Ranjit Cadbury Project

8/10/2019 Ranjit Cadbury Project

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CHAPTER - I

INTRODUCTION

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INTRODUCTION

MEANING OF CHANNEL

A channel of distribution comprises a set of institutions, which perform all of the

activities utilized to move a product and its title from production to consumption.

Place. Place is also known as channel, distribution, or intermediary. It is the

mechanism through which goods and/or services are moved from the

manufacturer/ service provider to the user or consumer.

A classical Distribution scenario:

A wholesaler procures an order, acuires goods and stores them in a !mwarehouse,

supplies order"based stock for a calculated amount of profits. #he wholesaler

played a number of roles traditionally " he was an intermediary who took care of

logistics and moved stock around, a consolidated sales agent for suppliers, a local

customer service point and a demand buffer for manufacturers.

$es, multitasking e!isted even then, but with limited scope. #hese limitations were

of the physical kind " all these roles could be played out only within a certain

geographical terrain.

Te Distribution Net!or" to#a$:

#oday, the role of the distributor as an intermediary has morphed into that of a

%disintermediary%. A distributor plays a virtual role, an almost invisible part of a

smooth supply chain. #hird"party logistics providers help ship goods from one part

of the globe to another in a day, while a more customer"centric distribution chain

enables direct ordering and tracking of orders over the Internet.

&emote means of customer service diminishes the importance of a local customer.

#oday%s supply chains have become e!tended value chains where distributor

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operations have shifted from the buy, hold and sell paradigm to the sell, source and

ship paradigm.

#o make these necessary shifts the distributor needs to have more information

about all customers, learn to manage inventory from other distributors and have aworkflow"based information system.

T$%es o& Cannel Inter'e#iaries

#here are many types of intermediaries such as wholesalers, agents, retailers, the

Internet, overseas distributors, direct marketing (from manufacturer to user

without an intermediary), and many others. #he main modes of distribution will be

looked at in more detail.() Cannel Inter'e#iaries - *olesalers

o #hey break down %bulk% into smaller packages for resale by a retailer.

o #hey buy from producers and resell to retailers. #hey take ownership or

%title%

togoods whereas agents do not.

o #hey provide storage facilities. *or e!ample, cheese manufacturers seldom

wait for their product to mature. #hey sell on to a wholesaler that will store

it and eventually resell to a retailer.

o +holesalers offer reduce the physical contact cost between the producer

and consumer resulting in lower customer service costs, or sales force costs.

o A wholesaler will often take on some of the marketing responsibilities.any produce their own brochures and use their own telesales operations.

+) Cannel Inter'e#iaries - A,ents

o Agents are mainly used in international markets.

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o An agent will typically secure an order for a producer and will take a

commission. #hey do not tend to take title to the goods. #his means that

capital is not tied up in goods. owever, a %stockiest agent% will hold

consignment stock (i.e. will store the stock, but the title will remain withthe producer. #his approach is used where goods need to get into a market

soon after the order is placed e.g. foodstuffs).

o Agents can be very e!pensive to train. #hey are difficult to keep control of

due to the physical distances involved. #hey are difficult to motivate.

) Cannel Inter'e#iaries - Retailers

o &etailers will have a much stronger personal relationship with the

consumer.o #he retailer will hold several other brands and products. A consumer will

e!pect to be e!posed to many products.

o &etailers will often offer credit to the customer e.g. electrical wholesalers,

or travel agents.

o Products and services are promoted and merchandised by the retailer.

o #he retailer will give the final selling price to the product.

o &etailers often have a strong %brand% themselves e.g. &oss and +all"art in

the 0A, and Alisuper, odelo, and umbo in Portugal.

.) Cannel Inter'e#iaries - Internet

o #he Internet has a geographically disperse market.

o #he main benefit of the Internet is that niche products reach a wider

audience

o #here are low barriers to entry as set up costs are low.o se e"commerce technology (for payment, shopping software, etc)

o #here is a paradigm shift in commerce and consumption which benefits

distribution via the Internet

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Te usual Distribution cannels are:

() Co''ission a,ent

#he commission agent represents you in the overseas market. e or she sells your

product and feeds orders back to you. $ou ship the goods and invoice the customerdirectly. +hen the customer pays for the goods, you pay the agent commission on

the sale. #his varies from '3 to 143 depending on the type of goods being

handled. 5ommission should be included in the price uoted to the customer.

+) I'%orter/#istributor

ere, the importer/distributor actually buys the goods from you, stores them in a

warehouse and sells them on to a third party. #he mark"up is usually around --3.+ith a commission agent you may have to collect payment from a variety of

customers. Importers/distributors on the other hand actually buy goods, so debt

collection is considerably simplified.

()+ T0PE1 OF DI1TRI2UTION CHANNEL1

arketing channels vary considerably for different types of consumer andindustrial goods. #hey consist of different kinds of building blocks, producers,

consumer or industrial user6s, agents, wholesalers, and retailers depending upon

the philosophy of the company, nature of market, nature of customer, scale of

operation, etc. different types of marketing channels have are7"

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#his three" stage channels for distribution under which mercantile agents establish

links between the producer and the wholesaler. #his channel is used where the

wholesalers are scattered throughout the country and agents undertakes

marketing6s on behalf of the producers. #he wholesalers sell to retailers who inturns sell to consumers. It is also possible to have a channels of producer,

wholesaler, agents, retailer and consumer.

Functions 6 Flo!s o& a Distribution Cannel

#he main function of a distribution channel is to provide a link between

production and consumption. ;rganizations that form any particular distribution

channel perform many key functions7In&or'ation:


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CHAPTER - II

CONFECTIONER0

INDU1TR0 IN INDIA

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CONFECTIONER0 INDU1TR0 IN INDIA

5onfectionery Industry

#he confectionery industry in India is appro!imately divided into7 5hocolates

ard"boiled candies

clairs B toffees

5hewing gums

Collipops

Dubble gum ints and lozenges

#he total confectionery market is valued at &upees 21 billion with a volume

turnover of about ''-844 tonnes per annum. #he category is largely consumed in

urban areas with a ?-3 skew to urban markets and a '?3 to rural markets.

ard boiled candy accounts for 1@3, clairs and #offees accounts for 1@3,


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CHAPTER - III

COMPAN0 PROFILE

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COMPAN0 PROFILE

5adbury India Ctd. is a part of the Fraft *oods


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Hgold standardH for chocolates in India. #he pure taste of 5= defines the

chocolate taste for the Indian consumer.

In the ilk *ood drinks segment our main product is Dournvita " the leadingalted *ood =rink (*=) in the country. 0imilarly in the medicated candy

category alls is the undisputed leader. +e recently entered the biscuits category

with the launch of the +orlds no 1 biscuit brand ;reo.

0ince 1E:8 5adbury has also pioneered the development of cocoa cultivation in

India. *or over two decades, we have worked with the Ferala Agriculture

niversity to undertake cocoa research and released clones, hybrids that improvethe cocoa yield. ;ur 5ocoa team visits farmers and advise them on the cultivation

aspects from planting to harvesting. +e also conduct farmers meetings B seminars

to educate them on 5ocoa cultivation aspects. ;ur efforts have increased cocoa

productivity and touched the lives of thousands of farmers. ardly surprising then

that the 5ocoa tree is called the 5adbury treeJ

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CAD2UR0 *ORLD*IDE

orthfield, Ill."based Fraft *oods Inc. ($07 F*#) is a global snacks

powerhouse with an unrivaled portfolio of brands people love. Proudly marketing

delicious biscuits, confectionery, beverages, cheese, grocery products and

convenient meals in appro!imately 1?4 countries, Fraft *oods had '414 revenue

of K2E.' billion, more than half of which was earned outside orth America.

#welve of the company6s iconic brands " including 5adbury, acobs, Fraft, C,

a!well ouse, ilka, abisco, ;reo, ;scar ayer, Philadelphia, #rident and

#ang " generate revenue of more than K1 billion annually, and 24 have been loved

for more than a century. A leader in innovation, marketing, health B wellness and

sustainability, Fraft *oods is a member of the =ow ones Industrial Average,

0tandard B Poor%s 844, =ow ones 0ustainability Inde! and thibel 0ustainability

Inde!.

eritage7 +e have come a long way since .C Fraft started selling cheese from a

horse drawn wagon in 1E4-. ard work, imagination and commitment to bring the

world its favorite foods has helped us grow into a company that touches more than

a billion people in 1:4 countries. veryday. ;ne at a time.

0ome fast facts on the combined company7

Global Reac

Annual revenues of K 2E.' billion

ore than '83 of


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2ran# Port&olio

11 brands with more than K1 billion in revenue

?4M brands with more than K144 million in revenue

24M brands over 144 years old

@43 revenue from L1 share positions

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MI11ION

At 5adbury PC5, our core purpose is H+orking together to create brands

people loveH.

#he core purpose captures the spirit of what we are trying to achieve as a

business.

+e collaborate and work as teams to convert products into brands.

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3ALUE1

+e are performance driven, values led. #hroughout changing times, our constant

values have inspired us to be pioneers in business and in corporate responsibility.

#hey help ensure we are proud of our company and are critical to our core purpose

of creating brands people love.

Our 7alues are:

Performance

+e are passionate about winning. +e compete in a tough but fair way. +e are

ambitious, hardworking and make the most of our abilities. +e are prepared to

take risks and act with speed.

8ualit$

+e put uality and safety at the heart of all of our activities " our products, our

people, our partnerships and our performance.

Res%ect

+e genuinely care for our business and our colleagues. +e listen, understand and

respond. +e are open, friendly and welcoming. +e embrace new ideas and diverse

customs and cultures.

Inte,rit$

+e always strive to do the right thing. onesty, openness and being

straightforward characterise the way we do business. +e have clear principles and

do what we say we will do.

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Res%onsibilit$

+e take accountability for our social, economic and environmental impact. In this

way we aim to make our business, our partners and our communities better for the

future.

;ur Dusiness Principles are our code of conduct and also take account of global

and local cultural and legal standards. #hey confirm our commitment to the

highest standards of ethics and business conduct. 5ore purpose and vision section7

5ore purpose7 ;ur core purpose is creating brands people love. #he core purpose

captures the spirit of what we are trying to achieve as a business.

+e collaborate and work as teams to convert products into brands.

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3I1ION

#o align with our core purpose, 5adbury India has defined its Nision as HCife *ull

;f 5adbury and 5adbury *ull of CifeH.

5adbury India will participate in many spaces of consumer life through a cache of

product B service offerings " be it chocolates or snacks or gum.

+e believe that work and fun can co"e!ist beautifully. #herefore at 5adbury India,

it%s all about work hard, play harderJ. +e bring moments of delight to our

consumers everyday and every time. #herefore, we strongly believe that those

people who create these products should also have fun while doing so.

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CAD2UR0 DAIR0 MIL5

#he story of 5adbury =airy ilk started way back in 1E48 at Dournville, .F.,

but the >ourney with chocolate lovers in India began in 1E2@.

#he pure taste of 5adbury =airy ilk is the taste most Indians crave for when

they think of 5adbury =airy ilk.

#he variants *ruit B ut, 5rackle and &oast Almond, combine the classic taste of

5adbury =airy ilk with a variety of ingredients and are very popular amongst

teens B adults.

&ecently, 5adbury =airy ilk =esserts was launched, specifically to cater to the

urge for %something sweet% after meals.

5adbury =airy ilk has e!citing products on offer " 5adbury =airy ilk +owie,

chocolate with =isney characters embossed in it, and 5adbury =airy ilk ' in 1, a

delightful combination of milk chocolate and white chocolate. oy and celebration. #oday, 5adbury =airy ilk alone holds -43 value

share of the Indian chocolate market.

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In the early E4%s, chocolates were seen as %meant for kids%, usually a reward or a

bribe for children. In the id E4%s the category was re"defined by the very popular

O&eal #aste of Cife% campaign, shifting the focus from O>ust for kids% to the Okid inall of us%. It appealed to the child in every adult. And 5adbury =airy ilk became

the perfect e!pression of %spontaneity% and %shared good feelings%.

#he %&eal #aste of Cife% campaign had many memorable e!ecutions, which people

still fondly remember. owever, the one with the Hgirl dancing on the cricket

fieldH has remained etched in everyone%s memory, as the most spontaneous B un"

inhibited e!pression of happiness.

#his campaign went on to be awarded %#he 5ampaign of the 5entury%, in India at

the Abby (Ad 5lub, umbai) awards.

In the late E4%s, to further e!pand the category, the focus shifted towards widening

chocolate consumption amongst the masses, through the %Fhanewalon Fo Fhane

Fa Dahana 5hahiye% campaign. #his campaign built social acceptance forchocolate consumption amongst adults, by showcasing collective and shared

moments.

ore recently, the %Fuch eetha o aaye% campaign associated 5adbury =airy

ilk with celebratory occasions and the phrase HPappu Pass o oy in a moment of achievement / success.

#he interactive campaign for HPappu Pass o


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students to check their e!am results using their mobile service and encouraged

those who passed their e!aminations to celebrate with 5adbury =airy ilk.

#he %Pappu Pass o


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spontaneous, shared good feelings, providing the 9real taste of life6 e!perience.

#he strategy paid off7 Drand 5adbury grew by over 843 in sales volumes. #hen in

1EE@, the ne!t stage of growth for the brand dealt with popularising consumption

in a social conte!t, especially in more traditional settings like weddings. +ith thecampaign 9Fhaanein waallon ko khaanein ka bahana chahiye6 featuring 5yrus

Droacha, 5= aimed to substantially increase penetration levels. #he campaign

was launched in tandem with the award winning 9Fuchh khaas hai...6campaign

and the media strategy was to let the two co"e!ist towards a common vision7 9A

5adbury in every pocket6. #he brand penetrated into smaller towns and sales

volumes grew by 243 (0ource7 Internal 0ales =ata).

ore recently, 5adbury has signed on Amitabh Dachchan to endorse the brand.

#he latest #N5 featuring Dachchan and a kid is fittingly titled 9charm6.

5harm, very clearly, is what 5adbury is carefully reworking into 5=

communications that and what the company terms 9the >oy of consuming

chocolate6.

#he company6s repackaging e!ercise, which used a combination of packaging

technologies, was unprecedented in the category. +ith the redesigned packaging in

place, the company decided to communicate the measures it had taken to

safeguard uality standards. #o add credibility to its pitch, 5adbury took recourse

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CAD2UR0 1TAR

5hocolate lovers for a uarter of a century have indulged their taste buds with a

5adbury 8 0tar. A leading knight in the 5adbury portfolio and the second largest

after 5adbury =airy ilk with a market share of 123, 5adbury 8 0tar moves from

strength to strength every year by increasing its user base.

Caunched in 1E:E as a bar of chocolate that was hard outside with soft caramel

nougat inside, 5adbury 8 0tar has re"invented itself over the years to keep

satisfying the consumers taste for a high uality B different chocolate eating

e!perience.

;ne of the key properties that 5adbury 8 0tar wasassociated with was its classic


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CAD2UR0 PER5

A pretty teenager a long line, and hungerJ &ings a bellQ #hat was how 5adbury

launched its new offering 5adbury Perk in 1EE:. +ith its light chocolate and

wafer construct, 5adbury Perk targeted the casual snacking space that was

dominated primarily by chips B wafers. +ith a catchy >ingle and tongue in cheek

advertising, this %anytime, anywhere% snack zoomed right into the hearts of

teenagers.

&aageshwari started the trend of advertising that featured mischievous, bubbly

teenagers getting out of their %stuck and hungry% situations by having a 5adbury

Perk. 5adbury Perk became the new mini snack in town and its proposition H#hodi

si pet poo>aH went on to define its role in the category.

As the years progressed, so did the messaging, which changed with changes in the

consumers% way of life. #o compliment 5adbury Perk%s values, the bubbly and

vivacious Preity Rinta became the new face of Perk with the %hunger strike%

commercial in the mid E4%s.

In the new millennium, 5adbury Perk moved beyond >ust owning %hunger% to a

HFabhi bhi kaise bhiH position, because the urge for 5adbury Perk could strike

anytime and anywhere.

+ith the rise of more value"for"money brands in the wafer chocolate segment,

5adbury Perk unveiled two new offerings " Perk SC and SSC.

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#he temptation to have more of 5adbury Perk was made even greater with the

launch of 5adbury Perk inis in '44- for >ust &s. '/"

In '442, with an added dose of %&eal 5adbury =airy ilk% and an %improvedwafer%, Perk became even more irresistible. #he product was supported in the

market with a new look and a new campaign. #he advertisement spoke of the

irresistible aspect of the brand, with %Daaki sab Dhoola de% becoming the new

mantra for 5adbury Perk.

=id you know7

5adbury Perk advertising has been a launch pad for Dollywood stars " PreityRinta, &aageshwari,


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CAD2UR0 CELE2RATION1

5adbury 5elebrations was aimed at replacing traditional gifting options like

ithai and dry" fruits during festive seasons.

5adbury 5elebrations is available in several assortments7 An assortment of

chocolates like 8 0tar, Perk, a. It is also a ma>or success as a corporate gifting brand. #he

communication is based on the emotional route and the tag line says Hrishte pakne

doH which fits with the brand purpose of strengthening your relationships with

something sweet.

=id you know7

#he H&ishte Pakne doH >ingle was penned by noted writer


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DAIR0 MIL5 ECLAIR1

Gclairs was first discovered by a local confectionery firm in Condon, ngland in

the 1E:4s. #he firm then became part of 5adbury in 1E?1 making 5adbury Gclairs

the second largest brand in the company. #he e!perience of eating a 5adbury

=airy ilk Gclairs is truly uniue because of its creamy caramel e!terior and rich

5adbury =airy ilk chocolate at the center.

;ur ourney7

In India, 5adbury =airy ilk Gclairs has been the most preferred brand in the

Gclairs category for years and has always been a favorite with consumers.

Gclairs advertising over the years has talked about the mesmerizing taste of Gclairs

because of the 5adbury =airy ilk chocolate it contains at its center.

A#7ertisin,:

5adbury Gclairs rang in the ew $ear '411 with an e!citing new addition T the

new 5adbury Gclairs &ich Drownie priced at &s.'/". 5adbury Gclairs &ich

Drownie packs in a smooth brownie flavor enveloped in delicious caramel. At theheart of the candy is of course a gush of 5adbury =iary ilk chocolate. 5alled the

U5hocolate *ountainV, 5adbury Gclairs urges consumers to en>oy the great gush of

delicious chocolate that hits their taste palate every time they have an Gclairs &ich

Drownie.

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In '44E, Gclairs underwent a complete makeover. An e!tra gush of liuid

chocolate encased in softer caramel and a brand new package ensured that Gclairs

would continue to be an eternal favorite.#he 5hocolate Fa eetha Dombcampaign was launched to strongly promote the new improved Gclairs

#he romanticism of this treat called Gclairs was enhanced with the =oob Ce Rara

campaign in '414

Di# $ou "no!:

A sign in front of our igeria factory describes 5hoclairs as Hthe sweet with hearton the inside.

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CAD2UR0 GEM1

5adbury


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HALL1

alls is the leading sugar confectionery brand in the world. In 1E-4 r. alls

invented its entho"Cyptus formula, using a combination of menthol and

eucalyptus, and began producing its popular cough drops. #he cough drops wereintroduced into the 0 during the mid"1E84s. +hen +arner"Cambert recognized

the potential of the product, they acuired it in 1E:2.

In 1E?1, the American 5hicle sales force, part of +arner Cambert, began selling

alls under the Adams family and later on it was bought by 5adbury 0chweppes

in the year '44- from Adams to mark their entry into the mints and chewing gum

category.

+orld over alls is sold as a cold relief product as well as the mouth freshener. In

the northern hemisphere, alls is sold as a cold relief product and has licensed

medicated status in markets such as the 0, the F and 5anada. In hotter and

drier countries however, alls is bought for mouth refreshment.

9ourne$:

In India was seen more as a medicated candy for young people on the move. It%s

been always synonymous with the throat relief which gives you a breath of fresh

air as it was the only product with strong product attributes and delivery.

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alls in recent times ('44-) has come with some interesting advertising like...

Haa main aa gayaH commercial wherein in Dollywood style, son goes to save his

parents and while screaming get choked in throat. It was developed to deliver on

the message of "Halls clears my throat and hence clears my voiceH.

=id $ou Fnow7

alls is marketed in '2 different countries around the world.

alls products are offered in over ': flavours7

alls produced the largest sweet in the world in 1E:2. +eighing 1.8cwt or

?:kilos, it had to be made in two pieces that were then bonded together.

alls accounts for more than 843 of international cough drop sales.

In '44', people consumed 144,444 tons of allsJ

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DI1TRI2UTOR OF CAD2UR0

(0ource 7 5ompany Personnel)

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A*A5#&I

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Ranjit Cadbury Project