Mondelez India (Cadbury) ppt

Summer Training Report on

INSTITUTIONAL SELLING OF SELECTED CADBURY’s PRODUCTS FOR DIWALI GIFTING

(Delhi/NCR )

Presented by: Rohit Pandita

PGDM(2014-16)

INDUSTRY OVERVIEW

FMCG sector overviewIndia’s FMCG industry is expected to grow at 12 per cent in 2016, reaching the sales figure of US$ 49 billion. The FMCG sector has grown at an annual average of about 11 per cent over the last decade. The overall FMCG market is expected to increase at (CAGR) of 14.7 per cent to touch US$ 110.4 billion during 2012-2020, with the rural FMCG market anticipated to increase at a CAGR of 17.7 per cent to reach US$ 100 billion during 2012-2025.Food products is the leading segment, accounting for 43 per cent of the overall market. While there are several products targeted to urban Indian consumers, the sweet spot lies in serving the 700 million-strong group of consumers in rural India.

Latest from Mondelez International Irene B. Rosenfeld is the current Chairman & CEO and Chandramouli Venkatesan is MD & Exective Director for India. With value-driven metro markets already in its grip, chocolate maker Mondelez India Foods Pvt. Ltd is looking at expanding its rural

reach to boost sales volumes. The chocolate industry in India, valued at INR 58bn (~USD 966mn) in FY 2014, has been growing at a CAGR of 15% over the last three years. ValueNotes estimates that the industry will be worth nearly INR 122bn (~USD 2bn) by FY 2019, growing at a CAGR of 16%.

• Mondelez India, formerly known as Cadbury India Ltd, is seeking to boost growth, which has fallen to single digits despite price

hikes as Indians consumed fewer chocolates in the first half of 2015. Chocolate consumption declined 2% in terms of volume in the first half of 2015, according to industry analysts.

Mondelez India will now focus on reaching rural retail outlets across the nine top states where it has a presence to tap under-penetrated markets, and will push premium chocolates in metros and other top cities to boost value growth, said Prashant Peres, director (marketing - chocolates).

According to research by consulting firm Value Notes, Mondelez is working on tapping about 80% of all the nine states it is present in, reaching villages with a population of between 5,000 and 10,000. This should be completed within the next couple of years.

Mondelez dominates the chocolate market in India with a 55.5% share in value terms in 2014, according to a report by market research firm Euromonitor International. Nestle India is the second largest chocolate company, with a 17% market share by value. The chocolate market in India was worth Rs.10,000 crore in 2014, according to the study.

• After Kraft Foods in 2009 acquired Cadbury India, which is now Mondelez India Foods, the firm reported growth of more than 30%

in the initial years. Before the acquisition, its growth was around 20-23% annually.

MAJOR PLAYERS IN INDUSTRY

Founded in 1866, Nestle is a Swiss transnational food and beverage company & is the largest food company in the world measured by revenues. Presence across India with 8 manufacturing facilities and 4 branch offices. Direct reach to 2 million outlets in India via distributers.

Introduced in 1982, a spherical chocolate sweet introduced by Italian chocolatier Ferrero SpA.Other products include Kinder Joy, tic tac, Nutella.In 2004 ,Ferrero India incorporated in India. The company has its corporate office in Pune and 4 regional offices at all metros with a nationwide robust distribution network.

Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation Ltd. Strong distribution network operating through 56 Sales Offices and has a dealer network of over 10000 dealers & 1 million retailers.Is India's largest food product marketing organization with annual turnover (2014-15) US$ 3.4 billion.

Founded in 1911 ,an American global manufacturer of confectionery pet food, and other food products with US$33 billion in annual sales(2014). Lately Mars, Incorporated intends to invest over $160 million in the new factory at Pune which will produce Mars’ world renowned brands Snickers™ and Galaxy™.

FINANCIAL DATA

Cadbury's Dairy Milk

Parent Company Mondelez International

Category Chocolates

Sector Food Products

Tagline/ SloganThe 'Real Taste of Life' ; 'Kuch Meetha Ho Jaaye' ;'Meethe mein kucch meetha ho jaye;

USP Biggest global brand name in the world of chocolates

STP

SegmentPeople looking to have a chocolate which is high in quality and moderately priced

Target Group All age groups Lower, middle and upper class people

Positioning Something sweet' after meals

PLC OF Cadbury Dairy Milk

SWOT ANALYSISSTRENGTH WEAKNESS OPPORTUNITIES THREATS

Brand name, brand equity and Brand loyalty

Rural Distribution Rural Markets Health consciousness on the rise

Placement and distribution across the world & Powerhouse brands and Products

Adulterating Quality of the product on few occasions

New Tastes Cost and price increase

Positioning as gift & Promotion

Limited Product portfolio CSR Decreasing importance of festivals

PRODUCT RANGE & PRICES

Item Weight MRP(Rs.)

Celebrations 82.5 gms 50

Celebrations 153 gms 100

Celebrations 212.5 gms 150

Rich Dry Fruit

Collection 132 gms 250

Rich Dry Fruit


Rich Dry Fruit


Silk Gift Pack 250 gms 275

Cross Category 509.69 gms 400

Cadbury Glow 160 gms (16 units) 425

Cadbury Glow 240 gms(24 units) 650

OBJECTIVES• Research Objective To find out what respondents expect from confectionary products.

To provide the company with information of corporates’ budget and reasons for opting for a particular confectionary.

To know the most preferred chocolate company.

To study the buying pattern in the fmcg industry with a special focus on Mondelez India Foods Ltd

• Research Scope To evaluate and analyze the findings so as to present a clear picture of trends in the fmcg sector.

A large number of players have entered the market and gained market share in this rapidly improving market. The study deals with Mondelez India

Foods Ltd in focus and the various segments that it caters to.

• OBJECTIVE OF STUDY This study has to analyze the competitive environment of gifting during Diwali in Delhi/NCR market. This study helps to know about the corporate buying behavior and its influencing factor. This study helps the company to identify the right marketing mix for the product. This study helps the company to formulate the discounts over the product as per the consumers’ expectation. This study helps the company to improve their strategic formulation and decision making process To study the consumer buying behavior and customer’s perspective of Cadbury’s with its competitors. To know the effectiveness of product catalogue handed over to them.

RESEARCH PLAN

Sampling Plan

Sampling Unit Existing and expected customers of the company

Sampling Size 100

Research Instruments Structured Questionnaires

Target Area Delhi/NCR

Sources of Data

Primary Data Surveys Informal Talks with Employees Discussion with clients Secondary Data Annual Reports Websites Journals Company Literature Company Brochures

Research Design

Type of research Descriptive & Exploratory Research

Scope of research Delhi/NCR FMCG Market

Beneficiary of the study Company : Mondelez International

Method of data presentation Description, Tabular forms and Graphs

DATA ANALYSIS & INTERPRETATION

Chocolate Market Share of Mondelez International (INDIA)

Traditional Trade and Modern Trade are the two ways through which the company coordinates the sales b/w the distributors & corporates. Big bazaar, Vishal mega mart, & other hyper markets come under modern trade.

This pie chart only indicates the percentage number of companies which choose to go with the mentioned companies for gifting purpose. It doesn’t reflect the share of percentage grab of retail value sales by the companies which can be more or less.

Interpretation•Mondelez International are having the highest market share in India market followed by Nestle. Since, its inception Cadbury has brought its products to its customers as per their changing taste & appetite. The company is focused on a few types of products within the same consumer segment, which helps it to focus on quality and consistency. However, it is using those products as the basis to introduce new flavors and seasonal product. It is a very fast growing company solely focusing on providing the best experience to its customers by introducing new variants of the products and providing a quality product at reasonable rates which attracts the consumers. Being started in 1948, Cadbury made a huge success and captured its market share of 66% in India.•As the project dealt with the Diwali gifting for corporates Nestle being the competitor of Mondelez Inc. was nowhere in the scene when it came to preference by the corporates. Rather it was astonishing to observe old players in the market viz. Haldiram’s, Bikanervala gave hell of a competition when it came down to gifting. •The average budget of the companies tapped for gifting was Rs.350-400 per employee. So based on product catalogue, various items were recommended as per the budget. The companies with lower budget (less than Rs.250) were more difficult to close , though the probability of closing the deal with these companies was high given there were more than 50% companies with this budget. The main concern was the quantity against the price. Others concern were that of discount, some of the media houses like Star News, Aaj Tak wanted to barter the deal against the advertisement. And this is where the Haldiram’s, Bikanerwala & Ferrero Rocher played the spoiler

• The companies with workforce mainly the labor class choose not to go with the Cadbury gifting, rather they choose going with the traditional sweets because of its preference by the people belonging to the lower strata.

FINDINGS

The corporates were well aware of the various chocolate companies and their products. And the fact that Cadbury

is eating monopoly in the market, so there was no hesitation when it came down to choose its products.

With various advertising campaign, social media campaigns and other promotional tools Mondelez India is

ensuring that they make dent into untapped markets by educating prospects.

Another heartening trend was in terms of people viewing chocolate offering as a gifting pack instead of offering

traditional sweets. A number of big MNC’s opted for Cadbury gifting in corporate culture as it was easy to

negotiate with them.

Since Mondelez India is a leading market leader therefore it has become easy for them when it comes to b2b

sales and secure a good position by paying greater attention to the disconts part provided to their customer and

thereby forming a long and trusted relationship.

CONCLUSION• The project given to me is titled as ‘Institutional Sales for Diwali Gifting’. The project has been a highly beneficial learning experience for me. As the project was in a FMCG company which was a total core sales activity during the internship period. I came to know the dynamic and challenging nature of this sector. People in general have been impressed by the marketing and advertising campaigns of fmcg companies.

•

•The sales strategy of Mondelez India Foods Ltd is very unique which mainly deals with the push strategy. As a part of the company and being an intern I was able to understand the whole sales process when I myself had gone on the field. I learnt how the sale of a product is done, how the pitching is to be made to the corporates, how to tackle their objections and most importantly how to convince them and close the deal. I also learnt that retaining our customer is also the vital part of whole sales process by regular follow ups and lastly, what is that the corporates want and what is that they don’t want.

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•A general impression that I gathered during data collection was the immense awareness and knowledge among people about various competing companies and their products. The quality product of Cadbury since its inception has made it a big brand in the market and the consumers demand makes it a strong player in the fmcg industry & chocolate category in particular.

RECOMMENDATION

• Prominent percentage of the respondents consider chocolates as the best alternative over traditional sweets. These potential

customers should be targeted and made aware of the competitive edge and benefits of selecting chocolates for gifting.

• Nano campaigning along with flighting couple of months before the festival enabled by social media technologies aimed at

corporates.

• An insight from the survey shows that the respondents included in the research value the quality as well as the brand name to

gain the goodwill of the employees. Though the percentage of such respondents does not strike the highest figure, the

company can find an opportunity to enhance profits from such customers.

Since Mondelez India is leading in terms of market share, it should be easy for them to penetrate into the rural market and

secure a good position if they pay greater attention towards emotional branding thereby forming a long and trusted

relationship.

The main issue that needed to be dealt with was the availability of stocks. Many corporate deals were lost due to non-

availability of specific stock. So the next time when pitching a product, it should be made sure it is in stock.

In the purchase decision journey of chocolates for gifting the influence group consisting of the top management which play

a vital role. Therefore, strategies to convince the influence group should be as strong as that for the buyer himself.