PROJECT REPORT

On

“ANALYSIS OF CADBURY CHOCOLATE IN THE

MARKET WITH ITS COMPETITORS”

AT

SUBMITTED FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION

TABLE OF CONTENTS

INTRODUCTION

EXECUTIVE SUMMARY

OBJECTIVE OF RESEARCH

RESEARCH METHODOLOGY

ANALYSIS & OBSERVATION

DATA ANALYSIS AND FINDINGS

CONCLUSION

RECOMMENDATIONS

BIBLIOGRAPHY

QUESTIONNAIRE

Declaration by the Candidate

I hereby declare that the research project report titled “ANALYSIS OF

CADBURY CHOCOLATE IN THE MARKET WITH ITS COMPETITORS”

Is the outcome of my own work and same has not been submitted to any

university/ institutions for the award of any degree or any professional

diploma.

Date: ( )

Sign of candidate

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 my sincere gratitude to our Prof. Avnish Tyagi

for his guidance.

Preface

The Cadbury’s India’s number one chocolate is able to share with

their market insights based upon unparallel breath of chocolate

experience.

The merge in 1969 with Schweppes and the subsequent

development of the business have led to Cadbury Schweppes taking

the led in both, the confectionery and soft drink market Intec UK

and becoming a major force in the international market. Cadbury

Schweppes today manufactures product in 60 countries and a trade

in staggering 120.

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

chocolate and confectionery industry. A descriptive research

procedure had been applied to come to the conclusions of the

project. A detailed questionnaire had been prepared and the

responses of the concerned people had been collected for the

analysis. The project later concluded in recommending the market

potential of the chocolate and confectioneries.

EXECUTIVE SUMMARY

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

Rationale of study:

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

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

able to share with their market insights based upon unparalleled

breath of chocolate experience.Cadbury has grown from strength to

strength with new technologies being introduced to make the

Cadbury confectionary business, one of the most efficient in the

world.This report study about market share and different strategy

with its competitors.

Objective:

To analyze the marketing strategies of the company with

To determine the market share of Cadbury .

To demonstrate the marketing strategies of Cadbury India

Ltd.

Importance:

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

research on the Cadbury chocolate and its present

competitors in the market.

2) This report shows the problems associated with the Cadbury

industry in the market as it helps in removing these problems.

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

industry.

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

of confectionary industry.

5) This report helps in knowing market position of different

confectionary industry.

Research Methodology:

The research conducted by Exploratory Research this type of

research is Qualitative and Quantitative. Qualitative refers to the

characters of the data or process by which the data are gathered.

The research process consists of a series of closely related

activities. Why a research study has been undertaken. Why a

research study has been undertaken, how the research problem has

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

formulated, what data has been collected and what particular

method has been adopted and a host of similar other question are

usually answered when we talk of research methodology concerning

a research problem or study.

Sampling:

The data was to be collected only from the Consumers and

Retailers. A questionnaire was prepared and interviewing with

Retailers and Consumers.

A decision has to be taken concerning a sample unit before

selecting the number of samples. It may be geographical as well as

individual..

Size of Sample:

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

finite universe to constitute a sample size. The survey was

conducted of 50 outlets.

Analysis:The data was tabulated manually and was also analyzed manually

excel was used to make graphs and pie chart.

26% of people are interested in eating chocolate and 74%

are not eating.

The Cadbury brand chocolate 75% of people prefer after

that Nestle, Amul and others are take place.

Most of the people buy chocolate from superstore and

after that from retail or movie mall.

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

aware.

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

Cadbury chocolate is very easily available in the market.

Conclusion:

This company project has demonstrated “CADBURY’S MARKETING

AND COMPETITIVE STRATEGIES” that has proved to be extensive

through, and of great benefit to the company in furthering its

competitive advantage.

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

indorse its strong potential to continue to do well.

Recommendations :

Maintain dominance in chocolate, confectionery and market

leadership in blown drinks.

New channels such as gifting, child connectivity and value for

money offering to be the key growth drives.

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

Achieve the goal of best manufacturing location in Cadbury

Schweppes world for Dairy Milk and Éclairs.

One new major product launch every year.

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 with their market insights based upon unparalleled

breath of chocolate experience.

Cadbury has grown from strength to strength with new technologies

being introduced to make the Cadbury confectionary business, one

of the most efficient in the world. The merge in 1969 with

Schweppes and the subsequent development of the business have

led to Cadbury Schweppes taking the led in both, the confectionary

and soft drink market Intec UK and becoming a major force in the

international market. Cadbury Schweppes today manufactures

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

story is a fascinating story of a family business that grew in one of

the biggest, most loved chocolate brand in the world. A story that

you will remember as the story of “The taste of life”.

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

chocolate and confectionery industry. A descriptive research

procedure had been applied to come to the conclusions of the

project. A detailed questionnaire had been prepared and the

responses of the concerned people had been collected for the

analysis. The project later concluded in recommending the market

potential of the chocolate and confectioneries

The legend called Cadbury

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

John Cadbury, in Bull street Birmingham was to be the foundation of

Cadbury Limited, now one of the world’s largest producer of

chocolate.

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

and John Cadbury had become a manufacturer of drinking chocolate

and cocoa. This was the start of Cadbury manufacturing business as

it is known today. A larger factory in Bridge Street Birmingham was

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

and the business became Cadbury Brother of Birmingham.

1861 – John Cadbury resigned his business and handed over to his

sons, Richard, 25 and George, 21 who after 5 difficult years almost

shut down the business to take up other vocation. Fortunately for

generation of chocolate lovers, they didn’t.

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

a process for pressing the cocoa butter from the coca beans. This

not only enabled Cadbury Brothers to produce pure coca essence,

but the plentiful supply of coca butter remaining was also used to

make new kind of eating chocolate. The essence was advertised as

‘Absolutely pure, therefore best’.

1879 – Business prospered from this time and Cadbury Brother

outgrew the Bridge Street factory, moving in 1879 to a ‘Greenfield’

site some miles from the center of Birmingham which came to call

Bourneville. The opening of the Cadbury factory in a garden also

heralded a new era in industrial relations and employee welfare

with

joint consultation being just one of the introduced by the pioneering

Cadbury Brothers.

1899 – In this year the business private limited company – Cadbury

Brothers Limited. Progress since the start of the century through the

inter – war years onward ahs been rapid. Chocolate has moved

being a “luxury” item to well within the financial reach of everyone.

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

story being Cadbury’s Dairy Milk chocolate launched in 1905, today

Britain’s favorite moduled chocolate bar.

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

confectionary market, employing the most advanced processing

technology and management information and control techniques.

The company is the confectionary division of Cadbury Schweppes

plc which is major force in the confectionary and soft drinks

international market.

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

confectionary with impressive range of famous brands.

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

beginning as generations have worked to produce chocolate with

that very special taste, smoothness and snap, so characteristics of

Cadbury’s chocolate.

Design Development

Milk chocolate for eating was first made by Cadbury in 1897 by

adding milk powder paste to the dark chocolate recipe of cocoa

mass, cocoa butter and sugar. By today’s standards this chocolate

was not particularly good as it was very coarse and dry and was not

sweet or milky enough for public tastes.

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

continental manufactures, not only the French with their fancy

chocolates but also from the Swiss, who were renowned for their

milk chocolate. Led by George Cadbury junior, the Bourneville

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

time and money was spent on research and new plant design to

produce the new chocolate in much large quantities.

A new recipe was formulated fresh milk and new production

processes were developed to produce milk – chocolate not as

merely as good as but better than the imported milk chocolate.

Four years of hard work were invested in the project and in 1905

what was to be Cadbury’s top selling brand was launched. Three

names were considered Jersey Highland Milk and Dairy Maid. Dairy

Maid became Dairy Milk and Cadbury’s Dairy Milk with its unique

flavor and smooth creamy texture was ready to challenge the Swiss

domination of the milk chocolate market.

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

mid twenties Cadbury’s Dairy Milk gained its status as the brand

leader, a position that it has held ever since. Today more than 250

million bars of Cadbury’s Dairy Milk are made every year and sales

reach over 100 million Pound in value.

While advertising and label design g-have changed with fashion and

considerable strides have been made in manufacturing

technologies, the recipe for Cadbury’s Dairy Milk its ‘glass and a half

of full cream milk in every half pound produced’ is still basically the

same as when it was launched.

Cadbury’s Dairy Milk Story

Chocolate has been enjoyed by successive generation since the

manufacturing process was developed in the Victorian Times. Good

chocolatiers is an art form depending on recipe traditions, which

have grown over the years. Chocolatiers have use their skills to

make balanced recipe in which all the ingredients combine to

produced chocolate with all the characteristics that enable full

delicious taste to be enjoyed by the consumers.

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

considered quite unpalatable. It was the introduction of the Van

Houten cocoa press from Holland that was the major break through

in the chocolate production as it provided extra cocoa butter

needed to make a smooth glossy chocolate.

Cadbury’s Milk Tray – 1915

Milk Tray has maintained its popularity in the changing world since

the milk chocolate assortment made with the famous Cadbury’s

Dairy Milk chocolate was first introduced in 1915.

The name ‘tray’ derived from the way in which the original

assortment was delivered to the shops. Originally Milk Tray was

packed in five and as half pound boxes, arranged on trays from

which it was sold loose 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.

PRODUCT PROFILE

CHOCOLATE & CONFECTIONARY

Dairy Milk

Fruit & Nut

Picnic

Perk

Gems

Éclairs

Nutties

Temptation

FOOD DRINKS

Ovaltine

Drinking chocolate

Bournvita

Horlicks

Cadbury’s Fruit & Nut

New Launch

Cadbury target kids with Milk Treat: - It is a product that talks

directly to the target consumer. The product benefits have been

defined as “The goodness of milk to

the fun of chocolate”. it combines

both good health, multinational

value of milk along with the values

of fun and excitement. The kinds

formally associate with Cadbury

chocolate offering.

Temptation :- It is aimed at the niche “international chocolate “

segment of the chocolate market a segment how upgrade from

brands such as Cadbury’s to premium

international offering such as

Tolerance, Lindit and Hersheys.

Roughly 5%of the total domestic

consumption expected to grow to

some 10%. This segment is too good

to miss out on. The

Previous

Cadbury’s range available in India did

not offer consumer an option to

upgrade to international chocolate

within the Cadbury’s fold. Temptation

is an attempt to lug niche, priced Rs.

30.

The Cadbury StoryCadbury’s success story

In 1984, John Cadbury founded U.K. company with one aim:- to

create the highest quality chocolate. By1969, when Cadbury

merged with the soft drink giant. Schweppes, Cadbury brands were

already famous all around world.

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

chocolate confectionary brands, Cadbury dominated markets as far

as the U.K. and Australia that’s why Cadbury have been dubbed

“The world’s master chocolate makers”.

The secret of Cadbury’s success

What is the secret of Cadbury’s continuing success

first there’s the careful selection of the finest coca

beans from west Africa, as well as tasty hazel nuts

from Turkey and the fine sheet and choicest natural

ingredient available to us anywhere.Finally there’s

skillful marketing Cadbury always takes extreme

care in selecting and marketing the right range of

product in every cause.

The right product, the right partners, the right marketing, the

promotional back up and the right employees. These are the

ingredients in Cadbury’s latest recipes for success.

Right from the stand Cadbury Dairy Milk Chocolate success has

been based on 4 factors:-

Quality

Value for money

Advertising

Amul Chocolates

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

Composition:

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

Product Specification:

Meets all requirements under the PFA for boiled sugar confectionary.

Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview

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

largest food products marketing organisation. It is a state level apex

body of milk cooperatives in Gujarat which aims to provide

remunerative returns to the farmers and also serve the interest of

consumers by providing quality products which are good value for

money.

Members: 12 district cooperative milk producers' Union

No. of Producer Members:

2.36 million

No. of Village Societies: 11,333

Total Milk handling capacity:

6.9 million litres per day

Milk collection (Total - 2003-04):

1.81 billion litres

Milk collection (Daily Average 2003-04):

4.97 million litres

Milk Drying Capacity: 511 metric Tons per day

Cattlefeed manufacturing Capacity:

2340 Mts per day

Amul Brands

Quality is the essential ingredient in all of our brands and the reason why millions of people choose Nestlé products every day.

Sales Turnover Rs (million) US $ (in million)

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616

Our consumers have come to trust in Nestlé’s commitment to excellence and turn to Nestlé brands to maintain nutritional balance in a fast paced world.

Baby Foods:

Nutrition that suits the needs of your baby.

Dairy Products:

From shelf-stable solutions to chilled dairy.

Breakfast Cereals:

Start your day out healthy with Nestlé BreakfastCereals.

Ice Cream:

Discover the world of delicious Nestlé Ice Cream.

Chocolate & Confectionery

Delighting the senses with a range of tastes and textures.

Prepared Foods:

Preparing well-balanced meals is a snap with Nestlé.

Beverages:

Drink to a healthy, active life with Nestlé beverages.

Food Services :

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

Bottled Water:

Capturing nature in its purest form.

Petcare :

Nutrition, health and wellness for your pet.

NESTLE INDIA

THE NESTLE India stock has been bubbling with activity in an

otherwise listless equity market.

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

May 2000 and now commands a valuation 39 times the expected

earnings for 2000. This is steep by FMCG standards.

The recent surge in the stock is partly driven by the announcement

by the parent, Nestle SA, that it would use the creeping acquisition

route to mop up another five per cent in Nestle India through open-

market purchases. But improving the stock's valuation can also be

traced to good financial performance in a market starved of healthy

earnings numbers.

On a comeback trail

The resumption of its coffee exports to Russia and a favourable

input price environment pepped up Nestle India's net profit growth

to 28 per cent in the first nine months of 2000. Sales growth in this

period was 10.4 per cent, with domestic sales rising 9.8 per cent

and export sales 13.8 per cent. In reality, the growth in sustainable

net profits was higher than reported as the company took an

additional one-time charge of Rs 14.70 crore in the first nine months

of 2000 for provisions against contingencies.

Unusually, low input prices may have contributed considerably to

margin expansion. Continuing surpluses in global production have

pushed both coffee and cocoa prices (the two key inputs for Nestle

India, apart from milk) to historic lows in 2000. While coffee prices

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

bounced off their lowest levels in three decades.

With global agencies forecasting high carry-in stocks for the next

season, the soft input price advantage could be with Nestle for the

time being. Does this mean Nestle India will sustain its healthy

earnings performance over the next couple of years? This will

depend on its ability to revive sales growth in its domestic product

categories.

Greener pastures at home

Nestle's 10.4 per cent sales growth in the first nine months of 2000

is partly magnified by the low base of comparison. The cessation of

coffee exports to Russia due to the economic crisis there, led to a

38 per cent drop in export sales (and a 5 per cent drop in net sales)

for Nestle India in 1999.

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

remains poor because realisations have fallen in line with green

coffee prices. Since realisations in the export market are unlikely to

look up in the next year, Nestle will continue to look to its domestic

product portfolio to sustain earnings growth.

In recent times, as with other FMCG companies, Nestle India's

topline growth in the domestic market was unimpressive, at around

8 per cent 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.

Nestle's Kitkat has actually ceded market share to Cadbury's Perk in

the past year. The market for specialised food products such as

soups and noodles holds healthy growth potential. But the market is

relatively small and players such as International Bestfoods,

Unilever and Dabur are vying with a host of imported brands and

regional players for a share of the pie.

Stretching existing businesses

Over the past year, Nestle has devoted considerable attention to

the expansion of its domestic businesses. It has drawn brands such

as Coffeemate coffee creamer, Frappe cold coffee and Nescafe Gold

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

beverages range. Incidentally, the inputs from the parent do not

come free. Nestle India paid its parent a Rs 53.69-crore royalty 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 realisations). Considering that Nestle has reduced

both coffee and chocolate prices over the past year and held other

product prices, this indicates volume growth of a higher order.

A plan to expand the network of Nescafe vending machines and

establish coffee bars to encourage out-of-home consumption of

coffee is also on the cards.

Testing the waters

Over the past year, the company has also announced forays into

three new areas -- liquid milk, bottled water and biscuits. The foray

into biscuits is through the joint venture Excelsia Foods, so the

contribution to Nestle's revenues may at best be in the form of

dividends for now.

Liquid milk and bottled water are businesses that hold immense

growth potential. Larger players can expand through higher

penetration levels and at the expense of the unorganised segment.

However, both these segments are quite crowded with feature

listed and unlisted players which have considerable financial

muscle.

In the liquid milk segment, Nestle will be up against the formidable

Amul, apart from a host of private dairies with established clientele.

In the bottled water market, the market leader, Bisleri (of Parle

Products), has had to contend with competition from scores of me-

too brands, apart from Pepsi's Aquafina, Coca-Cola's Kinley. Going

forward, competition is only likely to increase, with Britannia

planning to launch more bottled water brands from its foreign

collaborator Danone's portfolio (Evian, one of the largest bottled

water brands, is already on shop shelves).

Striving for niches

Nestle India has already launched two bottled water brands in the

domestic market -- the internationally renowned Perrier, followed

recently by its sparkling mineral water brand, San Pellegrino

(reputed to be sourced from the Swiss Alps).

However, both products are for upmarket consumers. The premium

pricing suggests that the products will remain niche products with

relatively small target markets. Pure Life, the mass market bottled

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

failure of Nestle's bottled water foray.

Nestle India has also shied away from the mass market for liquid

milk in plastic pouches, and instead restricted itself to ultra heat

treated (UHT) milk in Tetrapacks. The product is priced at a

substantial premium to the other local brands.

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

competitive markets and investments in the new businesses are

likely to be high over the next few years.

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

available from the stable businesses (such as weaning cereals and

coffee) and the financial might of the parent, Nestle SA, will stand

Nestle India in good stead.

The royalty to the parent should ensure that Nestle India continues

to enjoy ungrudging access to the parent's product portfolio. In

many respects, in India Nestle is pitted against its key adversaries

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

the global level, both companies are considerably smaller than

Nestle SA.

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.

OBJECTIVE OF THE PROJECT

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

marketing strategies of Cadbury India Ltd. To analyze the marketing

strategies of the company with its competitor in the market.

Following are the some of the main objective of my report are as

under:

Comparative study of Cadbury chocolate in the market with

its main competitors.

To analyze the marketing strategy of the Cadbury India Ltd.

To study about the customer taste and preference in the

confectionary item.

To find out the market share of the different competitors in

the chocolate industry.

And also to find out the satisfaction level of customer about

their product.

.

IMPORTANCE OF THE STUDY

This report gives the help to the marketers for analyzing the

different competitors in the chocolate industry. These are the

following some importance of this research report as under:

6) This report is useful for the researchers who are willing to do

research on the Cadbury chocolate and its present

competitors in the market.

7) This report shows the problems associated with the Cadbury

industry in the market as it helps in removing these problems.

8) This report can be useful as a secondary data for chocolate

industry.

9) This report helps in knowing the current and future scenario

of confectionary industry.

10) This report helps in knowing market position of different

confectionary industry..

RESEARCH METHODOLOGY

Achieving accuracy in any research requires in depth study

regarding the subject. As the prime objective of the project is to

compare Cadbury with the existing competitors in the market and

the impact of Nestle on Cadbury, the research methodology

adopted is basically based on primary data via which the most

recent and accurate piece of first hand information could be

collected. Secondary data has been used to support primary data

wherever needed.

Primary data was collected using the following techniques

Questionnaire Method

Direct Interview Method and

Observation Method

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

interview method, where a face to face formal interview was taken.

Lastly observation method has been continuous with the

questionnaire method, as one continuously observes the

surrounding environment he works in.

Procedure of research methodology

# Target geographic area was Delhi. NCR.

# To this geographical area questionnaire was given, the

questionnaire was a combination of both open ended and closed

ended questions.

# The date during which questionnaires were filled was between six

week.

# Some dealers were also interviewed to know their prospective.

Interviews with the honour of retailer of Cadbury were also

conducted.

# Finally the collected data and information was analysed and

compiled to arrive at the conclusion and recommendations given.

Sources of secondary data

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

current issues, policies, procedures etc, wherever required.

# Internet

# Magazines

# Newspaper

ORGANIZATIONAL STRUCTURE

MANAGING DIRECTOR

GENERAL MANAGER

VICE PRESIDENT

MARKETING

MANUFACTURING

SALES FINANCE DISTRIBUTION

Cadbury Schweppes

Cadbury Schweppes plc, a global beverage and confectionary giant

with annual sale of Rs 20,000 crores,is the worlds number one non –

cola soft drink company having bottling and partnership operations

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

around the world. Its Hundred Percent subsidiary in India named

Cadbury Schweppes Beverage India (private) Limited (CSBIL)

started operation in March 1995. The first brand was launched was

crush which was later followed by Canada Dry, Schweppes Tonic

Water, Schweppes Bitter Lemon.

CSBIL with its franchise agreement with 19 bottles throughout India

proposes to be a household name. It has a policy for FOBOs

(Franchise owned bottling operations unlike Coke and Pepsi which

prefer COBO,s (Company owned bottling operations). In FOBO the

beverages company only supplies the concentrate and the

marketing support to build brand equity. The other aspects like

machinery, bottling line, land and distribution is the responsibility of

the bottler. As its CEO Mr. Ashok Jain says, “we are the software,

they are the hardware”.

Cadbury’s Market Segment

Market place for any product is comprised of many different

segments of consumers, each with different needs and wants.

Markets segmentation can be defined in a number of ways such as:

Demographic variables (e.g. Consumers 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.

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

fundamental of generic association that had made million of Indians

refer to a bar of a chocolate as a “Cadbury”.

More proof of the chocolate is in the eating: two years into process,

CDM’s market share at 25%, with sale rising by an average 40% per

annum.

The Diagnosis

Today, The Real Taste of Life campaign, which served

Up chocolate in general, and COM in particular, into the

consciousness of adult, has already become a classic of advertising

and marketing. By 1993, Cadbury was desperately seeking growth

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

customers from competitors in this stagnant market wouldn’t help.

They had to find new customers, people who’d never bought

chocolate before. Or, they had to increase consumption levels”. The

obvious solution, in a peculiar predicament. Despite low

penetration, both the brand and the category were displaying

symptoms of age: faltering growth, high recognition, and lack of

excitement. The market research revealed the cause of the graying:

chocolate wasn’t a snack in India. “In mature markets, chocolate

straddle a continuum, from boutique product – packaged raw

indulgence – to a casual food”. So, Cadbury whipped up a growth

solution that involved associating the brand with snacking and

functionally, which inevitably go together with high consumption

rates in the Western markets.

The next step: identify the barriers preventing consumers from

chocolate as a snack. A battery of test, both quantitative and

qualitative, comparing chocolate consumption to a basket of

competitive products revealed an unmistakable answer.

The Tests

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

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

Cadbury to experiment with a combination of continuity and

change. The process entailed understanding the foundation of the

brand, since it was these that would support the new structure”.

Out went the caring - and - sharing element, but the family context

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

Chocolate should be eaten whenever you feel like. It was an impulse

item, so why shouldn’t it be sold as one?”. The first of the two

commercial focused on functionality, purging the emotional

element.

Is the storyline, The father watches TV, engrossed, gnawing away at

a bar of CDM. The children enter, followed by the mother-but, by

that time, the father has completed the distinctly un paternal act of

devouring the entire bar. The children are shocked, where upon the

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

mother brings another bar out of her bag. The last shot more CDM

bars strew around casually.

The second commercial conveyed the same message, depicting

four member of a family doing their own thing on a Sunday

afternoon, each casually munching away on chocolates. The less

than – subtle message: eating chocolate’s just an everyday affair,

without special occasion or relationship coming into play. Despite

their strategic intent, both ads failed on pre – airing tests.

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

consuming chocolate, while adults were down right angry at the

notion of the father depriving his children of chocolate bar. Just as

important, consumer rejected the idea that chocolate-eating could

be equated with mechanical activities like combing one’s hair. After

all, chocolates were about feelings. There had to be magic,

romance, love and emotion. These elements had been ripped away

from the advertising. It was sans emotion”.

“Parent Are Different From Adults”

Even as the ad failed, however, they generated a valuable

byproduct, in the form of a new insight, into adult behavior. “Using

transactional analysis on response, Cadbury’s found that adult as

parents behave very differently from adults as adults. People forbid

their children from having chips, but gorge themselves. “The

implication”:-

“The moment the adult was shown in the context of his role as a

parent, all his cognitive preconception about the product would

come to the fore. He’d think about the reasons why, and the block

would automatically come up”. Tap child-ego state within the

adult, stimulating desire, spontaneity, and the craving for

instant gratification.

The Prescription

The crucial question that Cadbury was confronted with: what

strategy should it deploy to rejuvenate COM in a way that would

appeal to the child lurking within the adult? To inject a modern

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

borrowing a leaf from marketing guru David Aaker, who decrees

that brand identity should establish a relationship between the

brand and the customer by generating value proposition involving

functional, emotional, or self-expressive benefits.

“The Ads Had To Be Linkable”

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

what it should be Cadbury’s job to mould has habits and behavior in

a way that would increase consumption for product and brand”.

“Impulse Drives Chocolate Sales”

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

Prism model to examine whether contemporary value systems

offered a peg on which the brand could be judge. The study

disclosed, interlaid, a distinct shift from collectivism to

individualism, with the pre – 1990’s sacrosanct values of filial and

family love being overshadowed by the manifestation of a larger

need for self – expression. “There was a definite yearning to be free

child”. Therein lay the opportunity for both unshackling

consumption and creating all-new association for CDM.

The Elixir

Having decided to barter the distinctly use selfish values of sharing

and caring for the suspiciously self-centered one of self-expression,

Cadbury’s people insisted that the rejuvenate be enriched with

compensation – and equally enduring – positive values: universal

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

translate the brief into the commercial, they decide to simply

portray occasion of childlike-but not childish-behavior from adults,

without explicitly identifying adults as the target customer.

“They left the connection to be made by the customer” “In the

process they were able to get viewer involvement and high levels of

empathy. Nowhere did they actually say, you’re an adult, you can

eat it. Because nobody wants to be told”. Thus it was that, the

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

the pregnant woman carving a chocolate; young girl breaking into a

spirit; the young man tossing a bar of chocolate at his sweet-heart

departing in a bus-was created.

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

cultural resistance to chocolate consumption by adults was obvious.

Taking a contrition stance, Cadbury 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 was that likeability would have to include identification and

feeling warmth.”

The Real Taste of Life Campaign

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

depicted the essence of one and a half glass of milk pouring in to a

boy Dairy Milk unique glass and half in to a chunk icon shows the

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

milk conveying the deliciousness and taste appeal of the gooey,

creamy, smooth chocolate inside the pack that children like. The

mnemonic of 1 ½ glass reached to consumer through every

magazines, poster, T.V, newspaper.

The second ad was montage of vignettes from every day lives of

young and old which focused on showing a series of emotions. The

ad created a being out the child in the man created to bring out the

child in the. The old man kicking the football, the pregnant women

craving chocolate, young girls breaking into a spirit, the young man

tossing a bar chocolate at his sweet heart departing into a bus. The

common refrain linking them was the adult in a free child mode –

spottiness, impulsive and carefree.

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

received an overwhelming response. It was high on likeability,

evoked a great degree of empathy and identification consumers’

response

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

accessions. Consumers described dairy milk as “… of all ages”

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

occasion.”

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”.

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

Chocolate Market Share

The Indian chocolate market is getting bigger and better. While on

one hand, the premium segment (composing imported varieties) is

opening up on the other, companies like Cadbury India are

launching indigenous product made to international standards. Of

the 20,000 tones chocolate market worth about

Rs. 400 crore, Cadbury account for about 70% followed by Nestle,

with a share of around 20%. Amul has about 5% of the market, with

minor player taking the rest. The battle, though, is between

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

putting up a tough fight.

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

substitutes, thanks to the initiative taken by the Cadbury India

during early nineties. The market itself has become more broad

based, in the sense adults are an important target segment now.

The reposting of Cadbury’s Dairy Milk in 1994 as the ‘real taste of

life (through the Slice of Life and Cricket commercial by Ogilvy and

Mather) grew the entire milk chocolate by 20%, and gave the

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

Nutties, Butterscotch & Tiffns – a new lease of life. In other words, it

facilitated the repositioning of Cadbury’s sub brands in the basket.

Some o the strategic clicked, while other did not quite take off.

The company is pushing the gifting segment, through occasion

linked gifts. Chocolates contribute to 64% of Cadbury’s turnover.

Confectionary sales accounting for 12% of turnover is contributed

largely by Éclairs. The company attempted expanding its

confectionary product portfolio, with launch of sugar based

confectionary goodly and fruits, without much success. Cadbury

also has a strong brand vita in the malted health drink category

which account for 24% of turnover.

There exists an even larger unorganized market in the

confectionary segment. Cadbury has 4% of the market share in this

segment. Leading national players are nutrine, Pary’s Ravalgoan,

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

and Perfetti have aggressively expanded their presence in the

country in the last few years.

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

White drinks accounts for almost two third market of the 82,000 for

market south and east are large market for drinks, accounting for

largest proportion of all India’s sale. Cadbury’s Bourn Vita is leader

in the down drink coca based segment in the white drink segment

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

Smith Kline brand Boost, Maltova and Viva Cadbury bold 14%

market share in food drinks segment.

Despite tough market condition and increased competition Cadbury

managed to record a double digit (11%) top line growth in 2000.

The company achieved a volume growth of 5.2%. This was achieved

through innovative marketing strategies and focused advertising

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

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

tioter control over working capital over working capital and capital

expenditure enabled the company to improve the profitability.

Company added 8 million new consumers and saw its outlets grow

to 4.5 lakhs and consumer to 60 million.In the food segment,

Britannia is the leader brand with 21% among those who expressed

an opinion saying that they like advertising for the brand Cadbury

was clearly No.2 with 18% to which CDM throw in its weight with

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

Khane Ka Bhanna and the Karwa Cauth, Sports are clear winners.

Tied for the brand place are Amul, Parle and south based Arun Le

Gram with 5% each. Disappointment among bid brands Kissan and

Maggi and Kwality Walls (1%) each.

Changing Product Mix

Contributing to

turnover 1998

Contributing to

turnover 2003

Chocolate 59% 64%

Sugar Confecting 9% 12%

Food Drink 32% 24%

Current Market Share

Chocolate 69.2%

Sugar Confectionary 4.0%

Food Drink 14.2%

Expanding Distribution Reach

2001 + Distribution

450000 Retail Outlet

60 Million Consumers

SWOT ANALYSIS

Strength

1.Very strong brand equity in India.

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

penetration – 2100 distributors; 450,000 retailers, 60 mid

urban (22%) customers.

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

(14% - leader in brown segment).

3. Low cost of production due to economic of scale. That

means higher profits and / or more competitioners. Better

market penetration.

4. Second best manufacturing location throughout Cadbury

Schweppes.

Weakness

1. Poor technology in India compared to current international

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

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

range totally wising in India.

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

imports rush in.

Opportunities

1. Tremendous scope for per capita consumption (160 gms of

8 – 10 kg)

2. Increasing per capita national income resulting in higher

disposable income.

3. Growing middle class and growing urban population.

4. Increasing gifts cultures.

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

6. Increasing departmental stores concept – impulse @ at

cash counters.

7. Globalisation: optimal use of global Cadbury Schweppes.

Threats

a] Major :-

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

b] Minor :-

Globalization will being in better brands for upper end of the

market (Liest, Monarch, Godiva, etc…).

PEST ANALYSIS

Will lose market share with globalization (a la Maruti) but will

remain brand leader.

P: since the budget range is decontrolled, no political effects are

envisaged.

E: 1) increasing per capita income resulting in higher

disposable income

2) Growing middle class/urban population – increase in

demand

3) Low cost of production – better penetration

S: 1) Per capita consumption expected to increase – fashion

2) Increasing gifts culture – increase in demand

3) Lower cholesterol than “mithais” (sweet meat) –

substitute demand

T: Will have to reinforce technology to international levels

once India is a “free” economy

5 P’S OF MARKETING

PRODUCT

Satisfaction suffices. But delight dazzles the average company

will compete for customer by conforming to her expectation

consistently. But the winner will surpass them by constantly

exceeding her expectation, delivering to her door step additional

benefits which she would never have imagined possible. Cadbury’s

offer such product. The wide variety products offered by the

company include:

I. Chocolate & Confectionary

1) Dairy Milk

2) Fruit & Nut

3) 5 Star

4) Break

5) Perk

6) Gems

7) Eclairs

8) Nutties

9) Temptation

10) Milk Treat

II. Beverages

III. Food Drinks

1) Bournvita

2) Drinking chocolate

3) Cocoa

PRICING

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

blindly lowering prices and relying on this strategy alone to increase

sales dramatically. The strategy used by Cadbury’s is for matching

the value that customer pays to buy the product with the

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

Cadbury’s has launched various products which cater to all

customer segments. So every customer segment has different price

expectation from the product. Therefore maximizing the returns

involves identifying right price level for each segment, and then

progressively moving through them.

Dairy Milk Rs. 15

Perk Rs. 10

5 Star Rs. 10

Friut and Nut Rs. 22

Gems Rs. 10

Break Rs. 5

Nutties Rs. 18

Bournvita (500 gm) Rs. 104

Drinking chocolate Rs. 50

PHYSICAL DISTRIBUTION:- “PLACE”

BRAND ISN’T THE ONLY ANY MORE. Marketers and finance

manager need a new term to evaluate their business:

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

but once built, distribution equity is much together to erode.

The fundamental axiom of Indian consumer market is this:

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

hottest strategies on the block, swamp prime television with best

Ads, but the end of it all, you would be know of selling your

products. The cardinal task before the Indian market is managing is

to shoe-horn its product on retail shelves. Buyers are paying for

distribution equity not brand equity and market shares.

Why does the company need distribution equity more anything in

India? With technology and competitive pressure slash in it is

becoming increasing difficult

for marketers to retain a

unique product

differentiation for ling period.

In a product and price parity

situation, the brand that sells

more is the one that reaches

the highest number of

customers.

India – 1 billion people, 155 million household has over 4 million

retail outlets in 5351 urban markets and 552725 villages, spread

cross 3.28 million sq. km. television has already primed and

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

the consumer ahead of competition will give a hard – to – overtake

lead. But getting their means managing wildly different terrains-

climate, language, value system, life style, transport and

communication network. And your brand equity isn’t going to help

when it comes to tackling these issues.

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

agents & distribution stockiest. This network of distribution can

either contact wholesalers and which in turn retailers or the

distributors can contact to the retailers directly.

Once the stock product reaches retailers, the prospective customers

can have access to the product.

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

Cadbury’s distribution network has expanded from 1990 distributors

last year to 2100 distributors and 4,50,000 retailers. Beside use of

TI tom improves logistics, Cadbury is also attempting to improve the

distribution quality. To address the issue of product stability, it has

installed visi colors at several outlets. This helps in maintaining

consumption in summer when sales usually drops due to the fact

that the heal effects product quality and thereby off takes.

Looking at the low penetration of the chocolate, a distribution

expansion would itself being incremental volume. The other reason

is arch rival Nestle reaches more than a million retailers.

This increase in distribution is going to be accompanied by

reduction in channel costs. Cadbury’s marketing costs, at 18% of

total costs, is much higher than Nestlé’s 12% or even pure sugar

confectionery major Parry’s 11%. The company is looking to reduce

this parity level. At Cadbury, they believe that selling confectionery

is it like selling soft drinks.

PROMOTION

If an advertisement is to communicate effectively, the receiver must

at least half want it to, and be prepared too take step toward the

sender. Effective advertising is rarely hectoring or loudly explicit….

It often both attracts and generates arm feelings. More often than

not, a successful campaign has a stronger element of the

unexpected a quality that good advertising shares with much

worthwhile literature.

To penetrate into the inner recesses of her memory, communication

must first ensure exposure, grab her attention evoke her

comprehension, grab her acceptance and then extract retention

competing with thousands of other units of communication trying to

do the same.

Finding showed that the adults felt too conscious to be seen

consuming a product actually meant for children. The strategic

response address the emotional appeal of the band to the child

within the adult. Naturally, that produced just the value vacuum

that Cadbury was looking to fill. Thereafter it was the job of the

advertising to communicate customer the wonderful feeling that he

could experience by re-discoursing the careful, unself conscious,

pleasure – seeking child within himself – a graft these feeling onto

the Ad campaign like “Khane Walon Ko Khane Ka Bahana

Chahiye” for CMD and “Thodi Si Pet Pooja – Kabhi Bhi Kahin

Bhi” for Perk have been sure shot winner with the audience.

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

Share” the communication resolves around the reluctance of a

person who’s got their hand on a bar of temptation to let anyone

else to have a bite. As well as outdoor and radio ads, ad agency

contract has created communication for cinemas and even ATM

machines for the brand.

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

customer insert his ATM card. It tells the customer that this would

be good time to get out of her temptation since he/she is bound to

be alone. Something familiar is planned for phone-book as well. In

cinemas, Cadbury has a message on-screen just before the lights

are dimmed to give them a chance to get their temptations. There

will also be after dinner sampling in restaurants – to begin with, 30

catteries in Mumbai have been selected.

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

the Picnic bar, which has faced problems with its taste, because of

the peanut it contains. Milk treat has also been launched in a

module bar form, just in time of Diwali gifting market. Éclairs has

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

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

customers.

Ad spend in 2000 was about 14% of sales and the management said

that plans to maintain as spend at this level in the current year also.

Ad since any discussion today would be incomplete without mention

‘e’ word, the management plans to tap this new channel of

marketing. Beside three company website (i.e.

www.cadburyindia .com, wwww.bourvita.com, www.cadburygift.com

that the company has launched, it had also entered into various

marketing relationship with other portals, specially targeted during

festivals and events such as Valentines day, etc….

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

improving the newer products that haven’t taken off, supported

with high ad – spends that Cadbury hopes will see it emerges

stronger after the current slowdown, as well as expand the

market.

POSITIONING

In the 1970s consumers were ready to pay “more for more”, and

luxury goods flourished. In the 1980s, consumers began to demand

“more for same”, and the discounting era grew strong. Today’s

consumer demanding “more for less”, and the winner will be that

super value marketers…. Some of today’s most successful

companies recognize those customers are more educated and able

to recognize true customer value…

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

defines that company in the mind of the consumer. It is more

efficient to market one successful concept to one large group of

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

repositioning is a must when customer attitude have changed and

product have strayed away from the consumer’s long standing

perception of the… Cadbury’s is an anchor in sea of confectionary

products. As a variety of competitive claims assails her senses,

today customer uses complicated decision making process to

assess the alternative before making a purchase. Since Cadbury’s is

more clearly associated with a particular set of attributes in terms

of benefits and prices, the quicker becomes her search process.

Positioning of individual product:

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

company for advertising this product life. ‘Real taste of Life’,

itself defines the positioning of the product. The chocolate is

meant for all age groups. It symbolizes fun, enjoyment, good

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

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

star was positioned on an emotional platform in India during

the late 1980s. Symbolizing togetherness, 5 star was

originally targeted at teenagers. In June 1994, the company

reworked the strategy for 5 star to make it a source of energy.

In fact, before the launch of Perk, 5 star’s energy bar

positioning made it a snacking chocolate.

3. Éclairs: competing in the chewable toffees segment. Éclairs

was re-launched during the mid-nineties with a new name,

Dairy Milk Éclairs.

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

proposition for Cadbury. Targeted at children under 12 years

with ‘Gems Bond’ advertising. Cadbury decided to too

teenagers with the ‘Smart Very Smart’ campaign. But now,

the company is retargeting children with its animated

commercial. “Gems are the best brand to speak to children.

Colorful .

5. chocolate buttons appeal most to children and that is why

Cadbury is re-targeting children.”

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

it. It was targeted as a funky chocolate to add spark to life.

7. Perk: in September, 1995, Cadbury preempted the launch of

Nestlé’s Kit-Kat by rushing a new brand, Perk into the market.

Positioned much further on the functional scale than 5 star,

Perk was meant to be light snack-product for subduing the

first pangs of hunger.

Bournvita: positioned as tasty health drink. While its competitors

concentrated only on health aspect, Bournvita combined the

nutritious value with taste.

IV. Chocolate & Confectionary

1) Dairy Milk

2) Fruit & Nut

3) 5 Star

4) Break

5) Perk

6) Gems

7) Eclairs

8) Nutties

9) Temptation

10) Milk Treat

V. Beverages

VI. Food Drinks

1) Bournvita

2) Drinking

chocolate

3) Cocoa

The outlook

The Cadbury management has cut down on its growth target by

setting a 10% average volume target for next 3 years (as against

previous growth) coupled with in factionary price increases, this

could translate into top line growth of 14 –15%. This target also

appears difficult to achieve given the consumer slowdown and the

fact that the company’s consumer slow down and the fact that

company is dependent on a single category chocolates to drive

growth. Effect it expanding confection any portfolio have also not

yielded desired results. The management has declared its intention

to focus only in Éclairs (which forms a major position of its 4% share

in the confectionary segment) for the time being in this category.

In chocolates too ones remain on the 2-3 key brands as CDM, perk

in E claims which have supported growth in the past. While new

launched such as milk @ and Perk slims have been doing will, the

management expects that dairy milk would continue to be the

central driving force in Cadbury’s growth and that all other brands

would remain peripheral to this central brand.

POSITION OF THE VARIOUS BRANDS IN THE MARKET HAS BEEN LISTED

BELOW

Cadburys brands

Positioning Nestle’s brands

Positioning

Cadbury Dairy Milk

Fruit n Nut

Creamy bar

Roast Almond

Crackle

Bournvita

“The Real Taste of Life”

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

Classic Milk Chocolate

Bar One

Positioned as an affordable enriched milk chocolate

Positioned as Trendy, Cool, any time snack.

5 Star / Perk/Break

Perk – Positioned as Snacking consumption “Thodi si Pet Pooja”

5 Star Energy bar Reach for the Stars.

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

DATA ANALYSIS AND FINDINGS

Data was tabulated manually and was also analyzed manually.

Excel was used to make graphs had pie charts.

Main technique used were:

Modal value was used to analyze the questions, which has 2 or

more choices as their answers. Simple average were used to get

answer to questions

26% of people are interested in eating chocolate and 74%

are not eating.

The Cadbury brand chocolate 75% of people prefer after

that Nestle, Amul and others are take place.

Most of the people buy chocolate from superstore and

after that from retail or movie mall.

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

aware.

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

Cadbury chocolate is very easily available in the market.

FINDINGS AND SURVEY

1. Do you eat chocolates?

2.Which brand of chocolates do you use?

3.Where do you buy chocolates from?

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

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

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

CONCLUSION

This company project has demonstrated “CADBURY CHOCOLATE

MARKETING STRATEGY WITH ITS MAIN COMPETITORS” that has

proved to be extensive through, and of great benefit to the

company in furthering its competitive advantage. It also helps the

company for building its future planning and targeting the

customers for more satisfaction through its innovative product.

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

indorse its strong potential to continue to do well and also gives the

ways to maintain its market potential.

RECOMMENDATIONS

Maintain dominance in chocolate, confectionery and market

leadership in blown drinks.

New channels such as gifting, child connectivity and value for

money offering to be the key growth drives.

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

Achieve the goal of best manufacturing location in Cadbury

Schweppes world for Dairy Milk and Éclairs.

One new major product launch every year.

Few Concerns Come To Mind

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

free availability of international brands that you see in the market

today, it is only natural that Cadbury’s market share will move down

from here marinating a 70% market share in a closed environment

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

environment of free imports. And whatever be the anomalies of

taxation or low, the consumer is surely going to have a wider

choice. And it is going to be shared with other brands too in future.

There is additional challenge of Cadbury’s brand just aiming market

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

from.

While there would be new chocolates launch towards the end of the

year, the company has ruled out a real big chocolates launch in the

current year. And it is too early yet to comment on the long term

response to the new launch temptations. They say chocolates are

mostly am impulse purchase. Therefore consumer would prefer

smaller, low cost packs to bigger higher priced ones.

The growth trend of the brands therefore clearly indicates that the

only brand that has grown is the one that gas received tremendous

marketing and advertising support Dairy Milk withdraw support for

any brand and growth loses momentum. In such scenario, for how

long and how many brands can the company continuously support?

FUTURE STRATEGY

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

Cadbury’s share in the impulse segment is 4.8% factor like

changing attitude, higher disposable income, a large youth

population, and low penetration of chocolate (22% of urban

population) point towards a big opportunity of increasing the share

of chocolate in the branded impulse among the costly alternative in

the branded impulse market.

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

the market encouraged by the recent success of its low priced

‘value for many packs’.

Various measures are undertaken in all areas of operation to create

value for the future.

New channel of marketing such as gifting and child connectivity and

low end value for money product for expanding the consumer base

have been identified.

In terms of manufacturing management focus is on optimizing

manufacturing efficiencies and creating a world class manufacturing

location for CDM and Éclairs. The company is today the second best

manufacturing location of Cadbury’s Schweppes in the world.

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

purchase of imports, higher local consumption by entering long

term

contract with farmer and undertaking efforts in expanding local

coca area developing. The initiatives in the terms of development a

long term domestic coca a sourcing base would field maximum

gains when commodity prices start moving up.

Use of it to improve logistic and distribution competitiveness

`Utilizing mass media to create and maintain brands.

Expand the consumer base. The company has added 8

million new consumer in the current year and how has

consumer base of 60 million although the growth in absolute

numbers is lower than targeted, the company has been able

to increase the width of its consumer base through launch of

low priced products.

Improving distribution quality by addressing issues of product

stability by installation of visi coolers at several outlets. This

would be really effective in maintaining consumption in

summer, when sales usually dip due to the fact that the heat

effects product quality and thereby consumption.

The above are some steps being taken internally to improve

future operation and profitability. At the same time the

management is also aware of external changes taking place

in the competitive environment and is taking steps to remain

competitive in the future environment of free imports, lower

barrier to trade and the advent of all global players in to the

country. The management is not unduly concerned about the

huge deluge of imported chocolate brands in the market

place.

It is of the view that size of this imported premium market is

look small to threaten its own volumes or sales in fact, the

company looks at the tree important as an opportunity, where

it could optimally use the global Cadbury Schweppes portfolio.

The company would be able to not only provide greater

variety, but it would also be more cost effective to test market

new product as well as improve speed of response to change

in consumer preference through imports. The only concerns

that the company has in this regard is the current high level

of duties, which limit the opportunity to launch value for

money products.

BIBLIOGRAPHY

Philip Kotler (Eighth Edition) “Marketing Management”,

Prentice Hall of India Ltd.

Advertising and marketing Magazine

Company Literature

Market survey and questionnaires

Web site: www.cadburyindia.com

Web site: www.google.com

Business World

QUESTIONNAIRE

1. Do you eat chocolates? Yes No

2. Which brand of chocolates do you use? Cadbury’s Nestle Amul Others

3. Where do you buy chocolates from? Super stores Retail Stores Restaurants Movie Halls Others

4. Are you aware of any campaign of the above brands? Yes No

5. Which cadbury’s product do you usually prefer or use? Dairy Milk 5 Star Fruit & Nut Perk Temptation

6. Do you think Cadbury’s chocolate is easily available in market ? Yes No

7. Describe Cadbury’s Chocolate in one word?______________________________________________________

8. Your comments on Cadbury’s products?______________________________________________________