Deccan Education SocietysBrihan Maharashtra College of Commerce.Pune - 411004

CHOCOLATE EXPERIENCE IN THE WORLD OF CADBURY

PROJECT REPORT

Submitted in partial fulfillment of Third Year ofBachelor of Business Management in International Business (BBM-IB)A Degree Course underSavitribai Phule Pune University

A PROJECT BY :-CHIRAG ANIL KHADSEINDEXSr. No. CONTENTPAGENo.

01Executive Summary

02Objectives of The Study

03Research Methodology

04The Cadbury Story

05Marketing Mix Of Cadbury1. PRODUCT MIX2. PRICE MIX3. PLACE MIX4. PROMOTION MIX

06Market Segmentation And Relative Market Chase of Competitors

07Conclusions

08Suggestions

09Bibliography

Declaration

I, CHIRAG ANIL KHADSE of TY BBM(IB) hereby declare that the project report submitted on CHOCOLATE EXPERIENCE IN THE WORLD OF CADBURY made under the subject of Project Report represents my own collection of information, original research and work, which was carried out by me at the Brihan Maharashtra College of Commerce, Pune.I have completed this mandatory Project Work as prescribed by the Savitribai Phule Pune University.I further declare that the foregoing statements made by me with regard to my project report are correct and complete.

CHIRAG ANIL KHADSE TY BBM (IB) BMCC BMCCPUNE ACKNOWLEDGEMENT

The completion of this project report required the co-operation of many people. I would like to thank everyone who helped me complete this project report. I am thankful to, Mrs. Bharati Upadhye,Co-ordinator, BBA and BBM-IB, BMCC.

Prof. Shilpi Lokre,

For their help in choosing the subject, gathering related information and arranging the same in proper order and their valuable insights on the subject which helped us enhance the quality of this project. I would also like to thank my family for their never ending support and also my friends for always being there to help me.

Date: Place: BMCC, Pune

Cadbury Dairy Milk

When it comes to chocolate Cadbury Dairy Milk isundoubtedly the nations favourite. Its a brand we havegrown up with and most of us still enjoy as much when wewere young. But times are changing and some people havegrown out of the brand and are looking for a more specialchocolate experience.

Future Brand was appointed to help the Cadbury Dairy Milkbrand by developing new flavour extensions that would meetthe needs of the young adults who are looking for moreinterest and variety in their chocolate whilst still wanting theabundance of Cadbury Dairy Milk and the highest qualitynatural ingredients.

The result was two new variants, Cadbury Dairy MilkCranberry & Granola and Apricot Crumble Crunch, buildingon the heritage of Cadbury Dairy Milk Fruit and Nut but in amodern contemporary way. The pack presentation was alsodeveloped to reflect this more contemporary product offerfeaturing multi-layered fruit illustrations that communicatethe abundance of ingredients inside.

Kate Harding, Communications Manager at Cadburycommented this is expected to build on the successby offering new and exciting combinations that willdrive incremental sales by appealing to our new andcurrent consumers

.

Executive Summary

The project which I choose is on Cadbury Company which made Confectionery items and different types of chocolate products. The product which I choose is Cadbury Dairy Milk Chocolate. Cadbury is a Multinational Company and its business is worldwide.

This project covers the following topics:The introduction and the history of the company, Strategic planning of this company like Vision, mission statement and the customer driven marketing strategies of that company like ( market segmentation, targeting and positioning).

The project also covers the Four Ps of marketing (Product, Price, Place and Promotional strategies).It also covers about the Positioning strategy like how company sets its positive position and in the minds of consumers. It also tells about logo, Slogans and about the target market of this product.

Micro and Macro Environment of this company also discussed.At the last my conclusion about the whole marketing process of that companys productI also give the reference of those websites which provides me relevant material and the recommendations about this project.

ANALYSIS OF THE BUYING PATTERN OFCADBURY CHOCOLATE IN THE MARKET WITHRESPECT TO ITS COMPETITORS

Rationale of studyThe Cadburys Inc has taken the opportunity to offer us a broader viewof chocolate category. The Cadburys Indias no.1 Chocolate, is able to share their market insights based upon unparalleled breath ofchocolate 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 studies about buying behaviour of consumers in case ofchocolates

Objectives

First of all before discussing any topic we have to understand the vision and mission statement of Cadburys which tells about the whole goals and objectives of the company and it helps us to understand the whole .Topic easily and effectively.

Vision Statement Cadburys set out a vision to achieve a Cadbury in every pocket dream by increasing the penetration of chocolates.

Mission StatementWe can easily understand the mission statement by following points like;Cadburys mean qualityThis is our promiseOur reputation is build upon qualityOur commitment to continuous improvementIt will ensure that our promise is delivered

Characteristic of this mission statementWe can say that this mission statement is realistic because if we see the quality and day to day improvements easily show that Cadburys have real mission statement.

Setting companys Objectives and Goals

Cadbury successfully turned its mission statement into its overall objectives and goals. Cadbury says Cadbury is the name of quality and the Cadbury dairy milk chocolate and also different products is the biggest example of it.

And it says our commitment to continuous improvement and the demand and customers satisfaction shows that its products successfully fulfill the needs wants and demands by continuous improvement in the features of products.

In short we can say that company turned its mission statement into practical form and set its overall objectives and goals as Cadbury do and now a day become a market leader

My main objective of the study on this project was toanalyse the buyingpattern of Cadbury chocolate in the market against itscompetitors.Following are the some of the main objective of our report:

Analyze the buying behaviour of consumers regarding chocolate.Comparative study of Cadbury chocolate in the market with its main competitors.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 about their product.To find advertisement effect on consumer buying behaviour.To find which promotion scheme affect more. This report gives the help to the marketers for analyzing the different opportunities in the chocolate industry

RESEARCH METHODOLOGYAchieving accuracy in any research requires in depth study regarding the subject. As the prime objective of the project is to know buying behaviour ofconsumers regarding Cadbury with the existing competitors in the market and theimpact 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 technique

Questionnaire MethodProcedure of research methodology

Target geographic area was Pimpri and Chinchwad.

For this geographical area we asked closed ended questions.

The period during which questionnaires were filled was two weeks.

Finally the collected data and information was analyzed andcompiled to arrive at the conclusion.Sources of secondary dataUsed to obtain information on, Cadbury and its competitor history, current issues,policies, procedures etc, wherever required.

Internet

Magazines

Newspaper Sampling MethodSample size- 60Sampling involved selecting units from a population of interest so thatby studying the sample we can fairly generalize the results back to the population from which they were chosen. In the present course work, convenience sampling was used and an aggregate sample size was 60.

History

The legend called Cadbury 1824A business was opened in 1824 by a young Quaker, John Cadbury, in Bull street Birmingham which was to be the foundation of Cadbury Limited, now one of the worlds largest producer of chocolate.1831

By this year the business had changed from a grocery shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa. This was the start of Cadbury manufacturing business as it is known today. A larger factory in Bridge Street Birmingham was rented in 1847, John Cadbury was joined by his brother Birmingham and the business became Cadbury Brother of Birmingham.

1861John Cadbury resigned his business and handed over to his sons, Richard, 25 and George, 21 who after 5 difficult years almost shut down the business to take up other vocation. Fortunately for generation of chocolate lovers, they didnt.1866

Saw a turning point for the company with the introduction of a process for pressing the cocoa butter from the coca beans. This not only enabled Cadbury Brothers to produce pure coca essence, but the plentiful supply of coca butter remaining was also used to make new kind of eating chocolate. The essence was advertised as Absolutely pure, therefore best.

1879Business prospered from this time and Cadbury Brother outgrewthe Bridge Street factory, moving in 1879 to a Greenfield site some miles from the center of Birmingham which came to call Bourneville. The opening ofthe Cadbury factory in a garden also heralded a new era in industrial relations and employee welfare with joint consultation being just one of the introduced by the pioneering Cadbury Brothers.

1899In this year the business private limited companyCadbury Brothers Limited. Progress since the start of the century through the interwar years onwards has been rapid. Chocolate has moved being aluxury 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 favourite module 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 ofCadbury Schweppes plc which is major force in the confectionary and soft drinks international market. World - wide Cadbury is one of the preeminent 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.

1905Cadbury has many famous brands with one of major success story being Cadburys Dairy Milk chocolate launched in 1905, today Britains favourite module 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 ofCadbury Schweppes plc which is major force in the confectionary and soft drinks international market. World - wide Cadbury is one of the preEminent 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.

Cadburys Dairy Milk StoryChocolate 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 Van Houten cocoa press from Holland that was the major breakthrough in the chocolate production as it provided extra cocoa butter needed to make a smooth glossy chocolate.

Cadburys Milk Tray 1915Milk 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 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.With its stylish, without frills presentation Milk Tray was the assortment for everyday, not just special occasion and it represented the best buying 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 mid thirties the Cadburys Milk Tray assortment outsold all its competitors and today it is still one of the most popular boxes of chocolates in this country.

What is the secret of Cadburys continuing success first theres the careful selection of the finest cocoa 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 skillfull marketing Cadbury 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 3factors:-

*Quality

*Value for money

*Advertising

Marketing Mix Strategy of Cadbury Dairy Milk Chocolate

It is also known as integrated marketing or 4Ps of marketing. We can understand the marketing mix strategy of Cadbury dairy milk by discussing the following four Ps of marketing.

Now I discuss the Product, Price, place and promotional strategy of Cadbury dairy milk chocolate.

ProductCadbury dairy milk is made from real chocolate. Its ingredients include cocoa, butter and there is a glass and half full cream dairy milk in every 200 grams in every dairy milk chocolate. Cadbury buys 65 million liter of fresh milk each year to make Cadbury dairy milk chocolate.

StrategyThe strategy of Cadbury dairy milk is to continuous improvement in the quality and features of product. It is the mission statement of Cadbury to make quality chocolate which have competitive advantage from the competitors products and it enhances the goodwill of the company.

PriceIt is an important element of the marketing mix. The price for a chocolate bar can determine whether a consumer will buy it or not it can be determined easily and sales volume tells about that price is reasonable or not.If competitors charge the low price than the Cadbury chocolate, it is automatically affect the companys profit.Strategy;Cadbury dairy milk applies the reasonable and affordable policy to charge the price from its competitors. Because it is the vision of Cadbury that Cadbury is in every pocket. It charges the fewer price from its competitors and provides better quality also. We can say it is used penetration strategy because have low prices as compare to its competitors and have long life cycle of the product. Cadbury wants to survive in the market for long run.

PlaceCadbury dairy milk is produced at the chocolate factory in Bourneville in Birmingham. After the chocolate is produced and goes through the process of all quality checks. It is transported to the staff rooms and then Cadbury sells it product to shops.

StrategyThe placement strategy of Cadbury dairy milk is to sell the chocolate at every corner shop, super stores, bakers shop, petrol pumps and even medical stores also included in it. It is the mission statement of Cadbury to provide chocolate to all type and class of customers.

PromotionThe purpose of promotion is to communicate directly with potential and actual consumers. In order to encourage them to purchase dairy milk chocolate the Cadbury used different promotional tactics.Strategy;Cadbury dairy milk is used press and electronic media to motivate the potential and inspires the actual customers to purchase the product of Cadbury.Promotion is an important element of marketing mix because if it is not well planned then company is unable to increase it sales.The company gives discounts on different occasions.To inspire the Childs to purchase the Cadbury chocolate the company made such type of ads. To encourage the youth class the company hires the superstars for advertisement of the products which inspires the all type of consumers who want to eat sweet.

MARKET SEGMENTATION AND RELATIVE MARKET SHARE OF COMPETITORSMarket place for any product is comprised of many different segments ofconsumers, 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, materialStates, 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.

It involves finding out what kinds of consumers with different needs exist. In the auto market, for example, some consumers demand speed and performance, while others are much more concerned about roominess and safety. In general, it holds true that You cant be all things to all people, and experience has demonstrated that firms that specialize in meeting the needs of one group of consumers over another tend to be more profitable. Generically, there are three approaches to marketing. In the undifferentiated strategy, all consumers are treated as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a standard one where one competitor really cant offer much that another one cant. Usually, this is the case only for commodities. In the concentrated strategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Southwest Airlines focuses on price sensitive consumers who will forego meals and assigned seating for low prices. In contrast, most airlines follow the differentiated strategy: They offer high 56 priced tickets to those who are inflexible in that they cannot tell in advance when they need to fly and find it impractical to stay over a Saturday. These travellers usually business travellers pay high fares but can only fill the planes up partially

Cadbury takes into account all these factors when producing a range ofproducts. It targets different segments within the market, such as the.

Break segmentProducts which are normally consume as a snatchedbreak and often with tea and coffee, for example Cadburys Perk andsnack 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 purchasedin supermarkets, taken home consumed at a later stage

Now we have to see which type or level of market segmentation of Cadbury dairy milk has. Of course mass marketing.

Mass marketingIt means offer the same product to all customers by ignoring market segment differences. Mass means huge group of buyers. It means there are a large number of customers. It is also called macro marketing.Cadbury offers one type of Cadbury dairy milk chocolate to all customers and no difference of market segmentation. Product, price, place and promotional strategies are also same.

Cadbury dairy milk has competitive advantageThe following are the points which give the competitive advantage over competitors.

ImportantCadbury dairy milk chocolate is according to customers needs wants and requirements.

DistinctiveDifferent features as compare to competitors products mean Cadbury have good quality, more features like unique taste, design, logo and other attributes.

SuperiorCadbury dairy milk is superior in quality, continuous improvements and have different features.

CommunicableCadbury dairy milk is easy to understand about the quality and features.

PreamtiveIts logo, quality, taste and other features are not copied by other companies.

AffordableIts price is reasonable and affordable by all customers.

ProfitableIt depends on the sales volume and low cost of the company products.

Market environment of Cadbury dairy milkThere are two types of market environment of Cadbury dairy milk.

Micro EnvironmentMacro Environment

Micro EnvironmentIt means the internal environment of the company and it is also called small environmental forces which directly or indirectly affected the company.It has some forces which are discussed below

CompanyCadbury dairy milk is a company which manufactures the products like chocolate. There are different departments in the company who collectively responsible to make the products.

SuppliersSuppliers are those persons who provide the raw material to the company like cocoa and other supporting raw material there are also external suppliers who provide the finished goods to and create link between company and customers.

IntermediariesAfter making the finished products they create a link between company and suppliers, they include wholesalers, retailers and middlemen.

CompetitorsCadbury have many competitors who directly challenge their product and affect their business.

CustomersAre those people who buy the products of the company? Those people who purchase the Cadbury dairy milk chocolate are the customers of the Cadbury.

PublicIt means government who directly affect the company business by giving different facilities like rebates and funds because company get benefits from it.

Macro environmentIt means the overall and general environment of the company. The forces outside the company called macro environment.

Demographic EnvironmentDivide the market on the basis of age, gender, locality, occupation and income. Cadbury dairy milk targets all type of customers on the basis on these because these are not the hurdles on the way of the company.

Economic EnvironmentCadbury dairy milk understands the economic situation of the country in which it goes to start the business. I mean inflation rate also a matter.

Natural environmentIt also plays an important role in the success of organization. The availability of natural resources also matters.

Technological environmentAvailability of new technology also plays an important role in the success of any organization. It is the symbol of success that country has all new technology.

Political EnvironmentPolitical scenario plays an important role in the success of any organization. Because if new govt. change all the policies of previous govt. then company may suffer heavy losses. Cadbury dairy milk understand and analyze all these conditions.

Cultural environmentThe culture plays an important role because if product is not according to specific culture then company may suffer heavy loss

MARKET SHARE OF COMPETITORSIndias chocolate market is dominated by two just companiesCadbury, which entered the country 60 years ago and has nearly 60% market share, and Nestl, which has about 32%. The two have prospered by luring consumers with attractively packaged chocolate assortments to replace the traditional dried fruits and sugar confectioneries offered as gifts on Indian holidays, and by offering lower-priced chocolates, including bite-sized candies costing less than 3 cents. With growth just starting to kick in, Asia is going to remain a sweet spot for chocolate makers for years to come.ObjectivesCorporate Objectives Broadening consumer appeal and extending reach to newer markets Sustained growth of market share through aggressive product development Striving for international quality in the products and processes Focussing on cost competitiveness, productivity and innovative utilization of assets

Marketing Objectives Get more people to eat more chocolate, which calls for making it more affordable and being more innovative

Advertising ObjectiveConsumer focus Appealing to a broader range of consumers is at the heart of the plan. Greater innovation in packaging & product presentation across various power brandsSuppliers and business partners: Continue using Ethical Sourcing Standards when working with suppliers Continue to engage in regular dialogue with its suppliers and responds to their suggestions

Situation AnalysisThe chocolates market is estimated at around 33,000 tonnes valued at approximately Rs 8.0 bn.Cadbury is the leader in Chocolate with 70% share. It has actually become the generic name for chocolates in India.The next closest competitor to Cadbury in this segment is Nestle 22%. Besides that large foreign brands like Hersheys and local ones like ITC are trying to tread into Cadburys turf. Imported chocolates are available via modern trade in higherendsegments where Cadburys presence is arguably weaker.

Cadburys Strategy

Branding StrategyCadburys strategy to attract consumers is unique in a sense. Instead of focusing on the product, it seeks to tap into emotions normally associated with chocolates.

Marketing StrategyIn the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, clairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world.

Advertising StrategyTelevision, the print media and posters have been the main media of communication for Cadburys advertisements. However, with their understanding of the peculiarities of the Indian market, Cadbury has also explored many new ways of getting their message across to the consumers.

Nestle strategyBranding Strategy\

Nestl describes itself as a food, nutrition, health, and wellness company. Recently they createdNestl Nutrition, a global business organization designed to strengthen the focus on their corenutrition business.

Marketing Strategy:Cadburys biggest competitor, Nestle, often stresses the energy giving aspects of chocolate, or on other attributes of the chocolate - taste in the case of Nestle Crunch, as a light snack in the case of Nestle Bar One.

Advertising Strategy:Television, the print media and posters have been the main media of communication for Nestle advertisements.

Marketing Mix:Product:Cadbury India Limited (CIL) confectionary products include Dairy Milk, 5 Star, Eclairs, Perk, Halls, Bytes and Gems which are the largest selling brands in their segments.Nestle products are Kit-Kat, Munch, Milky-bar, Charge, Classic, Polo. Kit-Kat is their premium brand in chocolates. In Nestle, the diversification and revenues across other segment like snacks, coffee, milk products, infant food, beverages is higher.

Pricing:The price charged for a chocolate bar can determine whether a consumer will buy it and the level of sales achieved can determine. Price is also affected by factors such as the state of the economy, what competitors are charging, the stage reached in the products life cycle and above all what price the Indian market will bear.

Promotion:The basic purpose of promotion and advertising by Cadbury is to make Cadbury synonymous with chocolate and - Educate the market Build brand awareness Increase consumption Encourage seasonal purchases

PlaceChocolate needs to be distributed directly, unlike other FMCG products like soaps and detergents, which can be sold through a wholesale network. 90% of chocolate products are sold directly to retailers. Distribution, in the case of chocolates, is a major deterrent to new entrants as the product has to be kept cool in summer and also has to be adapted to suit local tropical conditions.

Customer TargetThe Chocolate market presently is close to 60mn consumers and they are mainly located in urban areas. Cadbury's has successfully played the role of market leader and market maker by building brands that have a large base of loyal consumers. Cadbury had its tryst with India when it kick-started operations in 1947. Today the brand claims a 70% share of the Indian chocolate market, despite heavy weight competitors like Nestle and domestic giants like Amul.

CONCLUSION Thus we understood better the chocolate market in India. Cadburys has a very good market share currently but will have to constantly revamp their strategies in order to compete with the foreign brands

Cadbury is the most preferred brand than other brands in India and Dairy Milk is the most preferred product from Cadbury.

Flavour and packaging are most important factors that affect the buying behaviour of customer. 57% of customer recalls advertisement before buying the product. So by our research it is concluded that advertisement affects the buyingbehavior.41% people like crunchy and 32% people like nutties chocolate. And mostof the people like small packs. Free gift are more attracting for children and priceoffer schemes attracts middle group more.

BIBLOGRAPHY

www.cadburyindia.com

www.nestle.in

www.google.com

Marketing Management - Philip kotler