Analysis of Cadbury Chocolate in the Market With Its Competitors

8/13/2019 Analysis of Cadbury Chocolate in the Market With Its Competitors

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A

Dissertation Report

On

ANALYSIS OF CADBURY CHOCOLATE IN

THE MARKET WITH ITS COMPETITORS

Submitted By :-

NIKHIL KUMARMBA IV Sem. (2004-06)

Enrollment No. .

Under the Guidance of :-

PROF. ASIF HALEEM

INSTITUTE OF TECHNOLOGY AND SCIENCE

MOHAN NAGAR, GHAZIABAD (U.P.)


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TABLE OF CONTENT

ACKNOWLEDGEMENT EXECUTIVE SUMMARY INTRODUCTION OBJECTIVE OF RESEARCH RESEARCH METHODOLOGY ANALYSIS & OBSERVATION DATA ANALYSIS AND FINDINGS CONCLUSION RECOMMENDATIONS BIBLIOGRAPHY QUESTIONNAIRE


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Declaration by the Candidate

I NIKHIL KUMAR student of MBA IV of Institute of Technology &

Science (I.T.S), Ghaziabad (2004-06) bearing enrollment number

_______________ hereby declare that the research project report titled

ANALYSIS OF CADBURY CHOCOLATE IN THE MARKET WITH ITS

COMPETITORS

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

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

diploma.

Date: ( )

Sign of candidate


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ACKNOWLEDGEMENT

The successful completion of any work would be always be

incomplete unless we mention the valuable cooperation and

assistance of those people who were a source of constant guidance

and encouragement , they served as bacon light and crowned our

efforts with success.

I would like to extend my sincere gratitude to our Prof. Asif Haleemfor his guidance.

NIKHIL KUM R


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PREFACE

The Cadburys Indias number one chocolate is able to share with

their market insights based upon unparallel breath of chocolate

experience.

The merge in 1969 with Schweppes and the subsequent development

of the business have led to Cadbury Schweppes taking the led in both,

the confectionery and soft drink market Intec UK and becoming a

major force in the international market. Cadbury Schweppes today

manufactures product in 60 countries and a trade in staggering 120.

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

chocolate and confectionery industry. A descriptive research

procedure had been applied to come to the conclusions of the project.

A detailed questionnaire had been prepared and the responses of the

concerned people had been collected for the analysis. The project later

concluded in recommending the market potential of the chocolate and

confectioneries.


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EXECUTIVE SUMMARY

TITLE:ANALYSIS OF CADBURY CHOCOLATE INTHE MARKET WITH ITS COMPETITORS.

Rationale of study:

The Cadburys Inc has taken the opportunity to offer us a broader

view of chocolate category. The Cadburys Indias no.1 Chocolate is

able to share with their market insights based upon unparalleled

breath of chocolate experience.Cadbury has grown from strength to

strength with new technologies being introduced to make the

Cadbury confectionary business, one of the most efficient in the

world.This report study about market share and different strategy

with its competitors.

Objective:

To analyze the marketing strategies of the company with

To determine the market share of Cadbury . To demonstrate the marketing strategies of Cadbury India Ltd.


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Importance:

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

research on the Cadbury chocolate and its present competitors

in the market.

2)This report shows the problems associated with the Cadbury

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

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

industry.

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

confectionary industry.

5)This report helps in knowing market position of different

confectionary industry.

Research Methodology:

The research conducted by Exploratory Research this type of research

is Qualitative and Quantitative. Qualitative refers to the characters of

the data or process by which the data are gathered.

The research process consists of a series of closely related activities.

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

has been undertaken, how the research problem has been defined, in

what way and why the hypothesis has been formulated, what data

has been collected and what particular method has been adopted and

a host of similar other question are usually answered when we talk of

research methodology concerning a research problem or study.


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Sampling:

The data was to be collected only from the Consumers and Retailers.

A questionnaire was prepared and interviewing with Retailers and

Consumers.

A decision has to be taken concerning a sample unit before selecting

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

Size of Sample:

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

universe to constitute a sample size. The survey was conducted of 50

outlets.

Analysis:

The data was tabulated manually and was also analyzed manually

excel was used to make graphs and pie chart.

26% of people are interested in eating chocolate and 74%are not eating.

The Cadbury brand chocolate 75% of people prefer after thatNestle, Amul and others are take place.

Most of the people buy chocolate from superstore and afterthat from retail or movie mall.

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

Dairy milk and 5 star is most famous product of Cadbury. Cadbury chocolate is very easily available in the market.


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Conclusion:

This company project has demonstrated CADBURYS MARKETING

AND COMPETITIVE STRATEGIES that has proved to be extensive

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

competitive advantage.

In this project it possible to see the success of Cadburys in its indorse

its strong potential to continue to do well.

Recommendations:

Maintain dominance in chocolate, confectionery and marketleadership in blown drinks.

New channels such as gifting, child connectivity and value formoney offering to be the key growth drives.

Grow volume sales at least 20% p.a. over the next years. Achieve the goal of best manufacturing location in Cadbury

Schweppes world for Dairy Milk and clairs.

One new major product launch every year.


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INTRODUCTION

The Cadburys Inc has taken the opportunity to offer us a broader

view of chocolate category. The Cadburys Indias no.1 Chocolate is

able to share with their market insights based upon unparalleled

breath of chocolate experience.

Cadbury has grown from strength to strength with new technologies

being introduced to make the Cadbury confectionary business, one of

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

and the subsequent development of the business have led to Cadbury

Schweppes taking the led in both, the confectionary and soft drink

market Intec UK and becoming a major force in the international

market. Cadbury Schweppes today manufactures product in 60

countries and a trade in staggering 120. The Cadbury story is a

fascinating story of a family business that grew in one of the biggest,

most loved chocolate brand in the world. A story that you will

remember as the story of The taste of life.

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

chocolate and confectionery industry. A descriptive research

procedure had been applied to come to the conclusions of the project.

A detailed questionnaire had been prepared and the responses of the

concerned people had been collected for the analysis. The project later

concluded in recommending the market potential of the chocolate and

confectioneries


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joint consultation being just one of the introduced by the pioneering

Cadbury Brothers.

1899In this year the business private limited company Cadbury

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

interwar years onward ahs been rapid. Chocolate has moved being

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

1905Cadbury has many famous brands with one of major success

story being Cadburys Dairy Milk chocolate launched in 1905, today

Britains favorite moduled chocolate bar.

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

market, employing the most advanced processing technology and

management information and control techniques. The company is the

confectionary division of Cadbury Schweppes plc which is major force

in the confectionary and soft drinks international market.

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

confectionary with impressive range of famous brands.

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

beginning as generations have worked to produce chocolate with that

very special taste, smoothness and snap, so characteristics of

Cadburys chocolate.


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Design Development

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

adding milk powder paste to the dark chocolate recipe of cocoa mass,

cocoa butter and sugar. By todays standards this chocolate was not

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

milky enough for public tastes.

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

continental manufactures, not only the French with their fancy

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

chocolate. Led by George Cadbury junior, the Bourneville experts set

out to meet the challenge. A considerable amount of time and money

was spent on research and new plant design to produce the new

chocolate in much large quantities.

A new recipe was formulated fresh milk and new production processes

were developed to produce milkchocolate not as merely as good asbut better than the imported milk chocolate.

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

what was to be Cadburys top selling brand was launched. Three

names were considered Jersey Highland Milk and Dairy Maid. Dairy

Maid became Dairy Milk and Cadburys Dairy Milk with its unique

flavor and smooth creamy texture was ready to challenge the Swiss

domination of the milk chocolate market.

By 1913 it had become the companys best selling line and in the mid

twenties Cadburys Dairy Milk gained its status as the brand leader, a

position that it has held ever since. Today more than 250 million bars

of Cadburys Dairy Milk are made every year and sales reach over 100

million Pound in value.


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

considerable strides have been made in manufacturing technologies,

the recipe for Cadburys Dairy Milk its glass and a half of full cream

milk in every half pound produced is still basically the same as when

it was launched.

Cadburys Dairy Milk Story

Chocolate has been enjoyed by successive generation since the

manufacturing process was developed in the Victorian Times. Good

chocolatiers is an art form depending on recipe traditions, which have

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

balanced recipe in which all the ingredients combine to produced

chocolate with all the characteristics that enable full delicious taste to

be enjoyed by the consumers.

By todays standards the first chocolate for eating would have been

considered quite unpalatable. It was the introduction of the VanHouten cocoa press from Holland that was the major break through in

the chocolate production as it provided extra cocoa butter needed to

make a smooth glossy chocolate.

Cadburys Milk Tray 1915

Milk Tray has maintained its popularity in the changing world since

the milk chocolate assortment made with the famous Cadburys Dairy

Milk chocolate was first introduced in 1915.

The name tray derived from the way in which the original assortment

was delivered to the shops. Originally Milk Tray was packed in five

and as half pound boxes, arranged on trays from which it was sold

loose o customers. The half pound deep lidded box with the

traditional purple background and gold script was introduced in

1916, followed by one pound box in 1924.


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With its stylish, without frills presentation Milk Tray was the

assortment for everyday, not just special occasion and it represented

the best buy in the chocolate for millions of people. The pack design

has been regularly updated and the assortment itself has changed in

line with consumers taste and preferences.

By the end midthirties the Cadburys Milk Tray assortment outsold

all its competitions and today it is still one of the most popular boxes

of chocolates in this country.


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PRODUCT PROFILE

CHOCOLATE & CONFECTIONARY

Dairy Milk

Fruit & Nut

Picnic

Perk

Gems

clairs

Nutties

Temptation


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FOOD DRINKS

Ovaltine

Drinking chocolate

Bournvita

Horlicks


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Cadburys Fruit & Nut

New Launch

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

directly to the target consumer. The product benefits have been

defined as The goodness of milk to

the fun of chocolate. it combines

both good health, multinational

value of milk along with the values offun and excitement. The kinds

formally associate with Cadbury

chocolate offering.

Temptation :- It is aimed at the niche international chocolate

segment of the chocolate market a

segment how upgrade from brands

such as Cadburys to premium

international offering such as

Tolerance, Lindit and Hersheys.

Roughly 5%of the total domestic

consumption expected to grow to some

10%. This segment is too good to miss

out on. The

Previous

Cadburys range available in India did

not offer consumer an option to

upgrade to international chocolate

within the Cadburys fold. Temptation

is an attempt to lug niche, priced Rs.

30.


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The Cadbury Story

Cadburys success storyIn 1984, John Cadbury founded U.K. company with one aim:- to

create the highest quality chocolate. By1969, when Cadbury merged

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

famous all around world.

Today Cadburys production are enjoyed in 120 countries, with 40

chocolate confectionary brands, Cadbury dominated markets as far as

the U.K. and Australia thats why Cadbury have been dubbed The

worlds master chocolate makers.

The secret of Cadburys success

What is the secret of Cadburys continuing success first theres the

careful selection of the finest coca beans from west Africa, as well as

tasty hazel nuts from Turkey and the fine sheet and choicest natural

ingredient available to us anywhere.Finally theres skillful marketingCadbury always takes extreme care in selecting and marketing the

right range of product in every cause.

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

promotional back up and the right employees. These are the ingredients

in Cadburys latest recipes for success.

Right from the stand Cadbury Dairy Milk Chocolate success has been

based on 4 factors:-

Quality

Value for money

Advertising

Amul Chocolates


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

Composition:

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

Product Specification:

Meets all requirements under the PFA for boiled sugar confectionary.

Gujarat Cooperative Milk Marketing Federation

GCMMF: An Overview

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

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

body of milk cooperatives in Gujarat which aims to provide

remunerative returns to the farmers and also serve the interest of

consumers by providing quality products which are good value for

money.


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Members: 12 district cooperative milkproducers' Union

No. of Producer Members: 2.36 million

No. of Village Societies: 11,333

Total Milk handlingcapacity:

6.9 million litres per day

Milk collection (Total -

2003-04):

1.81 billion litres

Milk collection (DailyAverage 2003-04):

4.97 million litres

Milk Drying Capacity: 511 metric Tons per day

Cattlefeed manufacturingCapacity:

2340 Mts per day

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

1994-95 11140 355

1995-96 13790 400

1996-97 15540 450

1997-98 18840 455

1998-99 22192 493

1999-00 22185 493

2000-01 22588 500

2001-02 23365 500

2002-03 27457 575

2003-04 28941 616


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Amul Brands

Quality is the essential ingredient in all of our brands and the reasonwhy millions of people choose Nestl products every day. Ourconsumers have come to trust in Nestls commitment to excellenceand turn to Nestl brands to maintain nutritional balance in a fastpaced world.

Baby Foods:

Nutrition that suits the needs of your baby.

Dairy Products:

From shelf-stable solutions to chilled dairy.

Breakfast Cereals:

Start your day out healthy with Nestl BreakfastCereals.
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Ice Cream:

Discover the world of delicious Nestl Ice Cream.

Chocolate & Confectionery

Delighting the senses with a range of tastes and textures.

Prepared Foods:

Preparing well-balanced meals is a snap with Nestl.

Beverages:

Drink to a healthy, active life with Nestl beverages.

Food Services:

Providing food and beverage professionals with a widerange of solutions.
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Bottled Water:

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NESTLE INDIA

THE NESTLE India stock has been bubbling with activity in an

otherwise listless equity market.

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

May 2000 and now commands a valuation 39 times the expected

earnings for 2000. This is steep by FMCG standards.

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

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

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

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

good financial performance in a market starved of healthy earningsnumbers.

On a comeback trail

The resumption of its coffee exports to Russia and a favourable input

price environment pepped up Nestle India's net profit growth to 28 per

cent in the first nine months of 2000. Sales growth in this period was

10.4 per cent, with domestic sales rising 9.8 per cent and export sales13.8 per cent. In reality, the growth in sustainable net profits was


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higher than reported as the company took an additional one-time

charge of Rs 14.70 crore in the first nine months of 2000 for

provisions against contingencies.

Unusually, low input prices may have contributed considerably to

margin expansion. Continuing surpluses in global production have

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

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

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

off their lowest levels in three decades.

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

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

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

earnings performance over the next couple of years? This will depend

on its ability to revive sales growth in its domestic product categories.

Greener pastures at home

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

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

coffee exports to Russia due to the economic crisis there, led to a 38

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

Nestle India in 1999.

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

remains poor because realisations have fallen in line with green coffee

prices. Since realisations in the export market are unlikely to look up

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

portfolio to sustain earnings growth.

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

growth in the domestic market was unimpressive, at around 8 percent in 1999 and 9.8 per cent in the first nine months of 2000. In the


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domestic market, Nestle India has traditionally derived its revenues

from five product baskets -- coffee (Nescafe Select, Sunrise); milk

products (Milkmaid condensed milk and ready mixes, Coffeemate

coffee creamer, Everyday Dairy Whitener); weaning foods for infants

(Cerelac, Nestum, Lactogen); chocolates/confectionery and malted

beverages (Milo, KitKat, Charge, Munch, Polo); and food products

(Maggi noodles, soups).

Cash cows slow down

Of these, weaning foods and milk products are the cash cows, with

dominant market shares in both businesses. But as these are mature

products, they appear likely to deliver steady, and not scorching,

growth rates. Sales growth in these businesses was less than five per

cent in 1999-2000.

In chocolates and instant coffee, the growth prospects appear

brighter, but Nestle faces intense competition from the players with

the dominant market shares. While Unilever and Tata Coffee are

significant threats in the coffee market, the market leader Cadbury

India has been a potent threat in the chocolate confectionery market.

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

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

and noodles holds healthy growth potential. But the market isrelatively small and players such as International Bestfoods, Unilever

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

players for a share of the pie.

Stretching existing businesses


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Over the past year, Nestle has devoted considerable attention to the

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

Coffeemate coffee creamer, Frappe cold coffee and Nescafe Gold from

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

range. Incidentally, the inputs from the parent do not come free.

Nestle India paid its parent a Rs 53.69-crore royalty in 1999 (net

profits for the year were Rs 98.47 crore). Royalty payments accounted

for 3.5-4 per cent of sales over the past three years.

Nestle has used the soft input prices to reduce prices of its coffee andchocolate brands. Products such as KitKat and Munch in low-unit

price packs have been used to encourage trial and bolster flagging

volumes. But these moves will take time to pay off.

However, the revival in the 2000 third quarter domestic sales is

heartening. For the quarter ended September 2000, Nestle reported

an 18 per cent growth in domestic sales (export sales declined 8 per

cent due to lower realisations). Considering that Nestle has reduced

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

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

A plan to expand the network of Nescafe vending machines and

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

is also on the cards.

Testing the waters

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

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

biscuits is through the joint venture Excelsia Foods, so the

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

dividends for now.


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Liquid milk and bottled water are businesses that hold immense

growth potential. Larger players can expand through higher

penetration levels and at the expense of the unorganised segment.

However, both these segments are quite crowded with feature listed

and unlisted players which have considerable financial muscle.

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

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

In the bottled water market, the market leader, Bisleri (of ParleProducts), has had to contend with competition from scores of me-too

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

forward, competition is only likely to increase, with Britannia

planning to launch more bottled water brands from its foreign

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

brands, is already on shop shelves).

Striving for niches

Nestle India has already launched two bottled water brands in the

domestic market -- the internationally renowned Perrier, followed

recently by its sparkling mineral water brand, San Pellegrino (reputed

to be sourced from the Swiss Alps).

However, both products are for upmarket consumers. The premium

pricing suggests that the products will remain niche products with

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

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

failure of Nestle's bottled water foray.

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

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

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

premium to the other local brands.


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

competitive markets and investments in the new businesses are likely

to be high over the next few years.

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

available from the stable businesses (such as weaning cereals and

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

Nestle India in good stead.

The royalty to the parent should ensure that Nestle India continues to

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

respects, in India Nestle is pitted against its key adversaries

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

the global level, both companies are considerably smaller than Nestle

SA.

But marketing prowess, rather than size is likely to determine the

success of Nestle India's new product forays in the next couple of

years. Since the high growth rates of this are partly on account of the

low base of last year, the growth rates are likely to reach more

moderate levels next year. The stock continues to be a good

investment option for investors with a three-year horizon. But since

the recent uptrend is partly on account of factors unrelated to thefundamentals, there could be some downside to the stock in the near-

term.


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OBJECTIVE OF THE PROJECT

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

marketing strategies of Cadbury India Ltd. To analyze the marketing

strategies of the company with its competitor in the market. Following

are the some of the main objective of my report are as under:

Comparative study of Cadbury chocolate in the market with itsmain competitors.

To analyze the marketing strategy of the Cadbury India Ltd. To study about the customer taste and preference in the

confectionary item.

To find out the market share of the different competitors in thechocolate industry.

And also to find out the satisfaction level of customer abouttheir product.

.


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RESEARCH METHODOLOGY

Achieving accuracy in any research requires in depth study regarding

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

Cadbury with the existing competitors in the market and the impact

of Nestle on Cadbury, the research methodology adopted is basically

based on primary data via which the most recent and accurate piece

of first hand information could be collected. Secondary data has been

used to support primary data wherever needed.

Primary data was collected using the following techniques

Questionnaire Method

Direct Interview Method and

Observation Method

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

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

Lastly observation method has been continuous with the

questionnaire method, as one continuously observes the surrounding

environment he works in.


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Procedure of research methodology

#Target geographic area was Delhi. NCR.

# To this geographical area questionnaire was given, the

questionnaire was a combination of both open ended and closed

ended questions.

#The date during which questionnaires were filled was between six

week.

# Some dealers were also interviewed to know their prospective.

Interviews with the honour of retailer of Cadbury were also conducted.

# Finally the collected data and information was analysed and

compiled to arrive at the conclusion and recommendations given.

Sources of secondary data

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

current issues, policies, procedures etc, wherever required.

# Internet

# Magazines

# Newspaper


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ORGANIZATIONAL STRUCTURE

MANAGINGDIRECTOR

GENERALMANAGER

VICE PRESIDENT

MARKETING

MANUFACTURING

SALES FINANCE DISTRIBUTION


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Cadbury Schweppes

Cadbury Schweppes plc, a global beverage and confectionary giant

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

cola soft drink company having bottling and partnership operations in

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

around the world. Its Hundred Percent subsidiary in India named

Cadbury Schweppes Beverage India (private) Limited (CSBIL) started

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

which was later followed by Canada Dry, Schweppes Tonic Water,

Schweppes Bitter Lemon.

CSBIL with its franchise agreement with 19 bottles throughout India

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

(Franchise owned bottling operations unlike Coke and Pepsi which

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

beverages company only supplies the concentrate and the marketing

support to build brand equity. The other aspects like machinery,

bottling line, land and distribution is the responsibility of the bottler.

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

hardware.

Cadburys Market Segment

Market place for any product is comprised of many different segments

of consumers, each with different needs and wants. Markets

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

Demographic variables (e.g. Consumers are groups, gender,

material states income etc)

The lifestyle of consumers (i.e. their interests and activities) the

benefits which consumers look for in a product or on the

occasions when the product might be consumed.


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Cadbury takes into account all these factors when producing a

range of products. It targets different segments within the

market, such as the.

Break segment products which are normally consume as a

snatched break and often with tea and coffee, for example

Cadburys Perk and snack range.

Impulse segment these products are often purchase on

impulse, eating these and then. They include product such as

Cadburys Dairy Milk.

Take home segmentthis describes product that are normally

purchased in supermarkets, taken home consumed at a later

stage.


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The Real Taste of RejuvenationIt was the marketleader, but sales inched along. It focused firmly on

its target segment, but the real buyer lay beyond. For seven long

years, Cadburys Dairy Milk chocolate suffered stagnancy even as

other consumer products boomed. Just how did the company

rejuvenate an old brand to create the marketing megs-hit of the 199s?

It Stand First Among Secondcoming. And it wasnt so much a re-

launch as it was a process of rejuvenation. Over a period of 12

months, starting February, 1994, the Rs. 314 crore confectionery

makers Cadbury embarked on the most outrageous repositioning

exercise in the recent history of Indian marketing. For, it

systematically dismantled the franchise that the company had built

over 30 years of its flagship brand, Cadburys Dairy Milk (CDM)-

Cadburys Milk chocolate until 1986-destroying the very fundamental

of generic association that had made million of Indians refer to a bar

of a chocolate as a Cadbury.

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

CDMs market share at 25%, with sale rising by an average 40% per

annum.


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The Diagnosis

Today, The Real Taste of Life campaign, which served

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

consciousness of adult, has already become a classic of advertising

and marketing. By 1993, Cadbury was desperately seeking growth for

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

customers from competitors in this stagnant market wouldnt help.

They had to find new customers, people whod never bought chocolate

before. Or, they had to increase consumption levels. The obvious

solution, in a peculiar predicament. Despite low penetration, both the

brand and the category were displaying symptoms of age: faltering

growth, high recognition, and lack of excitement. The market research

revealed the cause of the graying: chocolate wasnt a snack in India.

In mature markets, chocolate straddle a continuum, from boutique

productpackaged raw indulgence to a casual food. So, Cadbury

whipped up a growth solution that involved associating the brand

with snacking and functionally, which inevitably go together with high

consumption rates in the Western markets.

The next step: identify the barriers preventing consumers from

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

qualitative, comparing chocolate consumption to a basket of

competitive products revealed an unmistakable answer.


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The Tests

Despite the Need To Clear The residual memory of CDMs formerassociation, caution prevented a big break with the past, forcing

Cadbury to experiment with a combination of continuity and change.

The process entailed understanding the foundation of the brand,

since it was these that would support the new structure. Out went

the caring - and - sharing element, but the family context stayed.

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

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

item, so why shouldnt it be sold as one?. The first of the two

commercial focused on functionality, purging the emotional element.

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

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

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

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

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

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

bars strew around casually.

The second commercial conveyed the same message, depicting four

member of a family doing their own thing on a Sunday afternoon,

each casually munching away on chocolates. The less than subtle

message: eating chocolates just an everyday affair, without special

occasion or relationship coming into play. Despite their strategic

intent, both ads failed on preairing tests.

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

consuming chocolate, while adults were down right angry at the

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

important, consumer rejected the idea that chocolate-eating could be

equated with mechanical activities like combing ones hair. After all,chocolates were about feelings. There had to be magic, romance, love


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and emotion. These elements had been ripped away from the

advertising. It was sans emotion.

Parent Are Different From Adults

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

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

analysis on response, Cadburys found that adult as parents behave

very differently from adults as adults. People forbid their children

from having chips, but gorge themselves. The implication:-

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

parent, all his cognitive preconception about the product would come

to the fore. Hed think about the reasons why, and the block would

automatically come up. Tap child-ego state within the adult,

stimulating desire, spontaneity, and the craving for instant

gratification.

The PrescriptionThe crucial question that Cadbury was confronted with: what strategy

should it deploy to rejuvenate COM in a way that would appeal to the

child lurking within the adult? To inject a modern flavor into COM,

they chose to create a new brand identity, borrowing a leaf from

marketing guru David Aaker, who decrees that brand identity should

establish a relationship between the brand and the customer by

generating value proposition involving functional, emotional, or self-expressive benefits.

The Ads Had To Be Linkable

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

what it should be Cadburys job to mould has habits and behavior in

a way that would increase consumption for product and brand.


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Impulse Drives Chocolate Sales

One of the tools Cadburys used was Jean Neal Kapferers BrandPrism model to examine whether contemporary value systems offered

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

interlaid, a distinct shift from collectivism to individualism, with the

pre 1990s sacrosanct values of filial and family love being

overshadowed by the manifestation of a larger need for self

expression. There was a definite yearning to be free child. Therein

lay the opportunity for both unshackling consumption and creatingall-new association for CDM.

The Elixir

Having decided to barter the distinctly use selfish values of sharing

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

Cadburys people insisted that the rejuvenate be enriched with

compensation and equally enduring positive values: universal

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

translate the brief into the commercial, they decide to simply portray

occasion of childlike-but not childish-behavior from adults, without

explicitly identifying adults as the target customer.

They left the connection to be made by the customer In the process

they were able to get viewer involvement and high levels of empathy.

Nowhere did they actually say, youre an adult, you can eat it.

Because nobody wants to be told. Thus it was that, the montage of

the child in the man-the old man kicking the football; the pregnant

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

young man tossing a bar of chocolate at his sweet-heart departing in

a bus-was created.

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

cultural resistance to chocolate consumption by adults was obvious.


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Taking a contrition stance, Cadbury decided to test the commercial

being devised by O&Ms creative team not for the tire battery of

likeability, comprehension, credibility and behavior modificationbut

only for the first two. If asked upfront, the consumer was hardly

likely to consider the dramatically-different idea credible. Nor was

there much chance of her announcing an immediate change in

behavior. But why likeability and comprehension? Simple: the first

was meant to be the vehicle on which the daring idea-that adults

should enjoy chocolate-would ride into the consumers psyche.

In other words, the commercial was meant to make him smile at first-

and only then realize the import once of the message, which is where

the comprehension had to be tested. What was clear in this case was

that likeability would have to include identification and feeling

warmth.


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The Real Taste of Life Campaign

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

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

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

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

milk conveying the deliciousness and taste appeal of the gooey,

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

mnemonic of 1 glass reached to consumer through every

magazines, poster, T.V, newspaper.

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

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

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

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

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

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

refrain linking them was the adult in a free child mode spottiness,

impulsive and carefree.

The ad was protested among adults trough focus groups. The ad

received an overwhelming response. It was high on likeability, evoked

a great degree of empathy and identification consumers response

were those me Feel like that.. Every feels like this..

accessions. Consumers described dairy milk as of all ages

Eat, when ever you feel like ityou do not have to wait for an

occasion.

Dairy Milk had successfully enabled the free child in the consumer

subsequent adverting used the same communication strategy.

In other words, the commercial was meant to make him smile at first-

and only then realize the import once of the message, which is wherethe comprehension had to be tested. What was clear in this case was


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that likeability would have to include identification and feeling

warmth.

The New Campaign

And finally, with the launch of the new colloquial advertising

campaign Khaannein Wallon Khaannein Ka Bahana Chahiya

featuring MTV VJ Cyrus Broacha, Cadbury India aimed to

substantially increase penetration level of the chocolate category in

the next few years.

The New campaign is worth noting as it clearly differ from the earlier

one in terms of rectifying the consumer perception about chocolate

being an up market impulse driven product. The attempt now is to

change the image, to make chocolate eating a regular habit.

The current estimated penetration level of the chocolate category is

19% in the urban market. The objective behind tne new

communication on Cadbury Dairy Milk is to make the chocolate

category more socially and culturally relevant and drive penetration in

the process.

The new campaign has been launched in tandem with the old ar@@

Winning Kuch Khass Hai campaign and the media strategy is to let

the two co exist towards a common vision providing a Cadbury in

every pocket.


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TTThhhooodddiiiSSSeeePPPeeetttPPPuuujjjaaa,,,KKKhhhaaabbbiiiBBBhhhiii,,,KKKaaahhhiiinnnBBBhhhiii!!!


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Chocolate Market Share

The Indian chocolate market is getting bigger and better. While on onehand, the premium segment (composing imported varieties) is opening

up on the other, companies like Cadbury India are launching

indigenous product made to international standards. Of the 20,000

tones chocolate market worth about

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

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

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

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

up a tough fight.

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

substitutes, thanks to the initiative taken by the Cadbury India

during early nineties. The market itself has become more broad

based, in the sense adults are an important target segment now. Thereposting of Cadburys Dairy Milk in 1994 as the real taste of life

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

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

Cadburys range 5 Star, Gems, clairs, Fruit & Nut, Crackle,

Nutties, Butterscotch & Tiffnsa new lease of life. In other words, it


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facilitated the repositioning of Cadburys sub brands in the basket.

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

The company is pushing the gifting segment, through occasion linked

gifts. Chocolates contribute to 64% of Cadburys turnover.

Confectionary sales accounting for 12% of turnover is contributed

largely by clairs. The company attempted expanding its

confectionary product portfolio, with launch of sugar based

confectionary goodly and fruits, without much success. Cadbury also

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

account for 24% of turnover.

There exists an even larger unorganized market in the confectionary

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

Leading national players are nutrine, Parys Ravalgoan, Candico,

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

have aggressively expanded their presence in the country in the last

few years.

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

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

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

largest proportion of all Indias sale. Cadburys Bourn Vita is leader in

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

Klines Horlicks in the Nestle Milo , GCMMF nitramul and other Smith

Kline brand Boost, Maltova and Viva Cadbury bold 14% market share

in food drinks segment.


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Despite tough market condition and increased competition Cadbury

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

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

through innovative marketing strategies and focused advertising

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

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

control over working capital over working capital and capital

expenditure enabled the company to improve the profitability.Company added 8 million new consumers and saw its outlets grow to

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

is the leader brand with 21% among those who expressed an opinion

saying that they like advertising for the brand Cadbury was clearly

No.2 with 18% to which CDM throw in its weight with 13% and pork

with 4%. For the Chowlate company, Khane Walo Lo, Khane Ka

Bhanna and the Karwa Cauth, Sports are clear winners.

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

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

Maggi and Kwality Walls (1%) each.


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Changing Product Mix

Contributingto

turnover1998

Contributingto

turnover2003

Chocolate 59% 64%

SugarConfecting 9% 12%

FoodDrink 32% 24%

Current Market Share

Chocolate 69.2%

SugarConfectionary 4.0%

FoodDrink 14.2%

Expanding Distribution Reach

2001 + Distribution

450000 Retail Outlet

60 Million Consumers


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SWOT ANALYSIS

Strength

1.Very strong brand equity in India.

1. Due to its 54 years presence in Indiahas deep penetration2100 distributors; 450,000 retailers, 60 mid urban (22%)

customers.

2.Three sectors; Chocs (70% share), Confec (4%), food drinks(14% - leader in brown segment).

3. Low cost of production due to economic of scale. That meanshigher profits and / or more competitioners. Better market

penetration.

4.Second best manufacturing location throughout CadburySchweppes.

Weakness

1. Poor technology in India compared to current internationaltechnologies (Godiva, Mozart, Fazer, Dint, Naushans, etc...)

2. Ltd. Key products, only one central brand (CDM). Pralinesrange totally wising in India.

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

imports rush in.

Opportunities

1.Tremendous scope for per capita consumption (160 gms of 810 kg)

2. Increasing per capita national income resulting in higherdisposable income.


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3. Growing middle class and growing urban population.4.

Increasing gifts cultures.

5. Substitute to Mithais with higher calories/cholesterol.6. Increasing departmental stores concept impulse @ at cash

counters.

7. Globalisation: optimal use of global Cadbury Schweppes.

Threats

a] Major:-

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

b] Minor:-

Globalization will being in better brands for upper end of the

market (Liest, Monarch, Godiva, etc).

PEST ANALYSIS

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

brand leader.


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

envisaged.

E: 1) increasing per capita income resulting in higher

disposable income

2) Growing middle class/urban populationincrease in

demand

3) Low cost of productionbetter penetration

S: 1) Per capita consumption expected to increasefashion

2) Increasing gifts cultureincrease in demand

3) Lower cholesterol than mithais (sweet meat)

substitute demand


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T: Will have to reinforce technology to international levels

once India is a free economy

5 PS OF MARKETING

PRODUCT

Satisfaction suffices. But delight dazzles the average company

will compete for customer by conforming to her expectation

consistently. But the winner will surpass them by constantly

exceeding her expectation, delivering to her door step additional

benefits which she would never have imagined possible. Cadburys

offer such product. The wide variety products offered by the company

include:

I. Chocolate & Confectionary

1) Dairy Milk

2) Fruit & Nut

3) 5 Star


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4) Break

5) Perk6) Gems

7) Eclairs

8) Nutties

9) Temptation

10) Milk Treat

II. Beverages

III. Food Drinks

1) Bournvita

2) Drinking chocolate

3) Cocoa


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PRICING

Make no mistake. Second P of marketing is not another name forblindly lowering prices and relying on this strategy alone to increase

sales dramatically. The strategy used by Cadburys is for matching the

value that customer pays to buy the product with the expectation they

have about what the production is worth to them.

Cadburys has launched various products which cater to all customer

segments. So every customer segment has different price expectation

from the product. Therefore maximizing the returns involves

identifying right price level for each segment, and then progressively

moving through them.

Dairy Milk Rs. 15

Perk Rs. 10

5 Star Rs. 10

Friut and Nut Rs. 22

Gems Rs. 10

Break Rs. 5

Nutties Rs. 18

Bournvita (500 gm) Rs. 104

Drinking chocolate Rs. 50


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PHYSICAL DISTRIBUTION:- PLACE

BRAND ISNT THE ONLY ANY MORE. Marketers and financemanager need a new term to evaluate their business:

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

once built, distribution equity is much together to erode.

The fundamental axiom of Indian consumer market is this:

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

hottest strategies on the block, swamp prime television with best Ads,but the end of it all, you would be know of selling your products. The

cardinal task before the Indian market is managing is to shoe-horn its

product on retail shelves. Buyers are paying for distribution equity

not brand equity and market shares.

Why does the company need distribution equity more anything in

India? With technology and competitive pressure slash in it is

becoming increasing difficultfor marketers to retain a

unique product differentiation

for ling period. In a product

and price parity situation, the

brand that sells more is the

one that reaches the highest

number of customers.

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

retail outlets in 5351 urban markets and 552725 villages, spread

cross 3.28 million sq. km. television has already primed andpopulation for consumption, and the marketer who can get to the to


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the consumer ahead of competition will give a hard to overtake

lead. But getting their means managing wildly different terrains-

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

communication network. And your brand equity isnt going to help

when it comes to tackling these issues.

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

agents & distribution stockiest. This network of distribution can

either contact wholesalers and which in turn retailers or the

distributors can contact to the retailers directly.

Once the stock product reaches retailers, the prospective customers

can have access to the product.

Cadburys distributes the product in the manner stated above.

Cadburys distribution network has expanded from 1990 distributors

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

tom improves logistics, Cadbury is also attempting to improve the

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

installed visi colors at several outlets. This helps in maintaining

consumption in summer when sales usually drops due to the fact that

the heal effects product quality and thereby off takes.

Looking at the low penetration of the chocolate, a distribution

expansion would itself being incremental volume. The other reason is

arch rival Nestle reaches more than a million retailers.

This increase in distribution is going to be accompanied by reduction

in channel costs. Cadburys marketing costs, at 18% of total costs, is

much higher than Nestls 12% or even pure sugar confectionerymajor Parrys 11%. The company is lookingto reduce this parity level.


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At Cadbury, they believe that selling confectionery is it like selling soft

drinks.

PROMOTION

If an advertisement is to communicate effectively, the receiver must at

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

Effective advertising is rarely hectoring or loudly explicit. It often

both attracts and generates arm feelings. More often than not, a

successful campaign has a stronger element of the unexpected a

quality that good advertising shares with much worthwhile literature.

To penetrate into the inner recesses of her memory, communication

must first ensure exposure, grab her attention evoke her

comprehension, grab her acceptance and then extract retention

competing with thousands of other units of communication trying to

do the same.

Finding showed that the adults felt too conscious to be seen

consuming a product actually meant for children. The strategic

response address the emotional appeal of the band to the child

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

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

to communicate customer the wonderful feeling that he could

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

seeking child within himself a graft these feeling onto the Ad

campaign like Khane Walon Ko Khane Ka Bahana Chahiye for

CMD and Thodi Si Pet Pooja Kabhi Bhi Kahin Bhifor Perk have

been sure shot winner with the audience.

Whirl with the new launched temptations with the slogan Too ToShare the communication resolves around the reluctance of a person


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whos got their hand on a bar of temptation to let anyone else to have

a bite. As well as outdoor and radio ads, ad agency contract has

created communication for cinemas and even ATM machines for the

brand.

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

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

to get out of her temptation since he/she is bound to be alone.

Something familiar is planned for phone-book as well. In cinemas,

Cadbury has a message on-screen just before the lights are dimmed

to give them a chance to get their temptations. There will also be after

dinner sampling in restaurants to begin with, 30 catteries in

Mumbai have been selected.

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

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

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

form, just in time of Diwali gifting market. clairs has got potential formuch wide distribution, in a small sweets that

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

customers.

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

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

Ad since any discussion today would be incomplete without mention

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

marketing. Beside three company website (i.e. www.cadburyindia

.com, wwww.bourvita.com, www.cadburygift.com that the company

has launched, it had also entered into various marketing relationship


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with other portals, specially targeted during festivals and events such

as Valentines day, etc.

Its a combination of spiffing up its key brand, researching and

improving the newer products that havent taken off, supported with

high adspends that Cadbury hopes will see it emerges stronger after

the current slowdown, as well as expand the market.

POSITIONING

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

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

more for same, and the discounting era grew strong. Todays

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

super value marketers. Some of todays most successful companies

recognize those customers are more educated and able to recognize

true customer value

Positioning is simply concentrating on an idea or even a word

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

to market one successful concept to one large group of people than 50

product or service ideas to 50 separate group repositioning is a

must when customer attitude have changed and product have strayed

away from the consumers long standing perception of the

Cadburys is an anchor in sea of confectionary

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

customer uses complicated decision making process to assess the

alternative before making a purchase. Since Cadburys is more clearly

associated with a particular set of attributes in terms of benefits andprices, the quicker becomes her search process.


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Positioning of individual product:

1.CMD: is and always remain flagship brand. The punch by thecompany for advertising this product life. Real taste of Life,

itself defines the positioning of the product. The chocolate is

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

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

2. 5 star: although positioned internationally as an energy bar, 5star was positioned on an emotional platform in India during

the late 1980s. Symbolizing togetherness, 5 star was originallytargeted at teenagers. In June 1994, the company reworked the

strategy for 5 star to make it a source of energy. In fact, before

the launch of Perk, 5 stars energy bar positioning made it a

snacking chocolate.

3. clairs: competing in the chewable toffees segment. clairs wasre-launched during the mid-nineties with a new name, Dairy

Milk clairs.

4. Gems: broadcasting Gems, though, didnt prove to be feasibleproposition for Cadbury. Targeted at children under 12 years

with Gems Bond advertising. Cadbury decided to too teenagers

with the Smart Very Smart campaign. But now, the company is

retargeting children with its animated commercial. Gems arethe best brand to speak to children. Colorful .

5. chocolate buttons appeal most to children and that is whyCadbury is re-targeting children.

6. Crackle: it was the first Cadburys chocolate to have crunch init. It was targeted as a funky chocolate to add spark to life.

7. Perk: in September, 1995, Cadbury preempted the launch ofNestls Kit-Kat by rushing a new brand, Perk into the market.


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Positioned much further on the functional scale than 5 star,

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

pangs of hunger.

Bournvita: positioned as tasty health drink. While its competitors

concentrated only on health aspect, Bournvita combined the

nutritious value with taste.

IV. Chocolate & Confectionary

1) Dairy Milk

2) Fruit & Nut

3) 5 Star

4) Break

5) Perk

6) Gems

7) Eclairs

8) Nutties

9) Temptation

10) Milk Treat

V. Beverages

VI. Food Drinks

1) Bournvita

2) Drinking

chocolate

3) Cocoa


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The outlook

The Cadbury management has cut down on its growth target by

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

previous growth) coupled with in factionary price increases, this could

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

difficult to achieve given the consumer slowdown and the fact that the

companys consumer slow down and the fact that company is

dependent on a single category chocolates to drive growth. Effect it

expanding confection any portfolio have also not yielded desired

results. The management has declared its intention to focus only in

clairs (which forms a major position of its 4% share in the

confectionary segment) for the time being in this category.

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

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

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

management expects that dairy milk would continue to be the central

driving force in Cadburys growth and that all other brands would

remain peripheral to this central brand.

POSITION OF THE VARIOUS BRANDS IN THE

MARKET HAS BEEN LISTED BELOW


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Cadburysbrands

Positioning Nestlesbrands

Positioning

CadburyDairy Milk

Fruit n Nut

Creamy bar

RoastAlmond

Crackle

Bournvita

The RealTaste of Life

Position asadults as animpulse any

timepurchaseselfexpressionvaluesattached

Classic MilkChocolate

Bar One

Positioned asan affordableenrichedmilkchocolate

Positioned asTrendy, Cool,

any timesnack.

5 Star /Perk/Break

PerkPositioned as

SnackingconsumptionThodi si PetPooja

5 StarEnergy barReach for theStars.

KitKat Positioned asa snacking

consumptionHave aBreak, Havea Kit Kat


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DATA ANALYSIS AND FINDINGS

Data was tabulated manually and was also analyzed manually. Excel

was used to make graphs had pie charts.

Main technique used were:

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

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

questions

26% of people are interested in eating chocolate and 74%are not eating.

The Cadbury brand chocolate 75% of people prefer after thatNestle, Amul and others are take place.

Most of the people buy chocolate from superstore and afterthat from retail or movie mall.

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

Dairy milk and 5 star is most famous product of Cadbury. Cadbury chocolate is very easily available in the market.


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FINDINGS AND SURVEY

1. Do you eat chocolates?

2.Which brand of chocolates do you use?

Yes26%

No74%

0

10

20

30

40

50

60

70

80

Cadbury's Nestle Amul Others

75

6065

30


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3.Where do you buy chocolates from?

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

Super stores32%

Retail stores35%

Restaurants10%

Movie Halls17%

Others

6%

Yes46%

No54%


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5. Which cadburys product do you usually prefer or use?

6. Do you think Cadburys chocolate is easily available in market ?

0

20

40

60

80

Dairy Milk Fruit & Nut Temptation

80

70

24 3540

0

10

20

30

40

50

60

70

80

90

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

East West

North


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CONCLUSION

This company project has demonstrated CADBURY CHOCOLATE

MARKETING STRATEGY WITH ITS MAIN COMPETITORS that has

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

furthering its competitive advantage. It also helps the company for

building its future planning and targeting the customers for more

satisfaction through its innovative product.

In this project it possible to see the success of Cadburys in its indorse

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

maintain its market potential.


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RECOMMENDATIONS

Maintain dominance in chocolate, confectionery and market

leadership in blown drinks.

New channels such as gifting, child connectivity and value for

money offering to be the key growth drives.

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

Achieve the goal of best manufacturing location in Cadbury

Schweppes world for Dairy Milk and clairs.

One new major product launch every year.


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FUTURE STRATEGY

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

Cadburys share in the impulse segment is 4.8% factor like changing

attitude, higher disposable income, a large youth population, and low

penetration of chocolate (22% of urban population) point towards a

big opportunity of increasing the share of chocolate in the branded

impulse among the costly alternative in the branded impulse market.

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

market encouraged by the recent success of its low priced value for

many packs.

Various measures are undertaken in all areas of operation to create

value for the future.

New channel of marketing such as gifting and child connectivity and

low end value for money product for expanding the consumer basehave been identified.

In terms of manufacturing management focus is on optimizing

manufacturing efficiencies and creating a world class manufacturing

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

manufacturing location of Cadburys Schweppes in the world.

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

purchase of imports, higher local consumption by entering long term

contract with farmer and undertaking efforts in expanding local coca

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

term domestic coca a sourcing base would field maximum gains when

commodity prices start moving up.

Use of it to improve logistic and distribution competitiveness


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`Utilizing mass media to create and maintain brands.

Expand the consumer base. The company has added 8million new consumer in the current year and how has

consumer base of 60 million although the growth in absolute

numbers is lower than targeted, the company has been able to

increase the width of its consumer base through launch of low

priced products.

Improving distribution quality by addressing issues of productstability by installation of visi coolers at several outlets. This

would be really effective in maintaining consumption in

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

effects product quality and thereby consumption.

The above are some steps being taken internally to improvefuture operation and profitability. At the

Documents

Analysis of Cadbury Chocolate in the Market With Its Competitors