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Cadbury final report BY Jatish

Six Sigma (Amity University)

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SUMMER PROJECT REPORT SUBMITTED

TOWARDS THE PARTIAL FULFILLMENT OF
UNDER GRADUATE DEGREE IN BUSINESS
ADMINISTRATION

“AN ANALYSIS OF BRAND POSITIONING OF

CADBURY INDIA LTD."

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SUBMITTED TO SUBMITTED BY-

MS.ADITI BATHEJA
JATISH SHARMA
BBA+MBA (DUAL)
A3923014051
2014-2018

AMITY SCHOOL OF BUSINESS, NOIDA

AMITY UNIVERSITY – UTTAR PRADESH

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CERTIFICATE

This is to certify that I, MR .JATISH SHARMA, a student of Under Graduate Degree in

BBA+MBA (DUAL) (2014-2018), Amity School of Business, Noida has worked under the
able guidance and supervision of Assistant professor Ms. ADITI BATHEJA

This Term Paper report has the requisite standard for the partial fulfillment the Under
Graduate Degree in Business Administration. To the best of our knowledge no part of this
report has been reproduced from any other report and the contents are based on original
research.

I am aware that in case of non-compliance, Amity School of Business is entitled to cancel the
report.

Signature
JATISH SHARMA
Enrolment No.A3923014051

Signature of Project Coordinator Signature

(ADITI BATHEJA)

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DECLARATION

I, jatish sharma, declare that the project report entitled "An Analysis of Brand Positioning
of Cadbury India Ltd." being submitted to amity university , Noida (Approved by AICTE)
for the partial fulfillment of the requirement for the award of(BATCH OF 2014-18) is my
own endeavors and it has not been submitted earlier to any institution/university for any
degree.

JATISH SHARMA
BBA+MBA(DUAL)
A3923014051
SEM II

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ACKNOWLEDGEMENT

Thanks to the Almighty God who gave me the strength to accomplish the project with sheer
hard work and honesty.
May I observe the protocol to show my deep gratitude to the venerated Faculty-in-charge
Ms.ADITI BATHEJA, for his kind gesture in allotting me such a wonderful and elucidating
research topic. Her sincere and honest approach have always inspired me and pulled me back
on track whenever I went astray. I want to gratify the authors of great books which helped
me present the project the way it is now.
It would be very unjust to forget the names of some seniors while expressing my
thanks. Honestly speaking I feel pride to have such nice and cooperating seniors.
And how can forget the contributions of all my friends which lead me accomplice
this project so successfully. Last, but by no means the least, I would like to thank all the
members of ASB family in general and my blooming and charismatic friends in particular for
their wholehearted co-operation throughout the odyssey.

JATISH SHARMA
A3923014051

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TABLE OF CONTENTS

(Research Based)
Chapter No.Subject page no.

OBJECTIVES OF THE STUDY ………………….

SCOPE OF THE STUDY…………………
INTRODUCTION…………………………
MANAGERIAL USEFULNESS OF TE STUDY……………………….
SIGNIFICANCE OF CADBURY……………………….
VISION OF CADBURY……………………..
MISSION OF CADBURY………………..
SWOT ANALYSIS………………………
MARKETING STRATEGIES………………
FINDINGS AND RECOMENDATION…………………………..
SUGESSTIONS…………………………
CONCLUSION……………………….

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OBJECTIVE OF THE STUDY

 To study the strategies & measures adopted by Cadbury for positioning its brands in the

market.

SCOPE OF THE STUDY

The study is restricted to delhi only. Efforts have been to have consumers surveyed in

Delhi

1. Marketing research has its importance not only for consumers market but also it survey

effectively to the producer of goods and services. The use of marketing research in

consumer market may be explained on the basis of following services rendered by it.

2. It ascertains the position of a company in specified Industry.

3. It indicates the present, future trend of Industry and point out how the company’s affairs

are being turned up.

4. It helps in development and introduction of new product.

The data collected by me it includes both primary and secondary data

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METHODOLOGY

Research in common parlance refers to a search for knowledge. One can also define

research as a scientific and systematic search for pertinent information on a specific topic. In

fact, research is an art of scientific investigation. The Advanced Learner’s Dictionary of

Current English lays down the meaning of research as a careful investigation or inquiry

especially through search for new facts in any branch of knowledge. Redman and Mory

define research as a “systematized effort to gain new knowledge.” Some people consider

research as a movement from the known to the unknown. It is actually a voyage of discovery.

Marketing Research is a process of collecting and analyzing marketing information

ultimately to arrive at certain conclusion. The purpose of this research is to describe the

research procedure. Research Methodology is the mean to plan out the working process or the

course of action to reach the objective. It is extremely crucial and holds the key to the success

of the survey. Cadbury India ltd. is which is marketing products having different products.

Thus a survey method of marketing research is essentially exploratory in nature.

SECONDARY DATA

 Secondary data was collected through websites, books, magazines, newspapers etc.

I think that this report will help the customer to know about the brand positioning in Cadbury

and make the readers aware how the research I taking place for Cadbury ltd

INTRODUCTION

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Cadbury dominates the chocolate market with about 71% market share. Nestle has
emerged as a significant competitor with about 23% market share. Key competition in the
chocolate segment is from co-operative owned Amul and Camp co, besides a host of
unorganized sector players. There exists a large unorganized market in the confectionery
segment too. Leading national players are Parry's, Ravalgaon, Candico and Nutrine. MNC's
like Cadbury, Nestle, Perfetti, are recent entrants in the sugar confectionery market. Other
competing brands such as GCMMF's Badam bar and Nestlé’s Bar One have minor market
shares.

Chocolate consumption in India is extremely low. Per capita consumption is around

160gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas, it is
even lower. Indian chocolate market grew at the rate of 10% pa in 70's and 80's, driven
mainly by the children segment. In the late 80's, when the market started stagnating, Cadbury
repositioned its Dairy Milk to any than an occasional time product rather luxury. Its
advertisement focused on adults rather than children. Cadbury's Five Star, the first count
chocolate, was launched in 1968. Due to its resistance to temperature, the chocolate has
become one of the most widely distributed chocolate in the country.

FUTURE PLANS OF CADBURYS INDIA LIMITED

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Confectionery Industry

The confectionery industry in India is approximately divided into:

 Chocolates
 Hard-boiled candies
 Éclairs & toffees
 Chewing gums
 Lollipops
 Bubble gum
 Mints and lozenges

The total confectionery market is valued at Rupees 41 billion with a volume turnover of
about 223500 tonnes per annum. The category is largely consumed in urban areas with a
73% skew to urban markets and a 27% to rural markets.

Hard boiled candy accounts for 18%, Éclairs and Toffees accounts for
18%, Gums and Mints and lozenges are at par and account for 13%.
Digestive Candies and Lollipops account for 2.0% share respectively.

Overall industry growth is estimated at 23% in the chocolates segment

and sugar confectionery segment has declined by 19%.

Cadbury with Dairy Milk, Perk, Gems, 5 Star, Celebrations, Bytes, Dairy Milk Éclairs,
Éclairs Crunch, Mr. Pops and Halls brands is a key player in the chocolate, éclairs,
lollipops, and mints segments.

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Milk Beverages
The Milk Beverages industry is valued at Rupees 16.1 billion with an
annual turnover of approx 63,000 tonnes. As per Nielsen estimates the
industry is growing at 10.1%.
Cadbury is a key player in the segment with Cadbury Bourn vita and
Cadbury Bourn vita 5 Star Magic

MANAGERIAL USEFULNESS OF THE STUDY

1. Cadbury has begun recruiting management graduates in India to serve its global

operations.

2. Factors for success: extensive distribution network, strong brands, customization to

Indian market.

3. For Cadbury, India is: huge potential market, source of managerial talent.

4. Future plans, India: To explore larger portfolio or growth. To look for opportunities in

SAARC region.

SIGNIFICANCE OF CADBURY
In this global and competitive era all business activity needs more complex superior

and enhanced technology. In the present scenario chocolate industry has become more

consumers oriented.

Research becomes a necessary for business activity to accelerate the business in a

greater pace. Researcher shows the current position as well as strength and weakness of an

organization and product, which helps in the formation of business plan. In the other hand

opponents are waiting for us to take erroneous decision and take advantages of the situation.

We can counter their move only through dynamic and effective tool of marketing research.

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So it was a great pleasure to contribute to the dynamic field of marketing in the

chocolate industry. The present research work on Cadbury has a significant role for

organization to evaluate its policy and enhance their position in the market. The research

work also shows the relationship between retailer-organization, retailer-customer,

organization-customer, which is as important system as nerve system in human body

VISION OF CADBURYS INDIA

To become a performance driven and values led organization. Throughout changing
times, our constant values have inspired us to be pioneers in business and in corporate
responsibility. They help ensure we are proud of our company and are critical to our core
purpose of creating brands people love.

MISSION OF CADBURYS INDIA

Performance mission: We are passionate about winning. We compete in a tough but fair
way. We are ambitious, hardworking and make the most of our abilities. We are prepared to
take risks and act with speed.

Quality mission: We put quality and safety at the heart of all of our activities - our products,
our people, our partnerships and our performance.

Responsibility mission: We 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.

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PROBLEMS OF THE ORGANIZATION

 It is not a hidden fact the Cadbury has its own image or brand which shows the value of
money for its product. The Cadbury have a great product line and depth.

 If we give a overall look on the all market position of Cadbury product almost all product
have a great market share in other hand all product are market leader with their grater
sales volume and high turnover. But in case of Cadbury snacks and beverages the position
of Cadbury is not satisfactory. The company has separate distribution channel for
chocolate, they are giving high priority to confectionery products. They are providing
easy replacement, high penetration, and regular visit to retailers shop. Most importantly
they are providing cool storage equipment to their retailers and them positioning their
product through heavy advertisement campaign.

 Recently the Cadbury Chocolate is re-lunched in market but the position remains same,
which is very critical for the company. After re-lunched, the sale volume and customer
awareness about the all chocolate products remain unsatisfactory, which create harsh
situation for all organization. Company highly willing to excel in the chocolate field there
are some problem, which is adversely influence the organization.

 There are some problems, which is as follows: -

 Competitors position in market
 Vast distribution channel which deals almost all product
 Replacement

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S.W.O.T ANALYSIS OF THE ORGANIZATION

STRENGHTS
1. Cadbury is a company, which is reputed internationally as the topmost chocolate
provider in the world.
2. The brand is well known to people & they can easily identify it from others.
3. Cadbury the world leaders in chocolate, is a well-known force in marketing and
distribution.
4. Users have a positive perception about the qualities of the brand.
5. Cadbury main strength is Dairy milk. Dairy milk is the most consumed chocolate in
India.
6. By using popular models like Cyrus Brocha, Pretty Zinta and others Cadburys has
managed to portray a young and sporty image, which has resulted in converting
buyers of other brands to become its staunch loyalists.
7. Cadbury has well adjusted itself to Indian custom.
8. It has properly repositioned itself in India whenever required i.e. from children to
adults, togetherness bar to energizing bar for young ones etc.

WEAKNESSES
1. There is lack of penetration in the rural market where people tend to dismiss it as a
high end product. It is mainly found in urban and semi-urban areas.
2. It has been relatively high priced brand, which is turning the price conscious customer
away.
3. People avoid having their chocolate thinking about the egg ingredients.
4. Lack of launch of new products & Flavors.

OPPORTUNITIES
1. The chocolate market has seen one of the greatest increases in the recent times
(almost @ 30%).
2. There is a lot of potential for growth and a huge population who do not eat chocolates
even today that can be converted as new users.
3. Using information and technology to bring efficiency in logistics and distribution

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THREATS
1. There exists no brand loyalty in the chocolate market and consumers frequently shift
their brands.
2. New brands are coming and existing brands are introducing new variants to add up to
an already overcrowded market.
3. The company has large exposure to foreign currency exchange rate risk, mainly on
account of imported cocoa beans and cocoa butter in US Dollar and Pound Sterling.

MARKETING STRATEGIES

Cadbury introduced a new global marketing strategy called 'Choose Cadbury'. This

strategy came about as a result of extensive research into consumer behaviors and perception.

It is a campaign that perfectly illustrates how a brand can evolve and how different messages

can be communicated without losing the core strength and brand values that are already

established.

The classic icons have played a major role in establishing the look and feel of how

Cadbury's advertisements should look through successive campaigns. These key 'look and

feel' icons were heavily researched to ensure that the messages they impart are always

relevant to the Cadbury consumer. In depth customer research is conducted to 'test' these

messages.

Research results confirmed that colors recognition of dark purple is strongly

associated with Cadbury. Its logo is readily recognized and scores a ninety six per cent

recognition level alongside other global brands such as Coca Cola and McDonalds. The glass

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and a half symbol, which plays a key role in the 'Choose Cadbury' strategy, continues to

communicate the quality and superior taste of Cadbury's chocolate.

Cadbury introduced a new global marketing strategy called 'Choose Cadbury'. This

strategy came about as a result of extensive research into consumer behaviors and perception.

It is a campaign that perfectly illustrates how a brand can evolve and how different messages

can be communicated without losing the core strength and brand values that are already

established.

The classic icons have played a major role in establishing the look and feel of how

Cadbury's advertisements should look through successive campaigns. These key 'look and

feel' icons were heavily researched to ensure that the messages they impart are always

relevant to the Cadbury consumer. In depth customer research is conducted to 'test' these

messages

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The graph shows that Cadbury's India Ltd. tops with 59% share of the advertising pie on
television. Nestle India Limited grabs the 2nd position with 28% share, whereas, Parle
Products gets the 3rd position with 5% of the advertising share. Other advertisers who could
make up to the top 5 are amul and Ravi foods. The brands that are advertised the maximum
by the Cadbury’s India Ltd.

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FINDINGS & RECOMMENDATIONS

FINDINGS

 In the age group of 16-20 and 21-30, the average monthly spend is not influenced by the
place of residence/ social class but rather on, where a person studies/works i.e by the
social] circle of his friends and colleagues.

 The consumers by and large are satisfied with the present choices available in chocolates
i.e. there are no complaints of consumers as regards to existing varieties of chocolates.

 However there are many new wants and demands of consumers in terms of new flavors
and ingredients of chocolates which the present brands of chocolates have not introduced
into the Indian markets.

 There is a substantially low margin of difference in terms of people who are sensitive to
price of chocolates and hence it cannot be proved conclusively that introducing a
chocolate at a lesser price than the prevailing price will lead to capturing of market share.

 Consumers attach more value to the brand of the chocolates as well as the packaging i.e.
the quality of the chocolates.

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RECOMMENDATIONS

Cadbury’s Dairy Milk is undeniably the leader brand of not only the Cadbury’s basket
but also the chocolate segment as a whole and is in a sense almost generic to the category in
the country. Cadbury’s Dairy Milk must therefore through its media posture be the brand
champion and carry the brand message. With half the advertising spends of Cadbury’s,
Cadbury’s Dairy Milk must build on the brand equity through a premium marketing strategy
that reflects in the media communication and positioning as well. This would translate to
large and continuous brand presence. Television is the advised primary medium of
communication as it has mass reach, a favorable image, high prestige value and is attention
getting while having low cost per exposure for a high absolute spend.

The media will go hand-in-hand with the advertising in reaching the expanding target
audience the brand is reaching out to. Herein, the media must also supplement the youthful
exuberance and rebelliousness of the advertising communication. Caution should be
maintained not to dent brand equity while increasing penetration in smaller towns by
usinglocally targeted media channels in a manner that will allow capitalization of the
‘premium nesses of the brand.

SUGGESTIONS

The following are some of the suggestions prepared for Cadbury

1. Chocolate should be available everywhere.
2. They should introduce calorie free or low calorie chocolate.
3. They should provide packs of all sizes so that it can be afforded by anyone.
4. The chocolate should have attractive packaging.
5. The chocolate should be energizing and healthy to eat.
6. Provide different taste of chocolates. Inform about the ingredients on back of all packs.
They should make absolutely vegetarian chocolates.
7. Price should be kept low even when the chocolate is successful. It should be able to
replace snack if consumed i.e. heavy when eaten.

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CONCLUSION

It is concluded that Cadbury India Ltd. is providing the best quality products as per the
needs of the consumers. They should take care of the Indian customs by providing pure
vegetarian products... At present CIL striving for international quality in their products
and processes.
As per price of the product should be kept low as compared to its competitors, the product
should be purchasable by all i.e. even a middle class family people can buy it. They
should provide value for the money paid for the product. Initially they should cut on
profits and keep prices low.
As per packaging of the product should be very attractive, by looking at the packet
consumer should be tempted to buy it. The product should also be available in various
sizes. The product package should create an image in the minds of the people like purple
color for Cadburys.
As per promotion campaign, which would take care of exhibitions, and sponsorship on
television program’s and festivals and fairs, as a promotional tool they should distribute
free sample among people. This can be mainly done outside schools and colleges areas
where they mainly find young people on whom the product is mainly aimed.
As per growth of their market share through aggressive product development, focusing on
cost competitiveness and productivity in their operations and innovative utilization of our
assets, investing to develop our people.
As per encourage its customers to give their feedback regarding the product. On the
wrapper of the product the company suggests the customer to contact them either by mail
or phone in case the consumers are dissatisfied with the product.
Due to its brand value company should win the hearts of consumer and thus enjoys word
of mouth influence i.e. personnel communication-one consumer acts as the other
consumer’s buying guide and advices him to buy the product. Non-personnel
communication is media that carries message without personal contact with the consumer.
Major media consists of print media, and display media, and broadcast media. Company
should adopt the combination of all these three media. But they use the broadcast media
and lastly the print media.

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BIBLIOGRAPHY

BOOKS & MAGAZINES

1. Belch.E.George and Belch. A. Michael, “Advertising and Promotion “Sixth Edition 4,
2009, Tata McGraw Hill.

2. Kotler Philip,” Marketing management “Eleventh Edition, Pearson Education.

3. S Neelamegham, Marketing in India (cases & readings), Edition 2 , 2009

4. Rajendra Nargundkar & Tapan k Panda, Marketing strategies for emerging markets,

5. Harsh Verma, Brand management( text & cases ),

6. Super brands India business world magazines

WEBSITES
1. http://www.cadburyindia.com/.
2. http://www.indiainfoline.com/.
3. business2000.com
4. brandweek.com
5. myiris.com
6. adexindia.com

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