr 14 31% 6 40%16.1-25 yr 18 40% 2 13%Above 25 yr 13 29% 7 47%Total 45 15

75%

25%

Prefer brandcadbury nestle

Below 16 yr 16.1-25yr Above 25 yr02468

101214161820

Brand preffer by dif-ferent age group

cadburynestle

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2. Which sub-brand you have purchased?

Cadbury Below16 16.1-25 Above25 Nestle >16 16.1-25 <25Diary Milk 9 10 8 Kit Kat 2 1 65 Star 1 7 3 Munch 3 0 1Perk 4 1 2 Milky Bar 1 1 0Celebration 0 0 0 Bar-One 0 0 0Temptation 0 o 0 Milk Chocolate o 0 0Total 14 18 13 Total 6 2 7

Diary Milk 5 Star Perk Celebration Temptation0

2

4

6

8

10

12

Below1616.1-25Above25

Kit Kat Munch Milky Bar Bar-One Milk Chocolate0

1

2

3

4

5

6

7

>1616.1-25<25

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3. Rank the sub-brand of chocolate according to your preference?

Cadbury >16 16.1-25 <25 Nestle >16 16.1-25 <25Diary Milk 59 65 52 Kit Kat 26 7 335 Star 45 56 38 Munch 24 5 22Perk 51 50 43 Milky Bar 18 6 19Celebration 32 48 33 Bar-One 14 2 14Temptation 18 50 28 Milk

Chocolate8 6 13

Diary Milk 5 Star Perk Celebration Temptation0

10

20

30

40

50

60

70

>1616.1-25<25

Kit Kat Munch Milky Bar Bar-One Milk Chocolate0

5

10

15

20

25

30

35

>1616.1-25<25

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4. How much importance do you give to the following factors when you purchase a chocolate?

(Below 16)

Factors Very Important

Important Normal Least Important

None

Flavor/taste 13 6 1 0 0Price 5 10 5 0 0Quality 8 9 3 0 0Packaging 5 12 4 1 0Brand 6 9 2 3 0Quantity 2 11 6 1 0

Flavor/taste Price Quality Packaging Brand0

2

4

6

8

10

12

14

Very ImportantImportantNormalLeast ImportantNone

(Between 16.1 to 25)



None


35

Flavor/taste Price Quality Packaging Brand02468

1012141618


(Above 25)



None


Flavor/taste

Price Quality Packaging Brand02468

10121416


5. At the time of purchasing chocolate, do you recall advertisement?

36

YES 34NO 26

YES57%

NO43%

Number of customer recall adver-tisement

Factors

More Effect

Effect Somewhat

effect

Not

Effect

Attractive Display inside store 7 11 2 0

Advertisement 6 10 4 0

Suggestion from friends and relatives 5 8 7 0

Brand Ambassadors 5 6 1 8

Ingredients 4 7 8 1

6. Please tick the following sources of information in term of effect, when you purchase a chocolate? (Below 16)

37

048

12

More EffectEffectSomewhatNot

Factors

More Effect

Effect Somewhat

effect

Not

Effect





Ingredients 10 4 4 2

(Between 16.1 to 25)

048

12


Factors

More Effect

Effect Somewhat

effect

Not

Effect

38





Ingredients 7 11 1 1

(Above 25)

Attractive

Display

insid

e store

Adverti

semen

t

Sugg

estion fr

om frien

ds and re

lative

s

Brand Ambass

adors

0

4

8

12


7. Which form of chocolate do you like?

Hard 15Nutties 19Crunchy 25

39

Chew 1

Hard25%

Nutties32%

Crunchy42%

Chew2%

Forms Of Prefered Choco-late

Below 16 Between 16.1 to 25 Above 25Hard 7 5 3Nutties 4 7 8Crunchy 9 7 9Chew 0 1 0

Hard Nutties Crunchy Chew0123456789

10

Below 16Between 16.1 to 25Above 25

8. What pack do you purchase?

Below 16 Between 16.1 to 25 Above 25Small 11 12 5Big 9 8 12

40

Family Pack 0 0 3

Small Big Family Pack02468

101214


9. Which promotional offers attract most?

Below 16 Between 16.1 to 25 Above 25Free gifts 14 4 8Price offer 6 15 12Any other 0 1 0

Free gifts Price offer Any other02468

10121416


11. Where do you purchase chocolates from?

Option 1 Option 2 Option 3 Option 4Below 16 3 12 3 216 to 25 6 8 3 3Above 25 2 9 6 3

41

Below 16 16 to 25 Above 2502468

101214

Option 1Option 2Option 3Option 4

12. How frequently do you purchase chocolates?

Below 16 16 to 25 Above 25Once in a fortnight 0 1 1Daily 6 11 13Weekly 12 1 1Monthly 2 5 4Quarterly 0 2 1

Once in a fortnight

Daily Weekly Monthly Quarterly02468

101214

Below 1616 to 25Above 25

13. If your preferred brand is not available for repeat purchases then what will you do?

Below 16 Between 16.1 to 25 Above 25Postpone your purchase 2 6 6

42

Switch over to other brand 9 6 11Go to the other shop to search for your preferred brand

9 8 3

CONCLUSION

43

Cadbury is the most preferred brand than other brands in India and Dairy Milk is the most preferred product from Cadbury.

Flavor and packaging are most important factors that affect the buying behavior of customer. 57% of customer recalls advertisement before buying the product. So by our research it is concluded that advertisement affects the buying behavior.

41% people like crunchy and 32% people like nutties chocolate. And most of the people like small packs. Free gift are more attracting for children and price offer schemes attracts middle group more.

Limitation

44

1. Segmentation was based on age group only.

2. As sample size of 60 is small so the buying behavior of whole can’t be appropriately judge.

3. The research was restricted to a small geographical area.

4. Minimum age among respondent was 5 year and maximum 35 years.

5. The study don’t consider occasion of buying chocolate.

45

APPENDIX

QUESTIONNAIRE

NAME-……………………………………………………………………

46

GENDER- MALE FEMALE

AGE- Below 16 16.1 - 25 Above 25

Que1. Do you eat chocolate?Yes No

Que2. Which brand of chocolate do you prefer?

Cadbury Nestle

Que3. Which sub-brand you have purchased?

Cadbury Nestle

Dairy Milk Kit Kat

5Star Munch

Perk Milky Bar

Celebrations Bar-One

Temptation Milk Chocolate

Que4. Rank the sub-brands of chocolates according to your preference?

(5 for most and 1 for least preferred).

47

Cadbury Nestle

Dairy Milk Kit Kat

5Star Munch

Perk Milky Bar

Celebrations Bar-One

Temptation Milk Chocolate

Que5. How much importance do you give to the following factors when you purchase a chocolate?

(Tick in the desired column)



None

Flavor/taste

Price

Quality

Packaging

Brand

Quantity

Que6. At a time of purchasing chocolate, do you recall advertisement?

48

Yes NO

Que7. Please tick the following sources of information in term of effect, when you purchase a chocolate?

Factors More Effect Effect Somewhat

effect

Not

Effect

Attractive Display inside store

Advertisement

Suggestion from friends and relatives

Brand Ambassadors

Ingredients

Que8. Which form of a chocolate do you like?

Hard Nutties Crunchy Chew

Que9. What pack do you purchase?

Small Big Family Pack

Que10. Which promotional offers attract you most?

Free gifts Price Offer Any other (specify) ___________________

Que11. Where do you purchase chocolates from?

Neighborhood shop where chocolates are kept in bottles Neighborhood shop where chocolates are kept in cold storages

49

Neighborhood shop where chocolates are kept in special boxes Malls and convenience store

Que12. How frequently do you purchase chocolates?

Once in a fortnight Daily

Weekly Monthly

Quarterly

Que13. If your preferred brand is not available for repeat purchases then what will you do?

Postpone your purchase

Switch over to other brand

Go to the other shop to search for your preferred brand

Que14. If another brand of the same product appears in the market, will you prefer to stop buying this brand and buy the new brand?

No, not at all I may consider

No, I shall not Can’t say

Thank You

BIBLOGRAPHY1. www. cadbury india.com

50

http://www.cadburyindia.com/

2. www. nestle .in

3. Marketing Management - Philip kotler

51

http://www.nestle.in/

project report on cadbury

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