Cadbury Project_2 Final

8/13/2019 Cadbury Project_2 Final

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BIMTECH

MARKETING PROJECT

ON

PREPARED BY:

GROUP 9Shubham Gulati

Spa!h Shi"a!ta"a

Ama# G$%al

Rabi%a GillTipt Si&hu

A!hi!h Sa#'(a#

1



CHAPTER)*

INTRODUCTION

Chocolate consumption in India is extremely low. Per capita consumption is around

160 gms in the urban areas, compared to 8-10g in the de!eloped countries. In rural

areas, it is e!en lower. Chocolates in India are consumed as indulgence and not as a

snac "ood. # strong !olume growth was witnessed in the early $0%s when Cadbury

repositioned chocolates "rom children to adult consumption. &he biggest opportunity

is liely to stem "rom increasing the consumer base. 'eading players lie Cadbury and

(estle ha!e been attempting to do this by !alue "or money o""erings, which are

a""ordable to the masses.

OBJECTI+E O, THE STUDY

• &o analy)e the consumer pre"erence and perception "or Cadbury Chocolate with

re"erence to other maret players

• *aret share o" competitor%s brands.

• &o study the consumer beha!ior o" chocolates.

• #nalysis o" the product, pricing, a!ailability ,+uality, taste, ad!ertising and

pacaging o" Cadbury Chocolates.

• &o study the strategies measures adopted by Cadbury.



C HAPTER)-

INDUSTRY PRO,I.E

O+ER+IE/ O, INDUSTRY AS A /HO.E

&oday%s scenario in the chocolate industry is a highly competiti!e one. In the wae o"

liberali)ation as the economy opens up more and more international brands o"

chocolate are entering into the Indian *aret gi!ing to are coming the competition to

capture the Indian *aret is holing up. one are the days when the chocolates were

considered to be a luxury item only to be consumed by the rich people. &he

chocolates appeal to all the classes irrespecti!e o" age, sex or status. (ow thechocolates are positioned as a light meal to be consumed between hea!y meals. /ome

o" the examples o" this type o" positioning are 0P123 and 0Kit Kat3 with chocolate

companies ha!ing intense competition and with reducing shel" space only those

companies who maret their chocolates as well as ad!ertise and pacage them will

ha!e a chance to sur!i!e in the maret.

&he studies ha!e shown that most o" the time chocolate buying is an impulse action

i.e. when one sees the chocolates on the shel" o" the shop so, it is !ery important "or

the manu"acturer to pacage them attracti!ely.

(ow each and e!eryone position day%s chocolates as a thing, which can be eaten.

e had to gauge the strength and weanesses o" establish players in the chocolate

maret. /o, we regard top players lie Cadbury%s%, (estle%, #mul% and some

2oreign Chocolates.

3ut there in the chocolate maret Ca&bu% has had the maret share o" about 415

"ollowed by (estle at about 5 "ollowed by #mul 75 about 5 by rest small

players.

&here were !arious reasons due to which there was such a large gap between the

maret leader and the rest such as -

• Cadbury%s main strength is "ast reaction is e!ery time the competitorslaunch a product they immediately launch a ri!al product with "ar lower



prices lie e.g. hen N1!tl1 launched 4Kit)Kat5 Cadbury%s soon

"ollowed with 9Per: with "ar lower prices. /o as to retain its maret

share in which they ha!e succeeded.

• &he other strength, which we "eel, is distribution networ. Cadbury%s has a

"ar better distribution networ than (estle and #mul. Its chocolates can be

"ound in e!ery noo and corner o" the country where as the competitors

ha!e not been able to do so.

• #nother interesting strength, which we "ound out during the maret

research, was the pacaging strategy, we "ound out that all.

• ;ig players especially Cadbury%s eep on changing the pacaging o" its

chocolates a"ter e!ery six months. *ost o" people decide to buy the

chocolate only i" they "ind the pacaging attracti!e. ;ut there are some

weanesses also attached with the chocolate industry lie we all now that

chocolate as such is a perishable commodity, so, i" there is no proper

maintenance the chocolate can easily perish due to which the company can

run into se!ere losses.

#s the Indian company economy is coming out o" age and per capita income as well

as spending is increasing, there is a lot o" opportunity in the chocolate maret. &he per

person consumption o" chocolates o" Indian is !ery low as well as there are !ery "ew,

established players in the maret.

&he con"ectionery industry in India is approximately di!ided into

• Chocolates

• <ard-boiled candies

• =clairs to""ees

• Chewing gums

• 'ollipops

• ;ubble gum

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• *ints and lo)enges

HISTORY O, CHOCO.ATES

&he word >chocolate> is said to deri!e "rom the *ayan >xocoatl>? cocoa "rom the#)tec >cacahuatl.> &he *exican Indian word >chocolate> comes "rom a combination

o" theterms choco @>"oam>A and atl @>water>A? early chocolate was only consumed in

be!erage. &he story o" chocolates began in the new world with the *ayans, who

dran a dar brew called cacahuha+uchl. 'ater, the #)tecs consumed chacahoua and

used the cocoa bean "or currency. In 1B, they o""ered cocoa bean to Corte), who

introduced chocolate to the old world, where nut swi"tly became a "a!orite "ound

among the rich and noble o" =urope.

2rom the beginning turning raw, better cocoa beans into what one 11th century writer

called 9the only true "ood o" the gods: has been a "ine art, a delicate mixture o"

alchemy and science. Centuries ago, it was disco!ered that by "ermenting and roasting

the beans, an almost otherworldly "la!or could be created. In 184B, a"ter years o"

trying, a 1-year-old candy maer in ea!y named Daniel peter "igured out how to

combine mil and cocoa powder. &he resultEmil chocolate. Peter, a "riend and

neighbor o" HENRI NEST.E, started a company that would +uicly become the

world%s leading maer o" chocolate. Currently it has marer capitali)ation o" 100

billion /wiss 2rans. #nother household name in the "ield o" chocolate maret is

Ca&bu% S6h(1pp1! Pl67! ha!ing a F7. billion company and has a presence in 00

countries.

&he total con"ectionery maret is !alued at Gupees billion with a !olume turno!er

o" about 17B000 tones per annum. &he category is largely consumed in urban areas

with a 405 sew to urban marets and a 05 to rural marets. <ard-boiled candy

accounts "or 05, =clairs and &o""ees accounts "or 185, ums and *ints and

lo)enges are at par and account "or 15. Digesti!e Candies and 'ollipops account "or

1.B5 share respecti!ely.

&he opportunity in India sure loos big. India maes up only 0.B per cent or F00

million @Gs 1,B00 croreA o" the FB4 billion global chocolate maret. #nd the per capita

consumption at around 0.17 grams, compared with 10 gs in the H/, is among thelowest in the world. 3n the "ace o" it, the !ital statistics o" the con"ectionery segment

B



seem more promising than the con!entional 2*C categories such as toilet soaps or

detergents. <owe!er, a close loo into the industry says a di""erent story. Gigid price

points, rising input costs, distribution di""iculties and competition ail the

con"ectionery segment. #lthough, companies are drawing up inno!ati!e strategy to

sustain their growth, the industry has been urging the go!ernment to tae steps to

mae it more competiti!e. /pearheading this demand is Indian Con"ectionery

*anu"acturers #ssociation @IC*#A.

&he maret is estimated to be growing at a healthy 1 per cent, albeit on a low base.

Compare that with <ershey%s growth o" "ewer than "our per cent in its main maret,

the H/. &he chocolate maor is not !enturing into unsheltered territory.

&he two "irms that launched a oint bid "or ac+uiring <ershey in 00 J Cadbury and

(estle, dominate the Indian maret. hile Cadbury commands a maret share in

excess o" 60 per cent, (estle has a 0 per cent slice o" the chocolate pie.

&he entry o" biggies lie the FB billion <ershey, says # *ahendran, mentor director,

odre <ershey 2oods ;e!erages, will not necessarily tae the maret away "rom

(estle or Cadbury. It%s the pie that will grow to accommodate new players.

*eanwhile Cadbury, which is again maing o!ertures to buy out <ershey%s globally,

is positioning chocolates as the best treat "or any celebration. #nd dairy maor #mul,

which entered the chocolates maret a "ew years ago, recently launched a range o"

sugar "ree chocolates.

(estle too has introduced Kit-Kat 'ite, a diet !ariant o" its popular Kit-Kat brand

aimed at the health conscious segment. ith more organi)ed retailing "ormats in

place, companies are con"ident that consumption will per up and chocolates that

retail "rom air-conditioned shel!es will escape the un"a!orable climate o" the mom-

and-pop stores. &his time, it%s the players that are going to generate all the heat.

&he con"ectionery product is an impulse generated demand exercise and o"ten

depends on trade push and intermittent consumer pull. &he narrow spectrum o" brand

acti!ity in con"ectionery can become broad only i" the industry is willing to in!est in

technology upgradation, inno!ations and brand building exercise. /uch producti!e

acti!ities re+uire huge "inancial resources. Hn"ortunately, the industry is not in a short

notice with "uture expectations.

6



&he crux o" the issue is that the predominant maret "or con"ectionery products e!en

today exists in the urban, semi-urban and rural marets outlets and interestingly in the

; C class outlets. (inety per cent o" sugars boiled con"ectionery products are priced

at B and B0 paise slots and the said end price at B0 paise has remained static "or the

past 11 years due to coinage issue. &he next con!enient price slot a"ter B0 paise is Ge

1, which is double that o" B0 paise. In the pacaged "orm, the end price or the

maximum retail price o" pacages has "lexibility "or upward re!ision, whereas

con"ectionery does not enoy such price elasticity. &he urban and rural child as a !ery

important consumer segment "or con"ectionery category has expectations "ar too

higher than what it used to be. #t the same time, it is not geared up to pay more "or

this product and continues to enoy in buying the product in singular counts.

&here"ore, the industry is compelled to "ocus maority o" their brands in B paise B0

paise and some in the Ge 1 price slots e!en today.

Policy initiati!es taen by the o!ernment, liberal re"orm measures and !arious tax

bene"its, which include among others

•

De-licensing o" the entire sector • #utomatic appro!als "or "oreign in!estment up to 100 percent except some

products lie alcoholic be!erages and also technology trans"er.

• &ax exemption on agro-processing units and "ull exemption o" excise duty on

dairy machines.

• =xemption o" all processed "ruits and !egetables products "rom Central

=xcise Duty

• Lero duty import o" capital goods and raw material "or100 percent exportoriented units.

• =xemption o" exports earnings "rom corporate tax.

• o!ernment grant "or setting up o" common "acilities in #gro 2ood Par.

• #llowing use o" "oreign brand name.

&he central go!ernment should come "orward to extend support to the con"ectionery

industry by suitably correcting the anomalies in the le!y o" central excise duty on

4



di""erent product segments o" it. Con"ectionery containing cocoa, chewing gums, and

bubble gums are currently le!ied 16 per cent excise duty, which should be lowered to

eight per cent as in the case o" sugar boiled con"ectionery. &he abatement on central

excise should be uni"ormly increased "rom B per cent to 7B per cent

&he state go!ernments should come "orward in reducing the #& applicability "rom

1.B per cent to 7 per cent. &he go!ernment should act "irm in dealing with IPG

in"ringement issues by pro!iding separate courts and policing authorities throughout

the country to chec such negati!e "orces. Considering the "act that the con"ectionery

industry is pro!iding great business opportunity "or agro-based produce lie sugar,

mil, butter, glucose etc, this industry should be explicitly brought under the category

o" "ood processing nomenclature.

&he raw materials "or con"ectionery products predominantly include sugar, glucose,

mil and mil products apart "rom pacaging materials lie polyethylene and

polyester "ilm etc. &he price o" sugar has gone up by 1 per cent to 1B per cent in the

recent times and there seems to be no hope that this price would come down in the

near "uture. /ugar prices in the world ha!e hit a B-year high during 2ebruary 006

and this upward trend is liely to continue with the increased use o" sugarcane in

manu"acture o" bio "uel ethanol. &hese price hies has hit the industry%s prospects

!ery badly. &he emerging trends in con"ectionery in India cannot be di""erent "rom the

trends existing in the global marets. &he pea customs duty, which has been reduced

to 1.B per cent in the recent Hnion ;udget, gi!es large scope "or entry o" imported

"ood products, which should be a!ailable in the Indian maret and soon may become

more competiti!e.

lobal entrepreneurs seem to ha!e immensely gained with the recent customs duty

reduction. &he Indian consumer is in "or great surprises to get the international brands

o" chocolates and con"ectionery at his doorstep by paying the price in Indian currency.

It is a welcome sign so "ar as the Indian consumer is concerned but "or the chocolate

and con"ectionery industry the road map ahead seems to be tough and challenging

where only the "ittest will sur!i!e.

8



COMPANY PRO,I.E

Cadbury is a leading global con"ectionery company with an outstanding port"olio o"chocolate, gum and candy brands. e employ around B0,000 people and ha!e directoperations in o!er 60 countries, selling our products in almost e!ery country aroundthe world.In India, Cadbury began its operations in 1$78 by importing chocolates.#"ter 60 years o" existence, it today has"i!e company-owned manu"acturing "acilitiesat &hane, Induri @PuneA and *alanpur @waliorA, ;angalore and ;addi@<imachalPradeshA and 7 sales o""ices @(ew Delhi, *umbai, Kolota and ChennaiA. &he

corporate o""ice is in *umbai.3ur core purpose >creating brands people lo!e>captures the spirit o" what we are trying to achie!e as a business.e collaborate andwor as teams to con!ert products into brands. /imply put, we spread happiness MCurrently Cadbury India operates in "our categories !i). Chocolate Con"ectionery,*il 2ood Drins, Candy and um category. In the Chocolate Con"ectionery

business, Cadbury has maintained its undisputed leadership o!er the years. /ome o"the ey brands are Cadbury Dairy *il , B /tar , Per , Nclairs andCelebrations .Cadbury enoysa !alue maret share o" o!er 405 - the highest Cadbury

brand share in the worldM 3ur "lagship brand Cadbury Dairy *il is considered the

>gold standard> "or chocolates in India. &he pure taste o" CD* de"ines thechocolatetaste "or the Indian consumer.In the *il 2ood drins segment our main

product is ;ourn!ita - the leading *alted 2ood Drin @*2DA in the country. /imilarlyin the medicated candy category <alls is the undisputed leader. e recently enteredthe gums category with the launch o" our worldwide dominant bubble gum brand;ubbaloo. ;ubbaloo is sold in B countries world wide./ince 1$6B Cadbury hasalso pioneered the de!elopment o" cocoa culti!ation in India. 2or o!er two decades,weha!e wored with the Kerala #griculture Hni!ersity to undertae cocoa researchand released clones, hybrids that impro!e the cocoa yield. 3ur Cocoa team !isits"armers and ad!ises them on the culti!ation aspects "rom planting to har!esting. ealso conduct "armers meetings seminars to educate them on Cocoa culti!ationaspects. 3ur e""orts ha!e increased cocoa producti!ity and touched the li!es o"thousands o" "armers. <ardly surprising then that the Cocoa tree is called the CadburytreeM e are per"ormance dri!en, !alues led. &hroughout changing times, our constant!alues ha!e inspired us to be pioneers in business and in corporate responsibility.&hey help ensure we are proud o" our company and are critical to our core purpose o"creating brands people lo!e.3ur !alues arePer"ormancee are passionate about winning. e compete in a tough but "air way. e are

ambitious, hardworing and maethe most o" our abilities. e are prepared to taeriss and act with speed.

$

http://www.cadburyindia.com/brands/choco1.asp





http://www.cadburyindia.com/brands/bev1.asp

http://www.cadburyindia.com/brands/conf1.asp



















Oualitye put +uality and sa"ety at the heart o" all o" our acti!ities - our products, our

people, our partnerships and our per"ormance.Gespect

We genuinely care for our business and our colleagues. We listen,understand and respond. We are open, friendlyand welcoming. We

embrace new ideas and diverse customs and cultures.

Integrity

We always strive to do the right thing. Honesty, openness and

being straightforward characterise the way we dobusiness. We have

clear principles and do what we say we will do.

Responsibility

We take accountability for our social, economic and environmental

impact. In this way we aim to make our business, our partners and

our communities better for the future.Our Business rinciples are

our code of conduct and also take account of global and local

cultural and legal standards. !hey confirm our commitment to the

highest standards of ethics and business conduct. "ore purpose

and vision section# "ore purpose# Our core purpose is creating

brands people love. !he core purpose captures thespirit of what we

are trying to achieve as a business.

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ITS .EADING G.OBA. BRANDS ARE:

;e!erages - Crush, Dr Pepper, Indian &onic ater, Canada Dry, Crystal 'ight.

Con"ectionery chocolate - Dairy *il, *r. ;ig, &imeout, &wirl, Per, /our Patch,

<a)el (ut, &emptations, Celebration, B /tar, Double dec, ;yte, 2ruits and (uts,

Chocobix.

P.ANT .OCATIONS:

Cadbury%s manu"acturing operations started in *umbai in 1$76, which was

subse+uently trans"erred to &hane. In 1$67, Induri 2arm at &alegaon, near Pune was

set up with a !iew to promote modern methods as well as impro!e mil yield. In

1$81-8, a new chocolate manu"acturing unit was set up at the same location in

&alegaon. &he company, way bac in 1$67, pioneered cocoa "arming in India to

reduce dependence on imported cocoa beans. &he parent company pro!ided cocoa

seeds and clonal materials "ree o" cost "or the "irst 8 years o" operations. Cocoa

"arming is done in Karnataa, Kerala and &amil (adu. In 1$44, the company also

too steps to promote higher production o" mil by setting up a subsidiary Induri

2arms 'td near Pune. In 1$8$, the company set up a new plant at *alanpur, *P, to

deri!e bene"its a!ailable to the bacward area. In 1$$B, Cadbury expanded *alanpur plant in a maor way. &he *alanpur plant has moderni)ed "acilities "or ems, Nclairs,

and Per etc. Cadbury also operates third party operations at Phalton, arana and

(ashi in *aharashtra.

PROMOTIONA. STRATEGY

&o step-up chocolate penetration in India across strata, the Gs B8.18- crore Cadbury

India 'td has relaunched B /tar with a new brand proposition o" 9non-stop energy:,

an extension o" the earlier proposition o" 9an energy bar:.

In an attempt to le!erage the brand proposition amongst youth E who "orm the core

target segment E the company plans to undertae a series o" on-ground promotional

acti!ities combined with extensi!e outdoor ad!ertising and tele!ision campaigns.

&he 9 uch meetha ho aaye 9 and man main ladoo phoota and Cadbury /il

ad!ertisement has success"ully been able to lea!e a mar on the people%s mind and

hence created strong maret presence "or Cadbury.

11



#s an e""ort to communicate the core ethos o" the brand to a broader youth audience,

the company has also tied-up with youth ebsites such as (((8hu#'ama86$m,

(((8i#&%a86$m and (((86i6i#$86$m as a part o" the promotional strategy.

=laborating the rationale behind the current series o" integrated communication

initiati!es that the company has embared, the spoesperson o" Cadbury India

in"orms 93ur principle obecti!e is to moderni)e B /tar%s brand image and enhance

youth connect. &hrough e""ecti!ely communicating the "unctional attribute o" B /tar

along with the "un elements associated with chocolate, we intend to mae the brand

the 9top o" mind: energy enhancer in the youth%s li"e space. &hus maing B /tar the

constant companion o" the constantly charged Indian youth:.

&he company also plans to consolidate its penetration strength by means o" hardcore

distribution-dri!en product de!elopment strategies. &he distribution networing too

"orms a part o" the integrated brand de!elopment plan. &he impulse maret is growing

at the rate o" around 7 to 6 per cent annually.

MARKET EN+IRONMENT

GEOGRAPHICA. MARKET: Cadbury%s products are widely a!ailable ine!ery rocery shops, con"ectionery shops, schools and canteens.

P1!t A#al%!i!

P /ince the budget range is decontrolled, no political e""ects are en!isaged.

= 1A Increasing per capita income resulting in higher disposable income.

A rowing middle classurban population J increase in demand.

A 'ow cost o" production J better penetration.

/ 1A Per capita consumption expected to increase J "ashion.

A Increasing gi"ts culture J increase in demand .

A 'ower cholesterol than 9mithais: @sweet meatA subsbstitute demand.

1



& ill ha!e to rein"orce technology to international le!els once India is a 9"ree:

economy.

Ca&bu% ha! b11# !%#$#%m$u! (ith 6h$6$lat1 !i#61 *-;, when Qohn Cadbury

opened his "irst shop, establishing a "lourishing dynasty that today pro!ides the world

with many o" its "a!ourite brands o" chocolate.

Th1 Ca&bu% !t$% i! a a!6i#ati#' !tu&% o" industrial and social de!elopment,

co!ering well o!er a century and a hal". It shows how a small "amily business

de!eloped into an international company combining the most sophisticated

technology with the highest standards o" +uality, technical sills and inno!ation.

A $#1)ma# bu!i#1!!< $p1#1& i# *-; b% a %$u#' =ua21 , Qohn Cadbury, in ;ull/treet ;irmingham, was to be the "oundation o" Cadbury 'imited, now one o" the

worldRs largest chocolate producers. ;y 181 the business had changed "rom a grocery

shop and Qohn Cadbury had become a manu"acturer o" drining chocolate and cocoa,

the start o" the Cadbury manu"acturing business, as it is nown today.

Th1 l1a&1 i# th1 UK 6$#16ti$#1% ma21t, Cadbury 'imited is the con"ectionery

di!ision o" Cadbury /chweppes plc, a maor "orce in the con"ectionery and so"t drins

international maret. Ouality has been the "ocus o" the Cadbury business "rom the

!ery beginning, as generations ha!e wored to produce chocolate with the taste,

smoothness and snap characteristic o" Cadbury chocolate.

MARKET SHARE O, ITS PRODUCTS

Cadbury IndiaRs main source o" re!enue is its 405 bite o" the ,000 tonnes Indianchocolate maret. It is also present in the malted "ood maret @;ourn!ita enoys a 7

percent share o" the 0,000 tonnes brown drins maretA. 3" late, the company has

!entured into the 10,000 tonnes sugar con"ectionery maret and has gained about

B5 maret share there. &he re!enue brea up o" its di""erent business segments is as

"ollows

Despite the "act that Indians ha!e strong a""inity "or sweets, the si)e o" domestic

con"ectionery maret is small on account o" traditional consumer tastes and habits.

1



&he Chocolate maret in India is a niche maret penetrated largely in urban areas and

per capita consumption is low as compared to those in de!eloped countries o" the

est. ;ut "uture prospects o" the chocolate category loos good as the company plans

to mo!e into the arena o" snac "oods, as it has done in the estern marets.

&he maret "or *alted "ood drins is large and is characteri)ed by a "ew large players.

&he maret can be broadly segmented into white malted "ood drins which dominates

in the /outhern and the =astern parts o" the country and ;rown *alted "ood drins

which dominate in the (orth and the est. 'arge brands lie ;ourn!ita and <orlics

dominate in *alted "ood drins sector and the growth has been steady in the last "i!e

years.

&he "uture mission o" Cadbury India is R# Cadbury in =!ery PocetR. &he companyRs

business strategy hinges on "ollowing "or dri!ing its "uture growth

Increase the width o" chocolate consumption, through low price point pacs and

distribution "ocus.

Increase depth o" consumption, targeting regular chocolate consumers through

generating impulse and a dominant presence at Point o" /ale.

*aintain image leadership through a superior mareting mix.

;e a signi"icant player in the gi"ting segment, through occasion lined gi"t pacs.

;uild critical mass in the sugar business by introducing !alue-added sugar

con"ectionery products.

2uture re!enue growth will be through increasingly higher !olumes rather than priceincreases. &he management belie!es that price increase can only be a short-term

obecti!e. It is !olumes, which are !ery important to achie!e the long-term goal o"

ha!ing a wide consumer base.

&he company sees its growth in "uture in maret expansion and new product launches.

Increased reach, new launches, higher mareting spend and intensi!e promotions - the

mix, Cadbury is looing at to "uel its "uture growth. &he company is also looing "or

ac+uisition o" brands, and its huge cash reser!es might be utili)ed "or the purpose.

17



,OUNDING O, THE CADBURY BUSINESS

Th1 $u#&i#' $ th1 Ca&bu% bu!i#1!! dates bac to 181 when Qohn Cadbury "irst

made cocoa products on a "actory scale in an old malt house in Crooed 'ane,

;irmingham.

I# *;> th1 bu!i#1!! m$"1& t$ la'1 p1mi!1! in ;ridge /treet, which had its own

pri!ate canal spur lining the "actory !ia the ;irmingham (a!igation Canal to the

maor ports o" ;ritain.

Bu!i#1!! 6$#ti#u1& at th1 Bi&'1 St11t !it1 "or years and by 1848 the wor"orce

had expanded to 00, so more space was needed. &his heralded the mo!e to ;oon!ille

and the building o" what is now one o" the largest chocolate "actories in the world.

J$h# Ca&bu% 1ti1& i# *?* handing o!er the business to his eldest sons Gichard

and eorge. It is to their leadership that the success o" the enterprise is owed as the

company prospered.

1B



Sal1! !tu6tu1 $ Ca&bu% I#&ia .imit1&

Cadbury India 'imited

Core ;usiness *ass *aret @/KH S Gs. BA @/KH T Gs. BA

- Chocolates - =clairs - Drins - 'ollipop

- /nacs - *ass *aret based- Chocolates

/ales &eam

&rade

Core;usiness&eam

*ass *aret&eam

*odern &rade&eam

&raditional&rade

*odern&rade

16



Stu6tu1 $ Sal1! T1am $ a R1'i$# i# Ca&bu%

=ntire business o" Cadbury India 'imited is di!ided into two maor categories on the

basis o" selling price o" an /KH @/toc Keeping HnitA.Core business constitutes o" all

those products "or which price o" an /KH is more than Gs. B and the other products

that are priced below Gs. B constitute mass maret. Chocolates such as Dairy *il,

2i!e star, Per etc along with drins lie ;ourn!ita and /nacs such as ;ytes "orm

the Core ;usiness o" Cadbury India 'imited. *ass maret deals with products lie

to""ees such as =clairs, <alls along with lollipops and chocolates that are priced below

Gs.B.

3n the basis o" distinction o" business into categories lie core business and mass

maret, the entire sales !olume isi handled by three teams which are Core business

&eam, *ass *aret &eam and *odern &rade &eam. Core business and *ass *aret

together constitute the traditional trade o" Cadbury India 'imited. &here is one more

category, which is called as *odern trade, which taes care o" both core business and

*ass *aret products, but the area is speci"ically restricted to big *alls and Getail

stores.

G*

;/*

#/*

P/* &/I /=

14

/3



&here are "our regional sales o""ices o" Cadbury India 'imited each at (ew Delhi,

Kolata , Chennai and *umbai, which taes care o" the entire northern , eastern ,

southern and western regions respecti!ely. =ach regional o""ice is controlled by a

Gegional or ;ranch manager, which directly wors under Director o" sales. =ach

region is under a Gegional *anager @G*A which is assisted by to 7 ;ranch /ales

*anagers @;/*A. #rea /ales *anagers @*aret De!elopment *anager is also an

#/* and is a speciali)ed category in *odern tradeA wor under ;ranch /ales

*anager. =ach #/* is helped by to 7 /ales 3""icers @/3A. &he lowest le!el in the

sales department comprises o" Pilot /ales *an @P/*A, &erritory /ales In charge @&/IA

or /ales =xecuti!e @/=A.

# beat consists o" all outlets that a sales man would !isit on a routine basis in a day.

/o suppose there are $00 outlets in a city and a sales man wor on a "i!e days a wee

basis, i" the beat is 0 then 6 sales man will be re+uired to co!er the entire city.

;eat U (o. o" woring days a wee U (o. o" sales *en V (o. o" 3utlets

18



Cha##1l !tu6tu1 $ Ca&bu% I#&ia .imit1&:

2actory

GegionalDistributionCentre

Carry2orward#gents

arehouse

holesaler Getailer

=nd Customer

1$

GegionalDistributor



Cadbury India 'imited has its 2actories at /ix locations in India out o" which some

are dedicated to the production o" "ew products while the others produce the entire

range o" products. &hese "actories are associated with warehouses, which may be

owned by company or by third party. arehouses pro!ide a storage area "or the input

raw materials. &hey are also used to store IP @or in ProcessA and "inished goods.

hene!er the need arises the "inished goods "rom the "actories are taen to the

Gegional Distribution Centers @GDCA, which is "our in number. &hese Gegional

Distribution Centers recei!e, store and dispatch "inished goods and are company

owned. 2rom the Gegional Distribution Centers, the "inished goods reach to C2#s

@Carry 2orward #gentsA. C2#s do the wor o" carrying, "orwarding, processing,

billing , collection and stoc eeping. GDCs and C2#s do the same type o" ob but the

di""erence is that C2#s wor at a much lower le!el than the GDCs.C2#s are at depot

le!el where as GDCs are at regional le!el.

2rom C2#s the "inished goods go into the hands o" Gedistributors and thus change o"

ownership taes place. #t this le!el sales are reali)ed and company generates re!enue.

2rom Gedistributors the "inished goods go into the hands o" wholesalers and retailers.

/ometimes the retailers buy directly "rom distributor where as some times the chain

includes wholesaler as well. &he end customers then purchase the products "rom these

wholesalers or retailers.

;oth redistributors and retailers tae their margins be"ore selling the "inal product to

customers. &he margins o" retailers on !arious Cadbury products are shown in the

table. In direct account transactions a large Getail store lie /ubhisha places it orders

through distributor but gets the products at the distributor rates without any margin.

(ormally distributor has a margin o" 5 where as retailer gets a margin o" 15. /o in

this case suppose the distributor gi!es a margin o" 1B5 to /ubhisha as it has

"oregone its margin o" 5, it can claim that margin o" 5 "rom Cadbury India

'imited.

0



Ma'i#! at "ai$u! l1"1l! $ Cha##1l

Distributor Getailer Customer

Input @*arginA 3utput @*arginA 3utput

Cost Geali)ation Geali)ation

A"1a'1 Ma'i# $ R1tail1!

Product *argin @in 5AChocolates 1 Drins $

/nacs 1 &o""ees 1B

1



Di16t A66$u#t Ta#!a6ti$#!:

Cadbury Depot Getail /tore Depot

Ta&1 Stu6tu1 $ Ca&bu% I#&ia .imit1&

&he entire trade o" Cadbury can be di!ided into two broader categories such as Getail

and *odern &rade. Getail category consists o" top end stores and purple star outlets,

which achie!e a speci"ic sales target.

ia Gedistribute

Cadbury

Getail- Purple /tar 3utlets- &op =nd 3utlets- *ain Getail

*odern &rade- *alls

Institutional

- <ospitals- Canteens

(ational Chain /tand-alone storeGegional Chain

(ew ChannelDe!elopment

*odern&rade

/weet/hop

CallCentre

i"t /hop



3n the other hand, modern trade deals with big malls etc. *odern trade taes care o"

"inding new ways to increase the business !olume through new channel de!elopment.

(ew channels include gi"t shops, sweet shops that use chocolates "or maing bar"i and

some other sweets etc. *odern &rade also aims at enhancing the sales through

Institutional customers lie hospitals, college canteens, corporate clients etc. *odern

trade caters to the needs o" big retail chains, which may be regional or national @'ie

Pantaloons , ;ig ;a)aar , Geliance etcA and also stand alone stores lie /pice, which is

present in only one city.

;aced by an array o" popular brands and inno!ati!e ad!ertisement campaign,

Cadbury India has car!ed a niche "or itsel" in the domestic chocolates maret. #t

present, it enoys a dominant share o" about 40 per cent in this segment.

&he popular brands in its "old include Dairy *il, 2i!e /tar, =clairs, ems and Per.

&he company also has a presence in the malted "ood drin business through the

;ourn!ita brand. &he chocolate business accounts "or the bul o" CadburyRs re!enues

and the malted-"ood drin "or a little o!er 0 per cent to the total re!enues. #bout 11-

1 per cent "lows "rom the sugar con"ectionery business.

#ided by a combination o" "actors, the company has managed to post a steady growth

in per"ormance in recent years. Inno!ati!e ad!ertisement and promotional campaign,

!ariation in product-cum-price mixes, and expansion o" the distribution networ are

the ey "actors behind the recent growth in per"ormance. <owe!er, the "irm trend in

the price o" cocoa -- the ey raw material -- has tended to cap the growth in

pro"itability. #& present, Cadbury India @CI'A rans 8 th in Cadbury /chweppes @C/A

in terms o" pro"it @P;I&A. H.K., #ustralia, Canada and Ireland are ahead o" India. #s

India is emerging maret, "ocus is on India. &here are huge opportunities in India.

2eb% 06 the parent company Cadbury /chweppes increased its share "rom 7$ 5 in

00B to $7 5. &he consideration "or that increase in stae was around W111 million

and buying out the minority shares did it.



*aor #chie!ements o" Cadbury

• orlds (o 1 Con"ectionery company

• orldRs (o ums company.

• orldRs (o be!erage company.

• Cadbury Dairy *il ;ourn !itas ha!e been declared a >Consumer /uper

brand> "or 006-4 by /uper brands India.

• Cadbury India has been raned Bth in the 2*C sector, in a sur!ey on

IndiaRs most respected companies by sector conducted by ;usiness orld

maga)ine in 004.

• Cadbury India was recogni)ed as one o" the India%s best managed

Companies in 00 by ;usiness &oday and #& Kearney.

• It was also adudged one o" the India%s B great places to wor in 00 and

007 by ;usiness orld and row &alent.

• &he Qune 00 issue o" ;usiness today identi"ied Cadbury India as one o"

IndiaRs best-managed companies in 00.

• Cadbury India was lauded "or its !alue creation, "or its strategy o" "ocusing

on power brands, and its aggressi!e "oray into the low end maret with

Choci as well as launches at the top end.

• Cadbury succeeded in reducing the impact o" the slow down in the Indian

2*C industry was also recogni)ed "or its inno!ation and consistent

de!elopment o" new products "or consumers in India.

7



Ma21ti#' Mi@

D1i#iti$#

*areting mix is the combination o" elements that you will use to maret your

product. &here are "our elements Product, Place, Price and Promotion. &hey are

called the "our Ps o" the mareting mix.

M6Cath% i&1#tii1& th1 $u P! $ th1 ma21ti#' mi@:

•

P$&u6t - De"ining the characteristics o" your product or ser!ice to meet thecustomersR needs. A '$$& p$&u6t ma21! it! ma21ti#' b% it!1l b16au!1 it

'i"1! b1#1it! t$ th1 6u!t$m18 /uppose now that the competitors products

o""er the same bene"its, same +uality, same price. Xou ha!e then to

&i11#tiat1 your product with design, "eatures, pacaging, ser!ices,

warranties, return and so on. In general, di""erentiation is mainly related to

-&he design It can be a decisi!e ad!antage but it changes with "ads. 2or example, a

"un board must o""er a good and "ashionable design adapted to young people.

-&he pacaging It must pro!ides a better appearance and a con!enient use. In "ood

business, products o"ten di""er only by pacaging.

-&he sa"ety It does not concern "un board but it matters !ery much "or products used

by ids.

-&he >green> # "riendly product to en!ironment gets an ad!antage among some

segments.

• Pi61 - (o matter how good the product is, it is unliely to succeed unless the

price is right. &his does not ust mean being cheaper than competitors. *ost

people associate a higher price with +uality. =!en i" you decide not to charge

"or a ser!ice, it is use"ul to realise that this is still a pricing strategy.

Identi"ying the total cost to the user @which is liely to be higher than the

charge you maeA is a part o" the price element. Price means the pricingstrategy you will use.

B



• P$m$ti$# - &he main aims o" promotion are to persuade, in"orm and mae

people more aware o" a brand, as well as impro!ing sales "igures. Th1

u#6ti$# $ p$m$ti$# i! t$ a16t th1 6u!t$m1 b1ha"i$ i# $&1 t$ 6l$!1

a !al18 &his includes ad!ertising, personal selling @eg attending exhibitionsA,

sales promotions @eg special o""ersA, and atmospherics @creating the right

impression through the woring en!ironmentA. Public Gelations is included

within Promotion by many mareting people @though PG people tend to see it

as a separate disciplineA.

Promotion includes mainly three topics

-#d!ertisement It taes many "orms &, radio, internet, newspapers, yellow pages,

and so on.

-Public relations Public relations are more subtle and rely mainly on your own

personality. 2or example, you can deli!er public speeches on subects such as

economics, geo-economics, "uturology to se!eral organi)ations @ci!ic groups, political

groups, "raternal organi)ations, pro"essional associationsA.

-/ales promotion It includes "air trades, coupons, discounts and are lined to the sales

strategy.

• Pla61 $ Di!tibuti$# - 'ooing at location @eg o" a libraryA and where a

ser!ice is deli!ered. # crucial decision in any mareting mix is to correctly

identi"y the distribution channels. &he +uestion h$( t$ 1a6h th1

6u!t$m1 must always be in your mind. &he place is where you can expect

to "ind your customer and conse+uently, where the sale is reali)ed. Knowing

this place, you ha!e to loo "or a distribution channel in order to reach your

customer.

&he place is not where is located your business but where your customers are. &he

choice o" your distribution channel hea!ily depends on your product and place in the

producti!e process.

6



MARKETING O, CADBURY BRAND

PRODUCT STRATEGY

Cadbury%s range o" Chocolate is the premium brand under the product range o"

Cadbury%s Chocolates. Its an assortment o" a range o" raisins, "ruits and other "la!ours

with a Chocolate +uoting, the range are a translation o" di""erent up maret consumer

pre"erences into a premium range o" "la!ored chocolates. &he products has been

speci"ically placed in the segment o" assorted and gi"t chocolates, gi!es the consumer

the goodness o" chocolate with "la!ours o" honey, blac"orest, cashew etc. and its ad

says 9&oo ood to /hare:.

PACKAGING

During the *aret Gesearch I "ound out that the pacaging is also one o" important

reason buyers consider be"ore the buy chocolates. I "ound out that all the big players

eep on changing there pacaging a"ter e!ery six month or they change it according to

"esti!als and other di""erent occasions. &his is due to the "act that most o" the

chocolates buying decisions are impulse momentary decision when one sees a

chocolate in a shop then he maes an on the spot decision to buy or not to buy. *ost

o" the people decide to buy the chocolate only i" they "ind the pacaging attracti!e.

/o, what the companies bene"it the most by changing the pacaging e!ery 6-month is

that, the chocolate doesn%t go stale. It always loos lie a new product. 'ie in case o"

Celebration only a"ter seeing the pacaging o" chocolate buyers "eel tempted to buy it.

4



8



PRICE STRATEGY

S.8NO PRODUCT PRICE

1. D#IGX *I'K Gs10

. P=GK Gs. 10

. 2I= /&#G Gs. 10

7. /il GsBB

B. =*/ Gs. B

6. ;X&=/ Gs. 10

4. &=*P&#&I3( Gs. B

8. C='=;G#&I3( Gs. 100

$



PROMOTIONA. STRATEGY

In an attempt to le!erage the brand proposition amongst youth E who "orm the core

target segment E the company plans to undertae a series o" on-ground promotionalacti!ities combined with extensi!e outdoor ad!ertising and tele!ision campaigns.

&he new tele!ision commercial shows a towering syscraper as the montage. 2rom

there the camera )ooms straight to a mid close-up o" a teenaged girl who is anxiously

awaiting the arri!al o" her boy"riend. #s the boy"riend gets delayed, the scene gets cut

to the next shot where the girl rushes into a li"t. In a series o" +uic continuous !isual

cuts the girl is displayed as going "rom one "loor to the other. =!ery "loor the girl

opens the door she is sure to spot her boy"riend ready to welcome her with a bou+uet.

In the parting scene the girl "inally gi!es up and the boy hugs her and the lo!ers unite

"or a romantic retreat. &he camera immediately )ooms to a close-up o" the B /tar with

its striing new pacage.

#s an e""ort to communicate the core ethos o" the brand to a broader youth audience,

the company has also tied-up with youth ebsites such as (((8hu#'ama86$m,

(((8i#&%a86$m and (((86i6i#$86$m as a part o" the promotional strategy.

=laborating the rationale behind the current series o" integrated communication

initiati!es that the company has embared, the spoesperson o" Cadbury India

in"orms 93ur principle obecti!e is to moderni)e B /tar%s brand image and enhance

youth connect. &hrough e""ecti!ely communicating the "unctional attribute o" B /tar

along with the "un elements associated with chocolate, we intend to mae the brand

the 9top o" mind: energy enhancer in the youth%s li"e space. &hus maing B /tar the

constant companion o" the constantly charged Indian youth:.

&he company also plans to consolidate its penetration strength by means o" hardcore

distribution-dri!en product de!elopment strategies. &he distribution networing too

"orms a part o" the integrated brand de!elopment plan. &he impulse maret is growing

at the rate o" around 7 to 6 per cent annually.

0



BRANDS

Cadbury began its operations in 1$78 by importing chocolates and then re-pacing

them be"ore distribution in the Indian maret. #"ter B$ years o" existence, it today has

"i!e companies owned manu"acturing "acilities at &hane, Induri @PuneA, *[email protected], ;angalore and ;addi @<imachal PradeshA. #lso it has "our sales o""ices at

(ew Delhi, *umbai, Kolata and Chennai. *aor Products in its port"olio are

Chocolates

P.ACE STRATEGY

Gange o" Chocolate can be bought "rom almost anywhere? Cadbury%s has placed the

chocolates through its huge all India networ o" Distributor Getailers apart "romthat the range can be bought on line "rom a number o" websites including its own.

&he Placement o" has been eeping in mind the perishable nature o" chocolates, which

need a special "ree)er to sur!i!e, which is pro!ided by the company to the retailers.

&he shel" space !isibility is !ery important to achie!e the targeted o"" tae "or the

company there"ore the "ree)er is almost always !isible at retailers selling Cadbury%s

range also it can be stated that is almost always !isible.

Pu6ha!1 &16i!i$# b1ha"i$

&he maret today is "looded with chocolates o" !arious company%s brands. *ost o"

these chocolates come in di""erent weights and si)es. &he buyer has a !ery large range

to choose "rom. Di""erent buyers ha!e di""erent reasons "or there particular choice.

;ecause o" the large number o" chocolates in the maret it becomes !ery di""icult to

"ind out exactly why people buy a particular chocolate. &he best way to answer this

+uestion is to loo at how people buyY

&his is how the purchase decision beha!ior o" the buyer. &he purchase decision

beha!ior doesn%t only mean what to buyY ;ut also "rom where to buyY

Issues in the purchase decision beha!ior

i.A Predetermined decision

ii.A Point o" purchase decision

iii.A In"luencer

1



i8 P1&1t1mi#1& &16i!i$#:

Predetermined decision is when the buyer is decided about the choice o" what he has

to buy. &his pre-determined decision o" his a lot to do with *oti!ation, learning,

Income roup, 'i"estyle, /ocial Class and exposure to promotional campaigns.

=ach one o" these "actors has in"luence o" !arying degree on the purchase decision

beha!ior o" the buyer.

a8 M$ti"ati$#: *allow%s theory o" moti!ation can help us a lot in understanding the

purchase decision beha!ior o" buyers. 2or some people chocolates is the ideal way to

express lo!e and a""ection and belongingness "or someone @#mul%s J a gi"t "or

someone you lo!e.A

'ie in case o" *r. /aurabh, he buys and present chocolates to people who they lo!e

or with whom they want to build a relationship with.

/ome people eat chocolates because they "ind it a show o"" ind o" a thing "or eating

expensi!e chocolates, although these people are "ew in numbers but cannot be

neglected.

# student o" Delhi Public /chool thins, to eat expensi!e chocolates is necessary to

maintain his standard.

/ome people eat chocolates only because they lie it and "or no other reason at all?

brand loyalty is the strongest among these types o" buyers.

'ie *r.D.K./harma, a retired old man eats only B /tar and !ery o"ten because he

lies it. <e says he is addicted to it and can eat it anytime anywhere? he does not eat

any other chocolate.

&his case is !ery well identi"iable with the sel"-actuali)ation needs in the *eslow%s

theory o" moti!ation.

<ere *r. ;.K./ingh, is not concerned with what people thin o" him. <e eats the B-

/tar unconcerned "or !iews and perceptions about him ust because he enoys a B-/tar.

b8 .1a#i#': Pre!ious experience about the chocolate plays a !ery important role in

pre-determined decisions o" a buyer. #ny repurchase, acceptance, reection o" a



chocolate or a related brand will ha!e an e""ect on a person%s decision to buy a

chocolate.

68 .i1!t%l1 a#& S$6ial 6la!!: 'i"estyle and social class also play a !ery important

role in a buyer%s decision to buy a particular chocolate. &his is where positioning becomes a !ery important issue.

&8 I#6$m1 G$up &i!p$!abl1 m$#1%: &his is one o" the most important and

ob!ious reasons "or a buyer%s predetermined decision. # buyer is going to buy a

gi!en chocolate in a gi!en price range only when he has that much money to spend

@disposable moneyA or that his income is so much that he can usti"y the purchase.

18 [email protected]$!u1 t$ p$m$ti$#al 6ampai'#!: =xposure to promotional campaigns also

play a !ery important role in predetermined decisions "or purchase, e.g. repeated

exposure to a !ery appealing ad!ertisement is more liely to e""ect one%s purchase

decision beha!iour e.g. most o" the people who under want this test attributed their

decision on to good ad!ertising and promotional campaigns.

ii8 P$i#t $ Pu6ha!1 D16i!i$#:

Point o" purchase decision is where the buyer decides about the product on the spot.

&hese on the spot decision are basically dependent on

1.isibility

.Pacaging

.Price

*8 +i!ibilit%: &he product should be !isible so that the producti!e buyer can be

attracted and induced to buy.

-8 Pa62a'i#': Pacaging is !ery critical to a particular brand%s success or "ailure. &he

pacaging, the brand name, the logo etc. assist in the !isibility o" the product, maes

it stand out against the competition. *ost o" the buyers that underwent the perception

test attributed their decision to purchase a particular product to the pacaging. &he

importance that the companies ha!e been gi!ing to the pacaging o" their chocolates

is the strongest e!idence to this point.



SA.ES PROMOTION

I. Diwali Promotion

i"t Pac with special pacing was launched at !arious retail counters as well as

websites at a special mrp o" Gs100.

IIOuantity purchase scheme "or customers

3n purchase o" B pcs o" &emptations one special pen with Cadbury

inscription "ree.

III. Ouantity purchase scheme "or retailers

Getailers "or a one time purchase o" Gs8000 or more worth o" chocolates would get a

mini "ridge "or storing Chocolates in their shop which would remain with them as

company property till they retail Cadbury Chocolates.

I. Ouantity purchase scheme "or Distributors

ith purchase o" Gs B000 or more worth o" Cadbury Chocolates and a minimum o"

705 o" this as &emptations the distributor can claim an additional 5.

8 Pi61: Price is another !ery important "actor. /ome people decide on buying a

particular chocolate because they thin its price to be good according to the product,

some want to buy expensi!e chocolates. /o they go "or the ones, which cost lesser.

&hese decisions are dependent to a great extent on moti!ation and disposable money.

&his is why companies ha!e chocolates in di""erent weights and in di""erent price

slots.

iii8I#lu1#61!:

In"luencer is someone who can in"luence to buy a particular chocolate. In"luences can

be personal and non personal @non-li!ingA.

*8P1!$#al I#lu1#61!: &he personal in"luencers can be classi"ied into two

categories.

7



a8 Th1 !h$p211p1 F &he shopeeper acts as a !ery big in"luencer, he can mae your

decision to buy a particular chocolate by stressing on its strength or brea your

particular decision by discouraging your decision.

b8 Oth1! Pa1#t!< ,i1#&! 1t68 F &hese are the in"luencers lie parent or "riends

who can according to their perceptions, in"luence a buyer%s decision.

B

PG3DHC& P'#C=Pre-determineddecision

Point o" PurchaseDecision

In"luence

Personal

(onPersonal



CONSUMPTION CONSUMER

.i1!t%l1 Ch$6$lat1 C$#!umpti$#

Cadbury%s are marets are currently HK, Ireland, #ustralia and (ewLealand. &he Cadbury brand is !ery well nown in these marets and

consumers ha!e established patterns o" chocolate consumption. Ireland

has one o" the largest consumption rates in the world along with

/wit)erland. In Ireland alone, the a!erage person eats 8g o" chocolate

and 6g o" sweets each year. In ey areas such as these, the Cadbury brand has

secured signi"icant brand status.

In Ireland, Cadbury has identi"ied three ey consumer segments o" impulse%, tae

home% and gi"t%. &hese segments re"lect consumers% decision-maing processes. 2or

example, impulse purchases are typically products bought "or immediate

consumption, e.g. single bars. &ae <ome con"ectionery is generally bought in a

supermaret and is most o"ten dri!en by a speci"ic need. # speci"ic need or usage can

be an occasion, e.g.% I need something "or the lunchbox%. <ere consumers mae more

rational decisions, e.g. brand in"luence, price!alue relationship. &hese areas are

"urther subdi!ided, "or example the gi"t% sector comprises special occasions

@birthdays, Christmas, etc.A and toen or spontaneous gi"ts. I" mareters success"ully

identi"y and isolate consumer segments in this way, it becomes easier to target

products and ad!ertising in a more meaning"ul way to increase consumption

N1( P$&u6t! R1l16ti#' C$#!um1 .i1!t%l1!

N1( p$&u6t &1"1l$pm1#t has played a ey role in de!eloping marets as brands

stri!e to o""er something to a consumer that is truly di""erent. e tae a crumbly "lae

texture or honeycomb "or granted but, when introduced, they were remarably

inno!ati!e. Changing li"estyle patterns? eating on the go, and impulse snacing has

and continues to play a pi!otal role in the con"ectionery maret. Continued snacing

or gra)ing% has replaced traditional mealtimes "or many people.

6



&he Cadbury product range addresses the needs o" each and e!ery consumer, "rom

childhood to maturity, "rom impulse purchase to "amily treats. 2or example an

analysis o" the gi"t% sector highlights the importance o" de!eloping inno!ati!e

products to address speci"ic marets. Cadbury designs products to coincide with

Christmas, =aster, alentine%s, *other%s and 2ather%s Day and other calendar

landmars. Cadbury use mareting strategies such as the Choose Cadbury% strategy

to encourage a lin between chocolate and these e!ents ensuring there is a Cadbury

chocolate product suitable and a!ailable "or e!ery occasion.

/h% A&"1ti!i#' i! u!1& t$ p$m$t1 a Ba#& &he con"ectionery maret is "ull o" brands that need to "ight "or our attention. &he role

o" ad!ertising is to eep a brand in the mind o" the consumer. e are

constantly presented with countless brand images and messages on a

daily basis. During the li"etime o" a brand, companies will de!elop

mareting strategies that communicate brand identity and core !alues to

gain our attention. In order to eep its product competiti!e and

contemporary, these messages need to change o!er time.

Cadbury pro!ides one o" the most success"ul examples o" how an

ad!ertising message can be modi"ied "rom one campaign to the next to attribute new

4



!alues to a brand gi!ing consumers more reasons to buy Cadburys. <ealthy brand

e+uity or brand strength is critical in an impulse-dri!en, competiti!e maret.

#d!ertising plays a ey role in maintaining this strength. Cadbury employs all types

o" ad!ertising "rom the Internet to posters, "rom &, radio and cinema to print media.

&his same creati!e message is then communicated through point o" sale,

merchandising, pacage design and public relations.

=arlier this year, Cadbury introduced a new global mareting strategy called Choose

Cadbury%. &his strategy came about as a result o" extensi!e research into consumer

beha!ior and perception. It is a campaign that per"ectly illustrates how a brand can

e!ol!e and how di""erent messages can be communicated without losing the corestrength and brand !alues that are already established.

&he classic icons ha!e played a maor role in establishing the loo and "eel o" how

Cadbury%s ad!ertisements should loo through successi!e campaigns. &hese ey

loo and "eel% icons were hea!ily researched to ensure that the messages they impart

are always rele!ant to the Cadbury consumer. In depth customer research is

conducted to test% these messages. Gesearch results con"irmed that color recognition

o" dar purple is strongly associated with Cadbury. Its logo is readily recogni)ed and

scores a ninety six per cent recognition le!el alongside other global brands such as

Coca Cola and *cDonalds. &he glass and a hal" symbol, which plays a ey role in the

current Choose Cadbury% strategy, continues to communicate the +uality and superior

taste o" Cadbury%s chocolate.

&he central message o" the Choose Cadbury% strategy hinges on the established glass

and a hal" symbol. Is the glass hal" "ull or hal" emptyY Cadbury suggests that the glassis always hal" "ull appealing to our emotions. &here"ore, in choosing Cadbury we are

taing a decision to embrace the positi!e. &his optimistic metaphor is, according to

consumer testing in the HK and #ustralia, well understood amongst consumers.

In this Choose Cadbury% campaign, the product ingredient o" mil has been ele!ated

"rom a practical, rational plat"orm to an emotional one Cadbury can deli!er on

optimism, happiness and a "eel-good "actor. I" a brand can do all this, the decision to

purchase this brand o!er all other chocolate brands seems to be logical and ine!itable.

8



&he Choose Cadbury% strap line is a call to action designed to moti!ate us. e are

not expected to simply absorb the ad!ertising message, we are being called upon to

mae a conscious purchase decision. e are reassured that the Cadbury product will

remain unchanged, @Cadbury is Chocolate and it still tastes goodA, but we are gi!en

more reasons to remain brand loyal @Cadbury is Chocolate J "eels good i.e. positi!e,

upli"ting, mood enhancing, pro!iding enoyment and happinessA. #t no stage in the

e!olution o" the Cadbury brand has there been as much reliance on taing ownership

o" the emotional side o" eating chocolate as there is now. 3wning the emotional

territory "or chocolate helps Cadbury to ele!ate its product in the mind o" the

consumer. ith the Choose Cadbury% campaign consumers are being o""ered both

logical and emotional reasons to buy a Cadbury product as a "irst option on e!ery

occasion.

A&"1ti!i#' Dil1mma!

/ince di""erent chocolate-based products appeal to di""erent age groups, Cadbury

needs to o""er a wide product range. =ach product needs promotion, which implies an

ad!ertising budget "or each product line, which is !ery expensi!e.

Products, which are di""erent "rom each other, create an ad!ertising problem. 2orexample, a success"ul ad!ertisement "or Ra "inger o" "udgeR may boost sales o"

CadburyRs 2udge, but is unliely to li"t sales o" CadburyRs Curly urly.

3ne approach is to promote the "irm as a whole, that is, raise awareness o" CadburyRs,

in the hope that this in itsel" will boost sales across CadburyRs product range.

<owe!er, lie a pantomime castRs attempts to throw CadburyRs products to its

audiences, a catch-all approach can be rather hit or miss and may produce a poor

return.

#nother way around this is to promote chocolate consumption in general. &his

approach would re+uire co-operation between competiti!e producers and implies

some loss o" control "or CadburyRs.

3btaining good returns "rom ad!ertising has been made harder by the "ragmentation

o" tele!ision audiences. hen only one HK tele!ision channel showed

ad!ertisements, ad!ertisers new that their e""orts would be seen by a huge audienceand might well become a taling point nationwide. (owadays a "irm nows that to

$

http://popup%28%27glossary.php/?gID=170%27);




reach a high proportion o" potential customers it will need to place its ad!ertisement

with se!eral & channels. &his is expensi!e.

In line with its adding-!alue approach, the challenge to Cadbury promote more than

one product at once but without the large "inancial outlay normally associated with

such a !entureY # team was put together and was ased to produce a con!incing

proposal.

C$#!tu6ti"1 thi#2i#'

2rom within Cadbury came an interesting, attracti!e proposal based on some solid

propositions

• 2or children, consumption is lined to ha!ing "un. #ny consumption that

children regard as "un will also appeal to their parents, who do the spending.

• 3ther companies manage to associate consumption with children ha!ing "un.

2or example, Disney o""ers Disneyland, where, in the course o" ha!ing a good

time, children meet lo!eable characters whom they lin with the purchases

that parents mae on their behal", such as cinema ticets, !ideos, cuddly toys.

• ood ideas may be trans"erable. 2or con"ectionery consumption to be !iewed

not merely as pleasurable but also "un, the companyRs products need to tae on

some characteristics o" the entertainment industry.

• &he company has Ra place where chocolate is madeR - Cadbury orld - that is a

huge attraction to thousands o" !isitors each year. It is an asset that can be

"urther de!eloped. 3ut o" this line o" thining came a new Cadbury creation

Cadbury '#(D.

70







71



CHAPTER)

METHODO.OGY

RESEARCH DESIGN

*areting Gesearch is a process o" collecting and analy)ing mareting in"ormation

and ultimately to arri!e at certain conclusion. &he purpose o" this research is to

describe the research procedure. Gesearch *ethodology is the mean to plan out the

woring process or the course o" action to reach the obecti!e. It is extremely crucial

and holds the ey to the success o" the sur!ey.

Cadbury India ltd. is, which is mareting products ha!ing di""erent brands. &hus a

sur!ey method o" mareting research is essentially exploratory in nature.

*areting research ha!e its importance not only "or consumers maret but also it

sur!ey e""ecti!ely to the producer o" goods and ser!ices. &he use o" mareting

research in consumer maret may be explained on the basis o" "ollowing ser!ices

rendered by it.

1. It ascertains the position o" a company in speci"ied Industry.

. It indicates the present, "uture trend o" Industry and point out how the

company%s a""airs are being turned up.

. It helps in de!elopment and introduction o" new product.

DATA CO..ECTION SOURCES

Data collection is most important part o" research because the research is based on it.

&here are se!eral ways o" collecting data, which di""ers considerably in terms o" cost,

time and other resources at the disposal o" the researchers.

&he data collection method "or this research wor is "rom primary source as well as

secondary. &he sur!ey is carried out through a non-probability con!enience sampling

in Delhi through a structured +uestionnaire.

7



T%p1 $ Data

&here are two types o" Data

1A Primary

A /econdary

Pima% S$u61: /ource "rom where "irst hand in"ormation gathered directly are

called primary source and thus in"ormation collected is called Primary data.

In case o" abo!e study the primary source was consumer.

&he techni+ues a!ailable "or collecting primary data are

SAMP.E SIE

&he sur!ey is conducted among B0 respondents.

SUR+EY AREA

I ha!e done the sur!ey in Delhi region

S16$#&a% S$u61: &he source o" in"ormation already gathered "or some other

purpose are a!ailable is called secondary data, with regard to my study secondary

sources o" my study where records o" the company, maga)ines and papers. &he

/econdary data was collected on the basis o" re+uirement, con!eniences and

reliability o" the data. 3ut o" these I ha!e chosen +uestionnaire method to collect the

data because o" low cost, "ree "rom the bias o" other inter!iewer and respondent

7



CHAPTER);

DATA ANA.YSIS

Q.1 Which is favorite chocolatebrand?

Ca&bu% 9

Amul

N1!tl1

S#i621!

Oth1

=8 - D$ %$u li21 Ca&bu% Ch$6$lat1! a! 6$mpa1& t$ $th1 ba#&!L

O2a% O2a%: -

N$t mu6h: **

+1% mu6h: 9

N$t at all: -

LIKE AND DISLIKE OF CHOCOLATES

59%28%

11%2%

Very much

Okay Okay

Not much

Not at all

77



In the sur!ey it was "ound that about 605 respondents lied Cadbury chocolates !ery

much, 85 "ound them oay types, about 105 dint lie them much, whereas 5 o"

the group dint lie the chocolates. /ince most o" them are "ond o" Cadbury chocolates,

it is a reason "or Cadbury to reoice.

=8 H$( ma#% tim1! &$ %$u bu% 6a&bu% 6h$6$lat1!L

O#61 1"1% &a%:

-) tim1! a (112:

O#61 a (112: *-Sp16ial $66a!i$#!: -

BUYING PATTERN

Once every

day

33%

2-3 times a

week

30%

Once a

week

12%

!ecial

occasions

25% Once every day

2-3 times a week

Once a week

!ecial occasions

&he consumer buying pattern is !ery important "or a company to decide on the

distribution strategy other related strategies to position its product. Cadbury should

"ocus on increasing its distribution outlets.

7B



Q. 4 Which is your favourite CadburyChocolate?

Dairy *il 85

;ourn!ille 175

Per 05

B /tar 165Dairy *il /il 5

3ther 05

=8 /hat a1 th1 t$p attibut1! (hi6h 6$#!um1 thi#2! (hil1 ma2i#'

&16i!i$#L

76



PREFERENCES

"aste

28%

#rand

2$%

n&redients

25%

'acka&in&

20%"aste

#rand

n&redients

'acka&in&

• 85 respondents said taste was the most important "actor o" selection

• 45 respondents said brand was the most important "actor o" selection

• B5 respondents said ingredients "la!ors was the most important "actor o"

selection

• 05 respondents said pacaging was the most important "actor o" select

=8? /hat &$ th1 6$#!um1! thi#2 ab$ut th1 ta!t1 $ "ai$u! 6h$6$lat1

p$&u6t!< i# 6$mpai!$# (ith 6a&bu%L

74



CUSTOMER SATISFACTION WITH REGARD TO

TASTE

()*#+,-

53%N."/.

23%

)+/

10%

O".,

1%

()*#+,-

N."/.

)+/

O".,

&aste plays a !ery important role in deciding how satis"ied the consumer is. It is an

important ingredient o" product di""erentiation. *ore than B05 people were satis"ied

by cadbury%s taste

Q.7Do you believe chocolates iscommodity consumed by onlychildren n youngsters ?

78



yes ? 165

(o

-

875

7$



Q.8 Do you find Cadbury advertisementeffective ?

Geallycatchy

465

a!erage 5

(o impact 5

=8 9 /$ul& %$u p11 t$ !(it6h t$ a#$th1 ba#& i it i! 6h1ap1L

• Xes B5

• (o 75

• Indi""erent 75

PRICE SENSITIVITY OF CONSUMERS

No

23%

-es53%

ndierent

2%

No

-es

ndierent

M$!t $ th1 1!p$#&1#t! (11 pi61 !1#!iti"18

B0



B1



=8 * A#% 'i1"a#61 (ith Ca&bu% i# pati6ulaL

.8%

NO8$%

NO"(.,")N

5%

NO. OF GRIEVIANCES BEFORE THE

COMPANY

.

NO

NO" (.,")N

M$!t $ th1 6u!t$m1! ha& #$ 'i1"a#61!8

B



DATA INTERPRETATION

In the sur!ey it was "ound that about $05 respondents lied Cadbury chocolates !ery

much, 85 "ound them oay types, about 105 dint lie them much, whereas 5 o"the group dint lie the chocolates. /ince most o" them are "ond o" Cadbury chocolates,

it is a reason "or Cadbury to reoice.

&he consumer buying pattern is !ery important "or a company to decide on the

distribution strategy other related strategies to position its product. Cadbury should

"ocus on increasing its distribution outlets.

It is !ery important to determine the marets where the sales are maximum, in orderto mae a suitable distribution channel. It was seen that most o" the sales were made

through the irana shops and the rest through supermarets both.

It was seen that most o" the respondents @more than B05A pre"erred cadbury%s o!er the

other brands lie nestle and other "oreign brands. It shows that Cadbury is the

undisputed maret leader in terms o" both sales and brand perception.

Price is an important determinant o" how the product brand are going to be percei!ed.

In terms o" the price, Cadbury is pre"erred. 805 o" people thought that Cadbury

o""ered reasonable products and only 05 thought the products to be expensi!e.

&aste plays a !ery important role in deciding how satis"ied the consumer is. It is an

important ingredient o" product di""erentiation. *ore than B05 people were satis"ied

by cadbury%s taste.

#n ad!ertisement plays a !ery crucial role in increasing the sales o" chocolates which

is clearly seen in the abo!e graph Cadbury enoys a lot o" bene"it "rom

ad!ertisements.

/ales are normally higher during 2esti!als. /pecial occasions lie alentines Day,

2riendship day.

B



MARKETING STRATEGY

&he maret strategy o" the "irm is a complete and unbeatable plan or an instrument

designed specially "or attaining the mareting obecti!e o" the company. &he"ormulation o" the mareting strategy consists o" two steps -

1. S1'm1#tati$# Ta'1t Ma21t S1l16ti$#8

. A!!1mbli#' th1 ma21ti#' [email protected]

Ma21t !1'm1#tati$# a#& Ta'1t Ma21t S1l16ti$#

*aret segmentation and target maret selection has a intimate relationship withmaret strategy "ormulation.

&he company "ocuses on the "ollowing "actors while laying down the target maret.

1. GEOGRAPHICA. SEGMENTATION8

#. eographically the country can be di!ed into three sub segmentsE

Gural, /ub Hrban and Hrban.

In the "irst phase urban parts o" the country is targeted.

'ac o" in"rastructure, lie re"rigeration-not to !enture rural marets.

/emi-Hrban

It may be considered in the second phase. ithin URBAN INDIA< the cities with

1 millionZpopulation are targeted. &his will be undertaen in ;ombay, since it is a

high consumption city "or chocolates.

-8 D1m$'aphi6 S1'm1#tati$#8

AGE: 1 yearsZsegment o" the population is targeted.

,AMI.Y .I,E CYC.E:

B7



1. 1.Xoung/ingle or *arried @withwithout idsA

. *atriculate and college goers.

. *arried with no children under 18.

7. *arried old couplesold single.

B. =mpty nest couples[.

&he brand may position such that it "its all stages o" "amily li"e cycle.

INCOME:

&his segmentation may be o" households whose annual income exceeds G/. 1 'ahs.

8 Ph%6h$'aphi6 S1'm1#tati$#:

SOCIA. C.ASS: In terms o" psychograph the social class targeted is the educated

upwardly mobile middle and upper class.

P1!$#alit% Tait!:

&his segment consists o" "reay, "un lo!ing type o" people who lie to enoy li"e and

belie!e in tra!eling and ad!enture.

.i1 St%l1:

It may be aimed at those who "a!or buying con!enience products. &hey are also

willing to experiment with alternate products.

;8 B1ha"i$ual S1'm1#tati$#:

&his segment comprises o" people who lie to ha!e chances and want to try new

things.

.1a#i#') I#"$l"1m1#t:

&his purchase o" a chocolate is a low-in!ol!ement category. It is an impulse purchase

and decision to buy is not pre-planned.

BB



CURRENT SEGMENT TARGETING AND POSITIONING

TARGET:

C*D Its target is almost e+ually !ast as its segments i.e. ranging "rom ids and

youngster to adult willing to go on in "or traditional rich and sweet chocolates.

POSITIONING:

C*D wanted to position the product as real taste o" li"e. anted to mo!e chocolate

"rom the realms o" pure indulgence "or e!eryone. It tries to position itsel" as a

stimulant "or those who want to "ind the real taste o" li"e% through its ad!ertisement

by depicting emotional association in synchroni)ation with the product experience.

CMD

A'1 '$up i# %1a!

8-17 B\5

1B-0 15

0-B 75

B and abo!e 05

POSITINING:

&he positioning o" the !arious brands in the maret has been listed belowE

B6



CADBURY3S

BRAND

P3/I&I3(I( NEST.E3

BRAND

P3/I&I3(I(

Cadbury%s dairy mil

2ruits and nuts

Creamy bar

Goast almond

(uts mil

Cracle

;ourn!ita

2rutus

;ourn!ille

/il

9&he real taste o"

li"e:

Positioned as adult

as on impulse

anytime purchase.

- /el" expression

!alue attached

Classic mil

chocolate

Positioned as an

o""er double

enriched mil

chocolate

B starper Per positioned as

snacing

consumption

9&hori se pet

pooa:.

B star energy bar

reach "or the stars

Kit at

;arone

*unch

Classic

Chocostic

*ilybar

Positioned as a

snacing

consumption.

9<a!e a brea,

ha!e a it at

9positioned as

trendy cool

anytime snac

B4



CADBURY

BRAND

P3/I&I3(I( NEST.E

BRAND

P3/I&I3(I(

ems]clairs

;utterscotch caramels

o!ertunes nuttiesall

sil relish.

Positioned as!ariety, gi"ting

and taste

pre"erence.

CHAPTER)

,INDINGS AND THEIR IMP.ICATIONS

B8





• 'arge middle class "amily.

THREATS:

&he existing player in the industry may "eel threatened by entry o" prospecti!ecompetitors, by the *(C%s or big Indian players. 3ne o" the maor problems that are

"aced by the chocolate industry is the high price o" cocoa.

• <ealth problems especially teeth.

• 'ocal players.

• <igh cocoa prices.

60



SIGNI,ICANCE O, THE STUDY

2or any business !enture, human resource go hand in hand. 3pportunities

come and go but business comes "rom the ones, which are handled properly in termso" leads. 'eads "or any new opportunity are !ery important "or it to turn out a

pro"itable !enture.

Promotion plays a !ery important role in both the departments. Promotion

helps us to maret a product properly and also helps in increasing the sale o" the

product as compared to competitors.

MANAGERIA. USE,U.NESS O, THE STUDY

• <elps to ha!e human resource experience

• <elps to deal with di""erent customers

• <elps to o!ercome the obections o" the customers

• <elps to understand the problems o" agents in a broader prospect

•

It pro!ides a plat"orm where managerial role can be played e""ecti!ely ande""iciently

61



CHAPTER)?

.IMITATIONS O, THE STUDY

• ;ecause o" time constraint sample si)e was the scope o" this proect is limited to

areas o" (ew Delhi only.

• &he estimates are done on a!erage basis.

• &he proect had scope "or "uture research, which was beyond my resource due to

time constraint and wor pressure.

• ;ecause o" time constraint sample si)e was restricted on B0.

• /ome o" the respondents did not respond due to lac o" time.

• /ome were biased towards their brand, which might not be gi!ing them good

ser!ice.

• /ome times e!en i" the retailers were not using Cadbury but he used to say that the

brand he is using is Pepsi because o" low awareness le!el o" other brands.

.IMITATION S O, THE ORGANIATION

1. &he company plans its raw material re+uirement "rom the sales proection, which

was done by the mareting department o" the company. #t the end o" e!ery

month, mareting department creates its budgeted sales "or the existing product

and new products. *areting department creates its budgeted sales by

considering demand o" the product, actual sales in the pre!ious month and the

sales in the current month o" the pre!ious year.

. Production, Planning and *aterial Control Department @PP*CA is based on the

sales proection and calculates the re+uirement o" the raw material "or each

department "or each product. PP*C department authenticates raw material

issued.

6



. #"ter the PP*C Department calculates the re+uirement o" the raw materials, the

purchasing department places an order to the !endor or supplier "or each

department. &hen the supplier dispatches the material in the "actory premises.

7. Company is "ollowing batch production process. &hey assign the batch number

and lot number so that i" any problem occurs while it is consumed they can detect

the "ault.

6



COMPETITOR IN,ORMATION

Indian chocolate has three maor maret players Cadbury India '&D. dominating the

maret by capturing 415 o" the marets share, "ollowed by (estle ha!ing 5 o"

marets share, #mul ha!ing a niche maret o" 75 and remaining 15 was other

marets.

Cadbury India ltd "ace the tough competition "rom (estle howe!er when !iewed in

light o" the historical growth rates in earnings, Cadbury India appears to posses a

superior trac record. 3!er the past three years to 000, Cadbury India has de"initely

outpaced (estle India, both in pro"it and sales growth.

/ince 1$$8, Cadbury India has managed a compounded annual sales growth o" around

18 per cent and an impressi!e pro"it growth o" around 70 per cent. In contrast, (estle

IndiaRs sales ha!e grown at a sedate 7 per cent while pro"its ha!e grown at around 18

per cent. (estle IndiaRs sedate growth is partly to the cyclically o" its co""ee business.

I" one goes entirely by the trac record o" the past three years, Cadbury would deser!e

a better share than (estle. <owe!er, the +uestion is one o" whether Cadbury will be in

a position to sustain its impressi!e growth rates o" past three years.

67



CHAPTER F >

RECOMMENDATIONS AND SUGGESTIONS

RECOMMENDATIONS:)

1. Chocolate should be a!ailable e!erywhere.

. &hey should introduce calorie "ree or low calorie chocolate.

. &hey should pro!ide pacs o" all si)es so that it can be a""orded by anyone.

7. &he chocolate should ha!e attracti!e pacaging.

B. &he chocolate should be energi)ing and healthy to eat.

6. Pro!ide di""erent taste o" chocolates.

4. In"orm about the ingredients on bac o" all pacs. &hey should mae absolutely!egetarian chocolates.

8. Price should be ept low e!en when the chocolate is success"ul.

$. It should be able to replace snac i" consumed i.e. hea!y when eaten.

Su''1!ti$#! $ A&"1ti!i#'

CD* is undeniably the leader brand o" not only the Cadbury%s baset but also thechocolate segment as a whole and is in a sense almost generic to the category in the

country. CD* must there"ore through its media posture be the brand champion and

carry the brand message. ith hal" the ad!ertising spends o" Cadbury%s, CD* must

build on the brand e+uity through a premium mareting strategy that re"lects in the

media communication and positioning as well. &his would translate to large and

continuous brand presence. &ele!ision is the ad!ised primary medium o"

communication as it has mass reach, a "a!orable image, high prestige !alue and isattention getting while ha!ing low cost per exposure "or a high absolute spend.

&he media will go hand-in-hand with the ad!ertising in reaching the expanding target

audience the brand is reaching out to. <erein, the media must also supplement the

youth"ul exuberance and rebelliousness o" the ad!ertising communication. Caution

should be maintained not to dent brand e+uity while increasing penetration in smaller

towns by using locally targeted media channels in a manner that will allow

capitali)ation o" the premium nesses o" the brand.

6B



CHAPTER)

CONC.USION

• &he chocolate con"ectionery maret elicits conscious and unconscious "eelings

o" passion, loyalty and enthusiasm. #lmost 805 o" chocolate purchases are

made on impulse. ;uyers generally decide +uicly which con"ectionery

product to buy with almost hal" o" purchase decisions made within 10 seconds

o" arri!ing at the con"ectionery "ixture in the store. ;rands play an important

role in the chocolate con"ectionery industry. # brand is a name, mar, or

"eature, which distinguishes one product "rom another. # good brand

e""ecti!ely guarantees that it will deli!er all o" the +ualities that the consumer

associates with it.

• 2or many people, chocolate is Cadbury, and no other brand will do. &his

consumer loyalty is critical because o" the !alue o" the chocolate

con"ectionery maret and because, in all marets, a small number o"

consumers account "or a large proportion o" sales. 'oyal customers are the

most !aluable customers to ha!e because they will buy your product o!er ando!er again. Gesearch data shows that the Cadbury brand e+uity is highly

di""erentiated "rom other brands with consumers. ;rand e+uity is the !alue

consumer loyalty brings to a brand, and re"lects the lielihood that a consumer

will repeat purchase.

• &his is a maor source o" competiti!e ad!antage. &he Cadbury umbrella brand

has endured in a highly competiti!e maret, and has established the lin, in the

mind o" the consumer, that Cadbury e+uals chocolate. &he Cadbury brand is

associated with best tasting chocolate. *areting managers at Cadbury are

woring to ensure this association is continually de!eloped through their

RChoose CadburyR mareting strategy. Key concepts o" +uality, taste and

emotion underpin the Cadbury brand. &hese core !alues help to di""erentiate

Cadbury "rom other brands and ensure its competiti!e ad!antage.

66



,INDINGS

• &he Cadbury brand has pro!en itsel" to be a leader in a highly !olatile and

competiti!e maret because it has success"ully established, nurtured and

de!eloped its umbrella brand and growing port"olio o" products. Perhaps !ery"ew product categories in India ha!e seen as much excitement generation,

widening o" appeal and repositioning as chocolates. Cadbury IndiaRs> has been

success"ul in re!amping its brand port"olio and its repositioning e""orts. It has

rein!ented and re!amped its brand port"olio, strengthened its distribution

networ and relied hea!ily on promotions and ad!ertising - while launching

and relaunching brands.

• Cadbury%s strategy to attract consumers is somewhat uni+ue in a sense, instead

o" "ocusing on the product? it sees to tap into emotions normally associated

with chocolates. &hey ha!e also adapted their strategies to the uni+ue demands

o" the Indian retail sector. &he strategy has clearly pro!ed success"ul, as they

ha!e been able to build and maintain a leadership position in the maret with

many loyal customers.

• Cadbury introduced a new global mareting strategy called RChoose CadburyR.

&his strategy came about as a result o" extensi!e research into consumer

beha!iors and perception. It is a campaign that per"ectly illustrates how a

brand can e!ol!e and how di""erent messages can be communicated without

losing the core strength and brand !alues that are already established

• (ew product de!elopment has played a ey role in de!eloping marets as

brands stri!e to o""er something to a consumer that is truly di""erent &he

Cadbury product range addresses the needs o" each and e!ery consumer, "rom

childhood to maturity, "rom impulse purchase to "amily treats. 2or example an

analysis o" the Rgi"tR sector highlights the importance o" de!eloping inno!ati!e

products to address speci"ic marets. Cadbury designs products to coincide

with Diwali, rashabandhan, , *otherRs and 2atherRs Day.

64



• &he chocolate con"ectionery maret is "ull o" brands that need to "ight "or our

attention. &he role o" ad!ertising is to eep a brand in the mind o" the

consumer. e are constantly presented with countless brand images andmessages on a daily basis. During the li"etime o" a brand, companies will

de!elop mareting strategies that communicate brand identity and core !alues

to gain our attention. In order to eep its product competiti!e and

contemporary, these messages need to change o!er time.

• Cadbury pro!ides one o" the most success"ul examples o" how an ad!ertising

message can be modi"ied "rom one campaign to the next to attribute new!alues to a brand gi!ing consumers more reasons to buy Cadburys. Cadbury

employs all types o" ad!ertising "rom the internet to posters, "rom &, radio

and cinema to print media. &his same creati!e message is then communicated

through point o" sale, merchandising, pacage design and public relations.

• ;esides ad!ertising and sales promotion, brand perception by consumers gets

a""ected by se!eral other "actors lie pacaging, distribution e""iciency, a"ter-sale ser!ice @where applicableA, speed o" response to customer complaints.

/hopping experience and deli!ery o" the !alue proposition are also among the

contributing "actors. Cadbury India has also wored is still woring on

these "actors to success"ully position its brand as the topmost brand o"

chocolate.

• Cadbury India expects strong growth in India in "uture. &he company plans to

increase the "ranchise o" its existing brands and continue to explore new

product opportunities including adacent maret opportunities. Cadbury India

is also looing "or more opportunities in the /##GC region.

68



B IB.IOGRAPHY

B$$2!

1. ;elch.=.eorge and ;elch. #. *ichael, 9#d!ertising and Promotion9/ixth =dition 7,001, page no-68, &ata *craw <ill.

. Kotler Philip,: *areting management 9=le!enth =dition, India, pageno-184 Pearson =ducation.

. (eelamegham /, *areting in India @cases readingsA, =dition ,1$$$ page no-6B

7. (argundar Gaendra Panda &apan, *areting strategies "or emergingmarets,rd edition, page no-167

B. erma <arsh ;rand management@ text cases A =dition 7,006,page no-B

Ma'ai#1!

/uper brands India business world maga)ines,"eb 010 issue no-x!iii ,pageno-$

/1b!it1

1. httpwww.cadburyindia.comcadbury^home

. httpwww.indiain"oline.comcadbury.report

. httpwww.nestle.co.inper

7. httpwww.business000.comannualreport^cadbury.htm

B. httpwww.brandwee.comcadbury^Bstar

6. www.wiipedia.com

6$

http://www.brandweek.com/cadbury_5star

http://www.brandweek.com/cadbury_5star



ANNEURES

=u1!ti$##ai1

MARKET SUR+EY ,OR CHOCO.ATES =UESTIONNAIRE ,OR

CONSUMERS

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ender ^^^^^^^^^^^^^

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twice a week

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40



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'erk

5 tar

*airy 0ilk ilk

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D ,* fi&' Ca'%*!, #asi$, ava$ia%$# " )*!chas# (

-es

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H+ ' ,* fi&' "h# 0*a$i", f Ca'%*!, chc$a"# (

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Wi$$ ,* s"i$$ )!#f#! Ca'%*!, if "h# )!ic#s a!# i&c!#as#' (

-es

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No im!act

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