CHAPTER-I

PLAN OF THE STUDY

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INTRODUCTION

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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.

The legend called Cadbury

1824 A once business was opened in 1824 by a young Quaker, John Cadbury, in Bull street
Birmingham 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.

1861 John 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.

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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.

1879 Business prospered from this time and Cadbury Brother outgrew the Bridge Street
factory, moving in 1879 to a Greenfield site some miles from the center of Birmingham which
came to call Bourneville. The opening of the 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.

1899 In this year the business private limited company Cadbury Brothers Limited. Progress
since the start of the century through the inter war years onward ahs been rapid. Chocolate has
moved being a luxury item to well within the financial reach of everyone.

1905 Cadbury 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.

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.

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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 milk chocolate not as merely as good as but 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.

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 Van Houten cocoa press from Holland that was the major break

5
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.

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 mid thirties 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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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.

Members: 12 district cooperative milk producers'

Union
No. of Producer Members: 2.36 million
No. of Village Societies: 11,333
Total Milk handling capacity: 6.9 million litres per day
Milk collection (Total - 2003-04): 1.81 billion litres

Milk collection (Daily Average 2003- 4.97 million litres

04):
Milk Drying Capacity: 511 metric Tons per day
Cattlefeed manufacturing Capacity: 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 reason why millions of people
choose Nestl products every day. Our consumers have come to trust in Nestls commitment to
excellence and turn to Nestl brands to maintain nutritional balance in a fast paced world.

Baby Foods:

Nutrition that suits the needs of your baby.

Dairy Products:

From shelf-stable solutions to chilled dairy.

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Breakfast Cereals:

Start your day out healthy with Nestl BreakfastCereals.

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.

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Beverages:

Drink to a healthy, active life with Nestl beverages.

Food Services:
Providing food and beverage professionals with a wide range of solutions.

Bottled Water:

Capturing nature in its purest form.

Petcare:

Nutrition, health and wellness for your pet.

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11
 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 earnings numbers.

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 sales 13.8 per
cent. In reality, the growth in sustainable net profits was 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.

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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 per cent in 1999 and 9.8 per cent in the first nine months
of 2000. In the 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).

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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'sKitkat 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 is relatively 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

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 aRs 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 and chocolate 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.

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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.

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 Parle Products), 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).

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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.

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 -- GroupeDanone 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 the
fundamentals, there could be some downside to the stock in the near-term.

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OBJECTIVE OF THE STUDY

My main objective of the study on this project is to demonstrate the marketing strategies of
Cadbury India Ltd. To analyze the company with its competitors 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 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 the chocolate industry.
To find out the satisfaction level of customer about their product.

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LITERATURE REVIEW

This report gives the help to the marketers for analyzing the different competitors in the
chocolate industry. These are the following some importance of this research report as under:
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.

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 CHAPTER-II
COMPANY PROFILE

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PRODUCT PROFILE
Chocolates and confectionary
DAIRY MILK

PICNIC

PERK

ECLAIRS

GEMS

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TEMPTATION

CRUNCHIE

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Cadburys success story

In 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 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 4 factors:-

Quality

Value for money

Advertising

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 CHAPTER-III
RESEARCH
METHODOLOGY

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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 she works in.

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.

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Sources of secondary data
Used to obtain information on, Cadbury and its competitor history, current issues, policies,
procedures etc, wherever required.
# Internet
# Magazines
# Newspaper

Sample Size
100 persons

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ANALYSIS AND OBSERVATION

SWOT ANALYSIS

Strength
1. Very strong brand equity in India.
2. Due to its 54 years presence in India has deep penetration 2100 distributors; 450,000
retailers, 60 mid urban (22%) customers.
3. Three sectors; Chocos (70% share), Confectionary (4%), food drinks (14% - leader in brown
segment).
4. Low cost of production due to economic of scale. That means higher profits and / or more
competitions. Better market penetration.
5. Second best manufacturing location throughout Cadbury Schweppes.

Weakness
1. Poor technology in India compared to current international technologies.
2. Ltd. Key products, only one central brand (CDM). Pralines range totally wising in India.
3. Make in India tag once the economy opens up wore and imports rush in.

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Opportunities
1. Tremendous scope for per capita consumption (160 gms of 8 10 kg)
2. Increasing per capita national income resulting in higher disposable income.
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 but will remain brand leader.

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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
4) Break
5) Perk
6) Gems
7) Eclairs
8) Nutties
9) Temptation
10) Milk Treat
II. Beverages
III. Food Drinks
1) Bournvita
2) Drinking chocolate
3) Cocoa

PRICING
Make no mistake. Second P of marketing is not another name for blindly 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.

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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

PHYSICAL DISTRIBUTION:- PLACE

BRAND ISNT THE ONLY ANY MORE. Marketers and finance manager 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 difficult for 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 and
population for consumption, and the marketer who can get to the to the consumer ahead of

29
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
confectionery major Parrys 11%. The company is looking to reduce this parity level. 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.

30
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
KhaneWalonKoKhaneKaBahanaChahiye for CMD and Thodi Si Pet Pooja
KabhiBhiKahinBhi for Perk have been sure shot winner with the audience.
Whirl with the new launched temptations with the slogan Too To Share the communication
resolves around the reluctance of a person 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 for much
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

31
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 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 ad spends 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 and prices, the
quicker becomes her search process.
Positioning of individual product:
1. CMD: is and always remain flagship brand. The punch by the company 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.

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 2. 5 star: although positioned internationally as an energy bar, 5 star was positioned on an
emotional platform in India during the late 1980s. Symbolizing togetherness, 5 star was
originally targeted 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 was re-launched during the
mid-nineties with a new name, Dairy Milk clairs.
4. Gems: broadcasting Gems, though, didnt prove to be feasible proposition 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 are the best brand to speak to children.
Colorful .
5. chocolate buttons appeal most to children and that is why Cadbury is re-targeting
children.
6. Crackle: it was the first Cadburys chocolate to have crunch in it. It was targeted as a
funky chocolate to add spark to life.
7. Perk: in September, 1995, Cadbury preempted the launch of Nestls Kit-Kat by rushing a
new brand, Perk into the market. 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

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 9) Temptation
10) Milk Treat
V. Beverages
VI. Food Drinks
1) Bournvita
2) Drinking Chocolate
3) Cocoa

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 CHAPTER-IV
DATA ANALYSIS AND
INTERPRETATION

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1. Do you eat chocolates?

yes; 26%

no; 74%

2. Which brand of chocolates do you use?

10% 1%
9%

cadbury
nestle
80% amul
others

3. Where do you buy chocolates from?

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 others; 11% super stores; 12%

movie halls; 24%

retail stores; 36%

restaurants; 17%

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

yes; 23%

no; 77%

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

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 perk; 10%

fruit & nut; 18%

dairy milk; 52%

5 star; 20%

6. Do you think Cadburys chocolate is easily available in the

market?

no; 4%

yes; 96%

7. Do you think standard prices of Cadbury are fair?

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 may be; 6%

no; 23%

yes; 71%

8. Do you believe that chocolate is a necessity or luxury?

necessity; 37%

luxury; 63%

9. Which Cadbury slogan/tagline comes to your mind first?

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 kya swaad hai zindagi mein; 8%
khane walo ko khane ka bahana chahiye; 9%
shubh aarambh; 19%

kuch meetha ho jaye; 63%

10. What according to you is the best feature of any Cadbury

advertisement?

visuals of chocolates; 1%

jingle and storyline; 37%

celebrity appearance; 42%

emotional appeal; 19%

11. What Cadbury advertisements are most appealing?

40
 radio; 18%
television; 27%

hoardings; 36% print; 19%

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 CHAPTER-V
FINDINGS AND
CONCLUSIONS

42
POSITION OF THE VARIOUS BRANDS IN THE MARKET HAS BEEN LISTED
BELOW
Cadburys brands Positioning Nestles brands Positioning
Cadbury Dairy The Real Taste of Classic Milk Positioned as an
Milk Life Chocolate affordable enriched
milk chocolate

Fruit n Nut Position as adults Bar One Positioned as

Creamy bar as an impulse any Trendy, Cool, any
Roast Almond time purchase time snack.
Crackle self expression
Bournvita values attached

5 Star / Perk/Break Perk Positioned KitKat Positioned as a

as Snacking snacking
consumption consumption
Thodisi Pet Have a Break,
Pooja Have a Kit Kat
5 Star Energy bar
Reach for the
Stars.

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 CONCLUSION

This company project has demonstrated COMPARISOIN OF CADBURY WITH ITS

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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 CHAPTER-VI
SUGGESTIONS AND
RECOMMENDATIONS

45
 SUGGESTIONS

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 base have 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
`Utilizing mass media to create and maintain brands.
Expand the consumer base. The company has added 8 million 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 product stability 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.

46
 The above are some steps being taken internally to improve future operation and
profitability. At the same time the management is also aware of external changes taking
place in the competitive environment and is taking steps to remain competitive in the
future environment of free imports, lower
barrier to trade and the advent of all global players in to the country. The management is
not unduly concerned about the huge deluge of imported chocolate brands in the market
place.
It is of the view that size of this imported premium market is look small to threaten its
own volumes or sales in fact, the company looks at the tree important as an opportunity,
where it could optimally use the global Cadbury Schweppes portfolio. The company
would be able to not only provide greater variety, but it would also be more cost effective
to test market new product as well as improve speed of response to change in consumer
preference through imports. The only concerns that the company has in this regard is the
current high level of duties, which limit the opportunity to launch value for money
products.

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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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BIBLIOGRAPHY

49
Philip Kotler (Eighth Edition) Marketing Management, Prentice Hall of India Ltd.

Advertising and marketing Magazine

Company Literature

Market survey and questionnaires

Web site: www.cadburyindia.com

Web site: www.google.com

Business World

50
ANNEXURES

51
 QUESTIONNAIRE
1. Do you eat chocolates?
Yes No

2. Which brand of chocolates do you use?

Cadburys
Nestle
Amul
Others

3. Where do you buy chocolates from?

Super stores
Retail Stores
Restaurants
Movie Halls
Others

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

Yes No

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

Chocolate Beverages
Biscuits Candy

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

Yes No

7. Do you think Standard price of Cadbury products are fair?

Yes No May be

8. Do you believe that chocolate is:

Luxury Necessity

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9. Which Cadbury slogan/tagline comes to your mind first?
kya swaad hai zindagi mein
khane walo ko khane ka bahana chahiye
kuch meetha ho jaye
shubh aarambh
any other

10. What according to you is the best feature of any Cadbury advertisement?
jingle and storyline
Emotional appeal
Celebrity appearance
Visuals of chocolates

11. What Cadbury advertisements are most appealing?

Television
Print
Hoardings
Radio

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