Cadbury- Mkt Project

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FIELD PROJECT ON MARKETING

SALES AND DISTRIBUTION CHANNEL OF CADBURY IN LUCKNOW

SUBMITTED TO- SUBMITTED BY -

Prof. Sudha Pandey Jyotika Verma

Shruti Maurya

Sales & Distribution Channel of CADBURY

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Cadbury India Ltd.Cadbury House19, B Desai RoadMumbai 400 026MaharashtraIndiaTel: +91 22 4007 3100Fax: +91 22 2352 1845

MumbaiDelhi


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ChennaiKolkata

DAIRY MILK

The story of Cadbury Dairy

Milk started way back in 1905 at Bournville, U.K., but the journey with

chocolate lovers in India began in 1948.

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

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

amongst teens & adults.

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

Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy

Milk 2 in 1, a delightful combination of milk chocolate and white chocolate.

Giving consumers an exciting reason to keep coming back into the fun filled

world of Cadbury.

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

chocolate market.

5 STAR


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the second largest after Cadbury Dairy Milk with a market share of 14%,

Cadbury 5 Star moves from strength to strength every year by increasing its

user base.

Launched in 1969 as a bar of chocolate that was hard outside with soft

caramel nougat inside, Cadbury 5 Star has re-invented itself over the years

to keep satisfying the consumers taste for a high quality & different

chocolate eating experience.

One of the key properties that Cadbury 5 Star was associated with was its

classic Gold colour. And through the passage of time, this was one property

that both, the brand and the consumer stuck to as a valuable association.

More recently, to give consumers another reason to come into the Cadbury 5

Star fold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury

5 Star was now available with a dash of rice crispies.

PERK

Cadbury launched Perk in 1996. With its light chocolate and wafer construct,

Cadbury Perk targeted the casual snacking space that was dominated

primarily by chips & wafers.

With the rise of more value-for-money brands in the wafer chocolate

segment, Cadbury Perk unveiled two new offerings - Perk XL and XXL. In


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2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved

wafer', Perk became even more irresistible

CELEBRATIONS

Cadbury Celebrations was aimed at replacing traditional gifting options like

Mithai and dry- fruits during festive seasons.

Cadbury Celebrations is available in several assortments: An assortment of

chocolates like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits

enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin

magic, cashew magic, nut butterscotch and caramels.

The super premium Celebrations Rich Dry Fruit Collection which is a festive

offering is an exotic range of chocolate covered dry fruits and nuts in various


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flavours and the premium dark chocolate range which is exotic dark

chocolate in luscious flavours.

TEMPTATION

Cadbury Temptations is a range of delicious premium chocolate in five

flavours variants - Roast Almond Coffee, Honey Apricot, Mint Crunch,

Black Forest and Old Jamaica.

Vision:

"Working together to create brands people love"

Cadbury’s mission statement


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Says simply, ‘Cadbury means quality’; this is our promise. Our

reputation is built upon quality; our commitment to continuous

improvement will ensure that our promise

Mission Statement 0f the product:

The mission statement of our new product is “To provide our

customers with a tempting and exquisite taste” as Enticing

Treats means a mouth watering treat which is simply irresistible

CADBURY BRANDS:

Chocolates

Snacks

Beverages

Candy

SNACKS :

Bytes

BEVERAGES

Bournvita

CANDY

Halls

CHOCOLATES


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Dairy Milk

5 Star

Perk

Celebrations

Temptation

Eclairs

Gems

FORECASTING AND ESTIMATING DEMAND

Survey of Buyers’ Intentions: In the FMCG products buyers taste and

preferences changes in day to day life. So it is very important for the

Cadbury dairy milk to be upto date with the consumers day to day

changing choices. And survey of buyers intention is one of the way of

estimating the future demand of the product. In such survey the Cadbury

choclates prefer to ask questions like

“How many times do you prefer to buy a Cadbury dairy milk in a week?”

“what you think about price of Cadbury dairy milk?”

Composite of Sales Force Opinions: In this type of forecasting, due to

the impractical survey of buyers interviewing, the Cadbury dairy milk

may ask its various sales representatives to estimate their future sales.


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Expert Opinion: The Cadbury dairy milk also have a choice of estimating

future demand on the opinion given by the experts including dealers,

distributors, suppliers, marketing consultants and trade associations.

Past-Sales Analysis: The demand can also be estimated on the basis of

past sales by the Cadbury dairy milk. There are four components in the

Time Series Analysis: trend, cycle, seasonal and erratic.

Market-Test Method: When the entire plan fails, a direct-market test is

desirable. It is especially desirable in forecasting new-product sales or

established product sales in a new distribution channel or territory.

IDENTIFY MARKET SEGMENT OF CADBURY DAIRY MILK.

Targeting a group of customers, who share a similar set of needs and wants.

SEGMENTING CONSUMER MARKETS

There are basically four types of segmentation. Those are as follows:

Geographic

Demographic

Psychographic

Behavioral

Demographic Segmentation


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Age and Life Cycle: Under this type of segmentation the buyers who

mostly prefer the Cadbury dairy milk comes under the age group of 4-

50 years.

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

Cadbury dairy milk are for all types of persons whether male or female.

Income: The price of Cadbury dairy milk is reasonable and affordable.

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

can easily buy it any time when they want to buy. The income of a

person does not play an important role in it.

Generation: Cadbury dairy milk will not be much affected by the

generation differences. All types of peoples like to purchase the

Cadbury dairy milk when they want to buy it.

Behavioral Segmentation

Decision Roles: The decision role is played by the children’s and

youngsters. They play an important role in taking the decision of when

to buy the Cadbury dairy milk.

Occasions: For purchasing the Cadbury daiy milk no special occasions

are required. People can easily purchase it on regular basis also if they

need it. Also occasions such as diwali, rakshabandhan has lot increase

in sales of dairy milk.

Benefits: Cadbury dairy milk is easily available anywhere when we

need it. The supply chain of Cadbury dairy milk is very good. Also it a

quality conscious. So there are two main types of benefits given by

Cadbury dairy milk are supply and quality.

User Status: There are mainly the regular users found in the user

status of Cadbury dairy milk.


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Usage Rate: The user rate is heavy in the behavioral segmentation of

Cadbury dairy milk.

Buyer-Readiness: There is mainly the intending to buy type of

readiness status.

Loyalty Status: There is mainly the absolute loyalty status.

Attitude: There is an enthusiastic type of attitude of the buyers.

Segmenting for Business Markets

Demographic:

Operating Variable

Purchasing Approaches

Situational Factors

Personal Characteristics

Models of Sequential Segmentation

Stage of decision

First-time prospects

Novices

Sophisticates

Orientation

Price-oriented

Solution-oriented

Strategic-value

Steps in Segmentation Process

Needs-based segmentation

Segment identification


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Segment attractiveness

Segment profitability

Segment positioning

Segment acid test

Marketing mix strategy

Effective Segmentation Criteria

Measurable

Substantial

Accessible

Differentiable

Actionable

SELECT BRAND ELEMENT OF Cadbury dairy milk.

Brand elements are those trademark able devices that identify and

differentiate the Brand. Most strong brand employs multiple brand

elements. Like Cadbury dairy milk has the distinctive “Any time crunchy,

all time fresh “slogan. There are certain types of brand element listed

below:

Brand names

Slogans

Characters

URLs

Logos

Symbols


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Brand Element Choice Criteria: There are following criteria for choosing

brand element.

Memorable: The brand element must be such that can be easily

recalled and recognized by the buyer like Cadbury dairy milk.

Meaningful: The brand element must be credible and suggestive of

the corresponding category. And Cadbury dairy milk have such type of

meaningful brand element.

Likeability: Cadbury dairy milk has a most likable brand element by

visually and verbally both.

Transferable: Cadbury dairy milk has such a brand element which will

help it to introduce a new product in the same or different categories.

Its brand element adds brand equity to the product of it.

Adaptable: Cadbury dairy milk brand element is easily adaptable and

updatable. Cadbury dairy milk when launched the new flavors and new

packing it was easily accepted by the buyers.

Protectable: The brand element of Cadbury dairy milk is legally

protectable. Cadbury dairy milk has a unique identity in the market, so

it also has a competitive protectability.

LOGOS:- “pappu pass hogaya”

“Kuch meetha ho Jae”

“Shubh Arambha”

“Kuch meetha ho Jae”

SALES AND DISTRIBUTION CHANNEL OF CADBURY


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DISTRIBUTION

CDM ARE SOLD DIRECTLY TO WHOLESELLER AND RETAILERS. CADBURY'S DISTRIBUTION NETWORK USED TO ENCOMPASSES

2100 DISTRIBUTORS AND 450,000 RETAILERS

PROMOTION

Strong brands are very important in the chocolate confectionery market.

Almost 80% of chocolate purchases are made on impulse. The media mix for the campaign comprises TV, outdoor, Internet and

radio. Use of emotional appeals in advertising. Concentrated more on TV. Advertisement.

A FEW ADVERTISEMENTS


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• The ‘Real Taste of Life’ with the girl dancing on the cricket field • The message: ‘Dairy Milk is for enjoyment’

During late 90’s

• Campaign: ‘Khanewalon ko khane ka bahana chahiye’.

Target: widening chocolate consumption among the masses

During 2003-2009

• Campaign: ‘kuch metha ho jaye’.

Target: to associate Cadbury with celebratory occasion.

• Campaign: ‘pappu pass ho gaya’.

Target: encourage those who have pass the exams to celebrate with Dairy Milk.

• Campaign: ‘Miss Palampur

Target: Focusing on the adults

• Campaign: ‘AAJ PAHLI TARIK HAI’

Target: To celebrate pay day / salary day

DURING 2010 cont.


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• Campaign: "Shubh Aarambh"

Target: Focusing on youngster as well as adult, to celebrate new staring with Dairy Milk

Campaign: Cadbruy Celebration – Kuch Mithas ho jaye

Target: “is diwali aap kise khus karege” focusing on building relationship.

SPONSERSHIP

Cadbury has paid around Rs 14 crore to Multi Screen Media (MSM) to become the presenting sponsor of the fourth edition of KBC to be hosted by Amitabh Bachchan.

“We have chosen to be the presenting sponsor, as we see a good fit of the launch of the program with the ensuing festive season. We expect that the program will create the desired buzz among television viewers,” said V Chandramouli, Director – Marketing (Chocolates), Cadbury India.

Cadburys India will get 90 seconds of ad time per episode.

PRESS RELEASE

Cadbury Dairy Milk launches a new campaign "Shubh Aarambh"

Mumbai, July 2, 2010: Cadbury Dairy Milk (CDM), the flagship brand of

Cadbury India, launched a new campaign, “Shubh Aarambh” today. This

campaign is based on the concept of the Indian tradition of having

something sweet before every auspicious occasion, with the belief that it

leads to a favorable outcome. Over the years, CDM has been a special part of

every Indian's moments of happiness, joy and celebration. This year, for the

first time ever, CDM urges consumers to also enjoy their much loved


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chocolate before embarking on an important task, in anticipation of a

successful outcome.

Over the last six decades, CDM has always given its consumers numerous

reasons to celebrate every joyous occasion. Its campaigns right from, “The

real taste of life’ to ‘Kuch meetha ho jaye’ have been instrumental in

bringing CDM closer to the heart of every Indian chocolate aficionado. With

the more recent “Pappu pass ho gaya” and “Miss Palampur” campaigns,

CDM created a special space for itself during moments of celebration

amongst large communities. The latest “Payday” campaign gave CDM lovers

another moment of happiness that life has to offer. This year, “Shubh

Aarambh” extends within the "Kuch Meetha Ho Jaye" space, urging

consumers to enjoy a bar of CDM stating,

“Koi bhi shubh kaam karne se pehle kuch meetha khalena chahiye.

Kaam acha hota hai”

The new commercial opens with a young girl standing at a bus stop relishing

a bar of CDM, as a young boy comes up to her and requests her for a cube of

the chocolate. Astonished, the girl asks if she knows him, to which the he


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nods in negation. To this, the girl nonchalantly then asks him for a reason for

her to share her CDM. The boy then explains to the girl that his mother tells

him that before starting anything auspicious, it is a must to have something

sweet which then leads to success. The girl ponders over this, only to then

reluctantly give him a cube of CDM. After the boy relishes the chocolate, the

girl inquisitively questions him as to what auspicious work was he planning to

do. To this, with eyes of hope, the boy promptly tells her that he was thinking

of dropping her back home. Amazed, the girl looks at him, and the boy

smiles sweetly at her. The film closes with the coy girl blushing and the boy

smiling having silently understood her reciprocation. The VO then states,

“Shubh Aarambh. Kuch Meetha Ho Jaye”.

Cadbury’s new ad is just a stunner. Cadbury was always famous for their

loud and peppy ad themes such as – “Kya swaad hai zindgi ka”, “Kuch

meetha ho jaaye” and “Aaj pehli taareek hai”. These ad campaigns were

very successful and had created an identity for themselves. Time and again

when Cadbury’s were losing hold on the market, these advertisements put

Dairy Milk back onto its slot and thus it has remained the undisputed leader

in the Chocolate Market. Even after the ‘worms’ controversy of 2004,

Cadbury has managed to be the people’s favorite till now.

Dairy Milk has been one of the best promoted Chocolate brands in the Indian

Advertising history. Both, the chocolates and the advertisements were

equally liked by the Indian public. The lines “Pappu paas ho gaya”,

“Khanewalon Ko Khane Ka Bahana Chahiye” and “kuch meetha ho jaaye”

had become syllables for happy and joyous occasions in Indian household.

The ads had created the right impact on the right junctures. It helped

Cadbury retain 70 percent of the market share and Dairy Milk enjoyed upto

30 percent of the market.


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BUSINESS STANDARD – SUN12-2010

Cadbury’s ‘Kuch meetha ho jaaye’ (Let’s save something sweet) positioning

for its Dairy Milk chocolate has just got a fresh lease of life. Over the last 60

years, India’s largest confectioner has tried to cover every feel-good factor

there is in everyday life. It all started with ‘The real taste of life’ which was a

montage ad showing young girls breaking into a dance, an old man kicking a

ball, boys throwing chocolate at a bus and so on. This was followed by the

cricket ad where a girl breaks into an impromptu dance. This campaign

catapulted the confectioner’s fortunes and market share to new heights.

However, given that this is an impulse category, Cadbury has had to

constantly reinvent its campaign and cannot depend on the same

advertising. So it next decided to concentrate on consumers in small towns

and from lower socio-economic categories, while sticking to the core promise

of joy.

In 2003, the company aimed to position the brand as not just an occasion-

based chocolate but as more of a casual consumption habit with the ‘Khush

hoon khamakha’ (Am happy just like that) commercial.

Then there was a mid-course correction after the worm controversy.

Overnight, its market share slid from 73 per cent to 69.4 per cent. Amitabh

Bachchan, the country’s most trusted brand ambassador at that time, was

roped in to calm frayed nerves. At the same time, it did some improvisation

in packaging to ensure that the chocolates remain safe. The move worked

wonders, and no further damage was caused.

Bachchan stayed on even after the controversy had died. And the company

returned to the celebration story board. The next campaign showed the

resident flunky finally clearing his 12th standard exams. The tagline ‘Kuch


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meetha ho jaye’ underscored the promise. Within the Kuch meetha ho jaye

positioning, it tried many different things starting with Bachchan in the

Pappu pass ho gaya campaign, and the Miss Palampur ad.

New direction

Last year it came out with the idea of celebrating on payday, and finally now

it’s using the theme of auspicious occasions with the new ‘Shubh aarambh’

(auspicious start) campaign. Unmistakably, the common thread is how

Cadbury Dairy Milk wants to create a special place during moments of

celebration.

“We’d like to see the new ad as a new direction,” says Cadbury Director

(chocolates & strategy) V Chandramouli. According to him, the company

wants to create more and more celebration situations that will increase the

consumption of chocolate. “We simply want to activate a new need space,”

he adds. Abhijit Avasthi, the national creative director of Ogilvy & Mather,

Cadbury’s long-standing creative agency of 50 years, says: “Shubh aarambh

is yet another cut on our long-running and immensely successful Kuch

meetha ho jaaye thought for Cadbury Dairy Milk. Though it is rooted in the

cultural truth of auspicious beginnings starting with something sweet, we’ve

tried to give it a youthful and contemporary flavour.”

The new territory will be used by Cadbury Dairy Milk for the next two or three

years at least. The ads that follow will work both on the thought as well as

urging consumers to follow the behaviour. For instance, on the weekend the

ad broke, two short five-second previews were released across channels.

While one ad showed a ribbon being cut, another ad featured a coconut

being broken — both the acts stand for new beginnings in the country.


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Following that the full ad came out featuring a young girl standing at a bus

stop eating a bar of Cadbury Dairy Milk. A boy comes up to her and requests

her for a piece of the chocolate. Surprised, the girl asks if she knows him, to

which he says no. The boy then explains that his mother tells him that before

starting anything auspicious, it is a must to have something sweet. Hearing

this, she reluctantly gives him a piece of Cadbury Dairy Milk. Still curious, the

girl asks what he’s referring to. He smiles and says that he was thinking of

dropping her back home.

For several years Cadbury has been trying to make its flagship Dairy Milk,

which is primarily seen as children’s indulgence, a permissible product

among adults. This is unlike in the West where chocolates are also seen as a

snacking option. Naturally, per capita consumption is very high in such

markets. India’s per capita chocolate consumption is just 54 gm in a whole

year, compared to 10.5 kg in the UK and 10 kg in the US. Clearly, creating

more need options for the adult holds the key to growth.

Broadening the base

Last year too, Cadbury reiterated this point with its payday commercial

which starts with a cashier giving the protagonist his salary for the month.

The young man breaks into a dance and the rest of the office joins him in no

time. The man proceeds to pay the milkman and doctor on his way out. He

then sees a young child and hands him a Cadbury Dairy Milk. And all this

happens to the background score of “meetha hain khana, aaj pehli taarikh

hai”. (Let’s eat something sweet, today’s the first day of the month). The

retro feel was unmistakable.

To translate the thought into action, Chandramouli and his team have

devised a full 360-degree campaign. For example, people will see Cadbury


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Dairy Milk hoardings at bus stops and railway stations, and college students

starting a new term will see boards near their college. “We want to link the

thought with the trigger,” says he.

SURVEY REGARDING SALES AND DISTRIBUTION CHANNEL OF CADBURY DAIRY MILK AND 5 STAR


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We visit the distributor of Cadbury in TRANS GOMTI area Mr. Rajesh Tiwari.

CADBURY DISTRIBUTER

DEERAJ INTERPRISE

G 23, SUMIT COMPLAX

A1/9, BOT (VIBHUTI KHAND)

Mobile No. 9506003582

He is whole sole distributor of the Trans Gomti Region.

Cadbury Depot is located at Kanpur, about 90km (approx.) from Lucknow.

The storage section of depot is divided in 3 sections. These three sections

are Air Conditioned section (for chocolates), Semi Air Conditioned (for

“Celebrations” Gift packs) and the Non Air Conditioned Section (for

Bournvita, Halls, Gems etc). At any time, stock which would last for 3 weeks

is always stored in depot. Stock is supplied to the distributors located in


Distribution Area

Gomti Nagar

Munshi pulia

MahanagarJobling

o

Chinhat

Indranagar

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various cities, from where it is further distributed to retailers and Whole

sellers.


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CADBURY

DEPO: KANPUR

HEAD QUARTER: MUMBAI

They have 4 salesmen who cover Trans Gomti area. One sales man covered 40 counters per day. Change their time table day wise.

TURNOVER

20 to 25 lacks

SCHEME: Must sale scheme.

DISCOUNT: In gift pack 2% discount.

Here is a close up view of a vertical space. We can see that the space is

surrounded by Cadbury Header Cards, and the inside walls are also covered

with backing sheets. This sort of merchandising beautifies the shelf and, in a

way, reserves that space for Cadbury products. Therefore, after the outlets

have been enrolled, merchandisers will play a very important role in


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“reserving” the space for Cadbury by sticking banners and stickers in the

booked shelf.

Now, there is one “thumb rule” in case of chocolates and that is “ jo dikhta

hai, wo bikta hai” i.e. only that chocolate will sell which would be visible to

the customer. The reason is simple – chocolate sells primarily due to one

factor which we call “Impulsive Buying”. In most of the cases, customers

never really plan their purchasing decision of chocolates, it’s only after they

see chocolates in counters that they feel like buying them. So, that’s why

visibility is one of the most important factors which drive the sale of

chocolates.


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SEAS GOMTI AREA

DISTRIBUTOR – Mr. Rahul Tripathi

Anjaneya Trading Com

29, Sarojini Naidu Marg

Havlack Road

Mobile no. 09839285010

We meet Mr. Sumeet Khanna, who is distributor representative for the big business accounts i.e. BIG BAZAAR, LANDMARK, FUN REPUBLIC, VISHAL MEGA MART, etc. This big business accounts come under Modern trading. Modern Trading is totally different from Retail business.

Details of Seas Gomti Cadbury Distribution

Depot – Kanpur

Anjaneya Trading Com. One day prior submit their requirement to the Kanpur Depot. In Kanpur, all the requirements are listed and then enter their billing in the computer. After this the required products are loaded in the tracks. Days are allotted to the distributor to submit the requirements in the Depot.

Sales Persons - 6

Sales Persons visit per day counter – 40

Turnover – 50-52 Lacs.

Mainly the Sales Fluctuation is in summer season. Customer more influence towards chill items and institutions are close for summer vacations.


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Cadbury- Mkt Project