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A PROJECT ON THE CADBURY DAIRY MILK Submitted By: DHRUTI BHAWANJI (09016) ROHAN CHOUREY (09020) HEENA DAGAR (09021) PRADIPSINH JADEJA (09039) CHIRAG KAPURIYA (09045) Guided By: PROF. BHAVESH O. VANPARIYA TOLANI INSTITUTE OF MANGEMENT STUDIES Cadbury dairy milk ….kuch Mitha Ho Jaye

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A

PROJECT ON

THE CADBURY DAIRY MILK

Submitted By:

DHRUTI BHAWANJI (09016)

ROHAN CHOUREY (09020)

HEENA DAGAR (09021)

PRADIPSINH JADEJA (09039)

CHIRAG KAPURIYA (09045)

Guided By: PROF. BHAVESH O. VANPARIYA

PGDM PROGRAMME

(YEAR 2009-2011)

TOLANI INSTITUTE OF MANAGEMENT STUDIE

ADIPUR

TOLANI INSTITUTE OF MANGEMENT STUDIES

Cadbury dairy milk ….kuch Mitha Ho Jaye

The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, U.K., but the journey with chocolate lovers in India began in 1948.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of

Cadbury Dairy Milk with a variety of ingredients and are very popular amongst

teens & adults.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie,

chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a

delightful combination of milk chocolate and white chocolate. Giving consumers

an exciting reason to keep coming back into the fun filled world of Cadbury.

Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market.

Cadbury dairy milk ….kuch Mitha Ho Jaye

Cadbury – Company OverviewCadbury plc. is a confectionery and beverage company with its headquarters

in London, United Kingdom, and is the world's largest confectionery

manufacturer.

Its heritage can be traced back in 1824 when John Cadbury opened a shop in

Birmingham selling cocoa and chocolate. Since then Cadbury have expanded our

business throughout the world by a programme of organic and acquisition led

growth.

Cadbury dairy milk ….kuch Mitha Ho Jaye

TOLANI INSTITUTE OF MANGEMENT STUDIES 1

In the Chocolate Confectionery business, Cadbury has maintained its undisputed

leadership over the years. Cadbury enjoys a value market share of over 70% - the

highest Cadbury brand share in the world.

Cadbury began its operations in 1948 by importing chocolates and then re-

packing them before distribution in the Indian market Cadbury’s flagship brand

Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The

pure taste of CDM defines the chocolate taste for the Indian consumer.

After 59 years of existence, it today has five company-owned manufacturing

facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi

(Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and

Chennai).

The firm was formerly known as Cadbury Schweppes plc before demerging in May

2008. With a history stretching back over 200 years, today Cadbury Schweppes

employs around 54,000 people and its brands are enjoyed in almost every

country around the world. They are also the world's third largest soft drinks

company.

Throughout history chocolate has been associated with romance and sharing.

Cadbury dairy milk ….kuch Mitha Ho Jaye

Today the richness and smoothness of Cadbury chocolate is what makes it one of

the world's favorite treats.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in

India. For over two decades, company have worked with the Kerala Agriculture

University to undertake cocoa research and released clones, hybrids that improve

the cocoa yield. Cocoa team visits farmers and advises them on the cultivation

aspects from planting to harvesting. Company also conduct farmers meetings &

seminars to educate them on Cocoa cultivation aspects and efforts have increased

cocoa productivity and touched the lives of thousands of farmers.

At Cadbury PLC.Core purpose is "Working together to create brands people love".

The core purpose captures the spirit of what we are trying to achieve as a

business.

Cadbury collaborate and work as teams to convert products into brands.

Simply put, we spread happiness!!!

Cadbury dairy milk ….kuch Mitha Ho Jaye

Small family business developed into an international company and how the high

standards of the Cadbury brothers were combined with the most sophisticated

technology, skills and innovation.

Cadbury dairy milk ….kuch Mitha Ho Jaye

COMPANY’S ORIENTATION TOWARDS MARKET PLACE

The production concept:

The products of Cadbury are widely available in the Market and have effective

distribution channel.

The Product concept:

The product concept proposes that consumers favor products that offer the most

quality, performance, innovative features. Cadbury dairy milk has best quality,

performance and available in many varieties (fruit n nuts, crackles).

The selling concept:

The selling concept proposes that consumers will not buy the enough products of

company unless aggressive selling and promotion efforts. Cadbury dairy milk

The marketing concept:

Cadbury dairy milk ….kuch Mitha Ho Jaye

The marketing concept holds that achieving company’s goals is being more

effective than competitors in creating, delivering superior customer value to

customers. Cadbury dairy milk is always deliver a superior value to its customer.

The holistic marketing concept:

Cadbury dairy milk never allotted the competitors to gain an upper hand in the

market which it created. Cadbury dairy milk achieved such tremendous success

because of careful branding and ad campaigns. Company always strives to do the

right thing. Honesty, openness and being straightforward characterize the way

they do business. Company has clear principles and do what they say they will do.

Cadbury dairy milk is able to dominating the chocolate market because of careful

marketing and is a showcase of the marketing genius of Cadbury.

Relationship marketing:

Relationship marketing aims to build mutually satisfying long term relationship

with customers to earn and retain firm’s business. Cadbury dairy milk

Cadbury dairy milk ….kuch Mitha Ho Jaye

Integrated marketing: Integrated marketing refers to the marketing mix tool

which is known as 4P’s of marketing.

PRODUCT:

Varieties (dairy milk, fruit n nut, crackles)

Quality (consistency in quality)

Design (square box)

Brand (reliable and old brand)

Attractive packaging (pack in golden wrapper, celebration pack)

Various sizes (available in 10gm, 30gm, to big celebration pack)

PRICE: Rs.5 of 10gm of dairy milk

Only fixed prices

PROMOTION:

Advertising (cricket, so what anyone won) Direct marketing

PLACE:

Worldwide Various assortments Location (smallest village to metro city)

INTERNAL MARKETING

PERFORMANCE MARKETING:

Cadbury dairy milk ….kuch Mitha Ho Jaye

Cadbury take accountability for their social, economic and environmental impact.

In this way company aim to make their business, their partners and their

communities better for the future. Cadbury’s Business Principles are their code of

conduct and also take account of global and local cultural and legal standards.

They confirm their commitment to the highest standards of ethics and business

conduct. It collaborates and works as teams to convert products into brand

VALUE DELIVERY PROCESS

Customer segmentation:

For product like Cadbury, widely children, teenagers & youth are much more interested in chocolates as compare to old age people.

Market selection/focus:

Merely market is all may it be rural or urban because Cadbury is available in all size.

Choose the value Provide the value Communicate the value

Customer segmentation

Market selection/focus

Product development

Service development

Pricing

Sales force

Sales promotion

Advertising

Cadbury dairy milk ….kuch Mitha Ho Jaye

Value positioning:

To give customer satisfaction, great taste, attracting packing, discounting, other offer to attract the target customer.

Product development:

Cadbury create various flavor for different customer to grab the opportunity. For ex for children wowie, for family pack celebration.

Service development:

Service is serve best by the Cadbury company to its customer as full detail of content, availability of product.

Pricing:

Price is set as per keeping target customer in mind so that all can afford the chocolate and can enjoy.

Sourcing making:

It defines that sourcing of Cadbury raw material and how the supply chain had been managed, what are different sources to attract customer for buying their product.

Distributing servicing:

As service or distributing is in wide range, it is available at all places over India. You’ll find in urban as well as rural area.

Sales force:

Cadbury dairy milk ….kuch Mitha Ho Jaye

Cadbury had large sales force for different state whole seller and different retailer then to the customer.

Sales promotion:

Sales promotion is done by Cadbury buy bring celebrity for advertisement, also some or other offer to customers.

Advertising:

It has been proved more beneficiaries to Cadbury because customers are more attracted towards advertisement. Ambassador also matter a lot as it is Amitabh Bachchan

MARKETING INFORMATION SYSTEM:

Marketing information system consists of people, equipment procedure to

gather, sort, analyze and distribute needed, timely and accurate information to

marketing decision makers.

MARKETING INTELLIGENCE

The most important part of the internal records system is the ORDER TO

PAYMENT CYCLE.

Manufacturer Warehouses Distributors RetailerConsumer

Retailer gives order on weekly basis to distributer. Next day of order Distributer

deliver the stock to the retailer on the cash payment. (eg. if retailer give an order

on Monday than distributer deliver the chocolates on Tuesday on cash payment)

Cadbury dairy milk ….kuch Mitha Ho Jaye

MACRO ENVIRONMENT

TREND

Trend is direction or sequence of events that has some momentum and durability

Trends are more predictable and reveals the shape of the future. In case of

Cadbury, In India people used to eat sweet in festivals, occasions but now a day’s

young people used to eat chocolates (celebration pack). They also give chocolates

as a gift.

DEMOGRAPHIC ENVIRONMENT

Population growth:

Population growth highly affect the buying of the chocolates.

Age and Life Cycle:

Preschools:- 5%

School-age:- 15%

Teens:- 40%

25-65:- 38%

65+:- 02%

Cadbury dairy milk ….kuch Mitha Ho JayeCadbury dairy milk ….kuch Mitha Ho Jaye

Gender: For purchasing Cadbury dairy milk gender doesn’t matter. Cadbury dairy

milk is for all types of persons whether male or female.

ECONOMIC ENVIRONMENT:

Economic environment depends on current income, prices, saving, debt etc, these

can have strong impact on business. Marketer must pay careful attention to trend

affecting to purchasing power. The price of Cadbury dairy milk is reasonable and

affordable. So a person does not need to think much before purchasing it.

Cadbury product available in Rs.1 (eclair) or 2(Dairymilk shots) to Rs.400

(celebration pack).

TECHNOLOGICAL:

cocoa and milk quality can be improved much by technology. Refrigeration power

can be improved by new technology so that cold storage product such as dairy

milk and other milk products can be stored well for long time.

Political-legal environment:

political and legal environment consists of laws, legal system, political

interference highly influence and limit various organization. Cadbury dairy milk

also affected by the political and legal factor in terms of taxation, advertising

regulation etc.

FORECASTING AND DEMAND MEASUREMENT

In the FMCG products buyers taste and preferences changes in day to day life. So

it is very important for the Cadbury dairy milk to be up to date with the

consumers day to day changing choices. Market demand for a product is the total

volume that would be bought by a defined customer group in a defined

geographical area in defined time period. Strong demand for confectionery the

market has grown consistently at around 5% every year for last 4 years.

TOTAL MARKET POTENTIAL :

Cadbury dairy milk ….kuch Mitha Ho Jaye

Total market potential is the maximum amount of sales that might be available to

all the firms in industry during given period, under given level of industry

marketing efforts and environmental condition.

Available market is a set of consumers who have interest, sufficient income,

access to particular product.

Qualified market is asset of consumers who have interest income access and

qualification for the particular market offer. Qualified market eliminates the

consumers who are not able to buy the product because of their disqualification.

GANDHIDHAM MARKET -300000

POTENTIAL MARKET - 200000 (INTERESTED PEOPLE)

AVAILABLE MARKET – 180000(EXCLUDIND 10% POOR)

QUALIFIED MARKET – 150000(HAVE INTEREST, INCOME, ACCESS)

TARGET MARKET - 150000

PENETRATED MARKET 150000(WHO ARE BUYING)

TOTAL MARKET POTENTIAL =AVG NO OF BUYER *AVG QUANTITY*PRICE

CUSTOMER PERCEIVED VALUE

Consumer perceived value is the difference between the total customer benefits and total

customer cost.

Cadbury dairy milk ….kuch Mitha Ho Jaye

Total consumer value is the perceived monetary value of the bundle of economic, functional

and psychological benefit expects from product like service, personnel and image involved.

Total customer cost is the perceived bundle of costs customers expect to incur in evaluating,

obtaining, using and disposing of the product.

IMAGE VALUE –

Image value refers to the brand value of the product. Cadbury dairy milk is very old brand which

give consumers image value.

PERSONNEL VALUE-

Social value given by product or brand to the consumers. Cadbury dairy milk eats in some

relation for sweet. Brand ambassador of Cadbury dairy milk is Amitabh bachchn.

SERVICE VALUE-

Service value is refers to the service given by the product to the consumers. Cadbury dairy milk

easily available anywhere, so it provides service to the consumer.

PRODUCT VALUE-

Product value refers to the functionality of product and features of product. Cadbury dairy milk

available in lots of varieties like dairy milk, fruit n nut crackles etc.

MONETARY COST –

Monetary cost refers to the price paid to buy a product. Cadbury dairy milk available in Rs.5, so

it is monetary cost for consumers.

Cadbury Dairy Milk ….kuch Mitha Ho Jaye

TIME COST-

Time cost refers to the time to buy the product, using the product and disposing the product.

ENERGY COST-energy cost refers to the physical cost paid by the consumer to use or dispose

the product.

PSYCOLOGYCAL COST - psychological cost refers to the cost of six senses.

Cadbury dairy milk ….kuch Mitha Ho Jaye

CUSTOMER DEVELOPMENT PROCESS

Potentials: Those customers who are willing and have capacity to buy product. For Cadbury all are customer who can afford to buy.

Prospectus: As the price of Cadbury are available in wide range, so it is rare that prospectus are disqualified. They are accepted.

First time customer: As the person who are willing to have Cadbury and trying for the first time is first time customer for the company.

Repeat customer: Once the customer had started consuming the Cadbury chocolate and again buys then he or she is repeated customer.

Clients: To whom Cadbury give some special treatment are client of company.

Cadbury dairy milk ….kuch Mitha Ho Jaye

Members: Clients are made members to whom special benefit and membership is given.

Advocates: Those members who recommend the product and service to other is made advocate.

Partners: As it is hard to convert advocate into member for such a big company like Cadbury.

FACTORS AFFECTING CONSUMERS BUYING BEHAVIOUR.

All marketing starts with the consumer. So consumer is a very important person

to a marketer. Consumer decides what to purchase, for whom to purchase, why

to purchase, from where to purchase, and how much to purchase. In order to

become a successful marketer, he must know the liking or disliking of the

customers. He must also know the time and the quantity of goods and services, a

consumer may purchase, so that he may store the goods or provide the services

according to the likings of the consumers. Gone are the days when the concept of

market was let the buyer’s beware or when the market was mainly the seller’s

market. Now the whole concept of consumer’s sovereignty prevails. The

Cadbury dairy milk ….kuch Mitha Ho Jaye

manufacturers produce and the sellers sell whatever the consumer likes. In this

sense, “consumer is the supreme in the market”.

As consumers, we play a very vital role in the health of the economy local,

national or international. The decision we make concerning our consumption

behavior affect the demand for the basic raw materials, for the transportation, for

the banking, for the production; they effect the employment of workers and

deployment of resources and success of some industries and failures of others.

Thus marketer must understand this.

Preference (or "taste") is a concept, used in the social sciences, particularly

economics. It assumes a real or imagined "choice" between alternatives and the

possibility of rank ordering of these alternatives, based on happiness, satisfaction,

gratification, enjoyment, utility they provide. More generally, it can be seen as a

source of motivation. In cognitive sciences, individual preferences enable choice

of objectives/goals.

The study of the consumer preference not only focuses on how and why

consumers make buying decision, but also focuses on how and why consumers

make choice of the goods they buy and their evaluation of these goods after use.

So for success of any company or product promotion it is very necessary to depart

its concentration towards consumer preference

CULTURAL FACTOR –

Cadbury dairy milk ….kuch Mitha Ho Jaye

Culture, subculture, social class are important influence on consumer buying

behavior and it is fundamental determinant of person’s wants and behavior. For

the Cadbury dairy milk country like India, the cultural factors highly influence on

buying of chocolates. Sweet is integral part of Indian culture.

SOCIAL FACTOR-

It includes reference group, family and social roles and status which affect the

buying behavior. Social factors includes such as norms, beliefs, values of the

company. Cadbury dairy milk has created the positive impact on customers in

terms of belief and values

Reference Group: reference groups are all groups that have a direct or indirect

influence on buying behavior.

Membership groups – Groups having direct influence are called membership

groups. In buying of chocolates membership group highly influence.

Primary groups-

Cadbury dairy milk ….kuch Mitha Ho Jaye

Group having friend, family neighbors and coworkers etc. in buying chocolates

this primary group mostly influence because of different tastes and preferences of

friends and family.

Secondary group –

Group having member of religious community, professional, trade union groups. This group has a little less effect on consumer in buying chocolates.

Aspirational groups have positive effect on the consumer in buying chocolates

and Dissociative groups have negative effects on consumer in same.

Rolls and Status.

PERSONAL FACTORS

Taste and preference:-Cadbury has wide variety of products and 1 of them is dairy milk chocolates and so different variety of it such as fruit and nut, almond, so the demand will be according to the taste and preferences of the variety.

AGE AND STAGE IN LIFE CYCLE -

OCCUPATION AND ECONOMIC CIRCUMSTANCES

PERSONALITY AND SELF CONCEPT

LIFESTYLE AND VALUE

COMSUMER BUYING DECISION PROCESS

Cadbury dairy milk ….kuch Mitha Ho Jaye

1. Problem recognition - Need of sweets for celebration - To give gift- Kids, youth, valentines day

2. Information search - Personal : friends & peers- Commercial : packing & advertisement - Public : media mass- Experiential : if sum one is mad after Cadbury (sample survey)

3. Evaluation of alternative

Total set Awareness set

Consideration set

Choice set Decision

Cadbury Cadbury Cadbury Cadbury CadburyNestle Nestle Nestle Local sweetKraft Kraft Local sweetAmul Local sweetParleLocal sweet

Attributes

item Taste (0.5)

Advertisement (0.15)

Brand (0.15)

Price (0.10)

Packing (0.15)

Cadbury 9 6 8 7 8Nestle 7 3 8 7 1Local sweet

7 7 7 3 8

(Here percentage give to each criteria is multiplied with the weight) Cadbury = 4.5 + 0.6 + 1.2 + 0.7 + 1.2 = 8.2Nestle = 3.5 + 0.3 + 1.2 + 0.7 + 0.15 = 5.85

Local sweet = 3.5 + + 0.7 + 1.05 + 0.3 + 1.2 = 6.75

4. Purchase decision - When ? : occasion, frequently, desert .- Where? : any store.- How much? : depend on situation.

5. Post purchase behaviour- Cadbury can be used for making cake- Keep it at a medical store so that more people get cough & take more

medicines- Baby sitting people give Cadburies to make children quiet- To propose sum one

Those people who want to increase the profit

MENTAL ACCOUNTING

Mental accounting refers to the way consumers code, categorize and evaluate

financial outcomes of choices. In case of Cadbury dairy milk, if any consumer

have Rs. 10. From that Rs. 10 he buy Cadbury dairy milk of Rs.5 if chocolates loss

or melted than consumer has two ways, either he buys another one or he left the

idea to eat chocolate. In first case, he may have mentally allocated Rs. 5 to eat the

chocolate. Buying

Cadbury dairy milk ….kuch Mitha Ho Jaye

Cadbury dairy milk ….kuch Mitha Ho Jaye

Identifying Market segmentation and target :

o If we consider as per level of market cadbury company consider “segment marketing” concept where taste and preference of consumers are homogeneous.

o In every corner of country dairy milk is available at same price it means that this company had managed its logistics very efficiently, including rural and semi urban areas.

o It had covered full market, not matter whatever is age, gender, occupation, education(as per is advertisement shown in which star like “AMITABH BACHAN “ is also having dairy milk & a good line said “kuch meetha hojae”)

o As dairy milk come in different size, cost, taste, pack etc it want that every person can buys there product.

o Company had made in different quantity such as family pack and some chocolates as with some special taste as dry fruits etc so that they cost are quite high which are pursued by big personality so that there status is also maintain.

o It is not that there should be any special occasion it is consumed regularly also by kids teenagers etc.

o Attitude towards dairy milk also positive of consumers and are satisfied with taste.

o From different market dairy milk company had covered full market, for different product are available for different market segment.

Cadbury dairy milk ….kuch Mitha Ho Jaye

Michael Porter -Competitive five force model

This concept is also related to our product “Cadbury”

Potential Entrants : For entering into confectionary industry, they need a strong research on taste & preference of customer or else if there is huge investment in any particular industry & for making an entry barriers by effective supply chain management & logistics as Cadbury have from many year of experience.

Buyers : Buyer of the Cadbury are all whole-seller, retailer for business purpose & individual who like sweet and are not patient of diabetes, such as children, teenager, youngster and also old aged people.

Substitutes : The substitutes of Cadbury is Nestle, Parle, etc. co. or may also locally available sweets in nearby place.

Industry Competitors

Potential Entrants

Buyers

Subsitutes

Suppliers

Suppliers : Switching from one supplier to another supplier for raw material of coco powder, milk supply and ingredient for the bargaining power and maintain the cost of the raw material

Industry Competitor : The competitor which can face the above substitutes, entrants, buyers & suppliers can be the competitor for the Cadbury such as this company can be competitor for Cadbury i.e. Nestle company, parle company etc. Cadbury have to make a constant watch on other company strategy.

Five Product Level:

For our product Cadbury the analysis of five product level:

Core benefit

Basic

Expected

Augmented

Potential product

Core Benefi : The service or product that customer is really buying. From our product Cadbury mainly to have something sweet for eating anytime anywhere, that should be chocolate.

Basic Product: As core benefit of sweet is completed then basic product for Cadbury is available at all places, which can per basic requirement of consumer, that wherever that want to eat they can buy at nearby place.

Expected Product: Maintain the quality of product, reasonable cost & available in different size.

Augmented Product : Cadbury produce different as per need and taste of consumer for children wowiev, youngster fruit-nut & also whole family pack for big family, with attractive packing and different flavor of chocolate. It also make its advertisement so effective by ambassador as “AMITABH BACHAN”.

Potential Product : Cadbury is a potential product has all the quality that satisfy the consumer in every aspect, as brand name is also high in market & also follow the value of Indian market such as custom religious at time of advertisement.

Product – Mix :

Product – mix Width

Product – mix Length

Chocolate Snacks Beverages Candy GumsCadbury dairy milk

Bytes Bournvita Halls Bub==aloo

5 starPerkCelebrationTemptation

Éclairs

Germs

Packaging, Labeling, Warranties & Guarantees:

Packing of Cadbury product are very attractive as more customer are attracted towards product & at time of festival there is more attractive packing is made as there is culture in india to gift something to relative so celebration pack is given to friends relative.

Labeling is also perfectly done by Cadbury symbol of vegetarian, date of manufactured, date of expiry & detail about company loction, production house, ingredient, batch no, when delivered etc information is give for knowledge of product and company.

Warranties & Guarantees are basically not given in such type of product simply is should be consumed before given time.

Brand element

In cadbury the trademarkable device that identify and differntiate the brand is the fonts of writing cadbury.

Brand element choice criteria

1)memorable : we recalled the name cadbury whenever we want to have any kind of chocolates. Evenif we want to eat something like nestle or other chocolates the name from our mouth will be cadbury

2)likable : the chocolate of cadbury is named as dairymilk hence we feel that it has milk contain in it

3)adaptable : cadbury when came in the market was only one simple flavour. Gradually it launched crackles,fruit n nuts, perk(wafer biscuit),bytes,gems,etc.

4)protectible: the name cadbury has become synonymous with all the product cadbury of chocolates.

Product life cycle management strategy

Product classification

Consumer goods classification : cadbury is convenience good because it is purchased frequently,immediately and with minimum effort. Further it is impulse goods because it is purchased without any planning or such efforts.

Product differntiation

Form : the size and the shape of the cadbury is different from other chocolates. It has small ten cubes on which cadbury is written.

Conformance quality : units are identical and meet the promised specification

Style : the look of the packet and the feel to the buyer is same everytime whenever the name of cadbury comes. The purple wrapper is same from begning.

Pricing strategies

Perceived value pricing : the company does pricing on the perceived value of the customers eg.price range varies from rs 1 to rs 550 depending upon the type of the chocolates.

Going rate pricing : because of the competitors cadbury is also pricing some chocolates at rupees 1, 2, 5,10 etc.