PREFACE

Marketing should not be looked upon in a vacuum or in isolation. It is

an essence taking a view of “MARKETING STRATEGIES OF TOP FIVE BRANDS OF
CHOCOLATE”. the whole business organization and its ultimate objective
concern for marketing must penetrate all areas of the enterprise. Market
survey in today’s competitive world is a must for every organization.

This project is a study of. The rational behind this particular study is
to find out the present market scenario of various brands & to find out the
corporate need and perception. It was a pleasurable experience to conduct
a research on behalf of TOP FIVE BRANDS OF CHOCOLATE. pertaining to the
study of the Chocolate Sector.

Conclusion and there by recommendation has been arrived at by

proper and justified interpretation of the result derived from the above
said analytical tools and techniques.

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 ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate
enough to get support from a large number o persons. I wish to express my deep
sense of gratitude to all those who generously helped in successful completion of this
report by sharing their invaluable time and knowledge.

It is my proud and previledge to express my deep regards to Respected , Head

of Department Dr.Pramesh Gautam, Mr.Chaitanya Kaushakiya, Department of
Business Management , Swami Vivekanand Institute of Technology, College Sagar for
allowing me to undertake this project.

I feel extremely exhilarated to have completed this project under the able and
inspiring guidance of Mr.Chaitanya Kaushakiya He rendered me all possible help me
guidance while reviewing the manuscript in finalising the report.

I also extend my deep regards to my teachers , family members , friends and

all those whose encouragement has infused courage in me to complete to work
successfully.

(RISHI SEN)
B.B.A IInd Sem.

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 DELCLARATION BY THE CANDIDATE
Date :

I declare that the project report titled " TOP FIVE BRANDS OF CHOCOLATE "

on Market Segmentation is nay own work conducted under the supervision of

Mr.Chaitanya Kaushakiya Department of Business Management , Swami Vivekanand

Institute of Technology, College Sagar To the best of my knowledge the report does

not contain any work , which has been submitted for the award of any degree ,

anywhere.

(RISHI SEN)
B.B.A IInd Sem.

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 CERTIFICATE
The project report titled " MARKETING STRATEGIES OF TOP FIVE BRANDS

OF CHOCOLATE " been prepared by Mr. Rishi Sen BBA IInd Semester , under the guidance and

supervision of Mr.Chaitanya Kaushakiya for the partial fulfillment of the Degree of B.B.A.

Signature of the Signature of the Signature of the

Supervisor Head of the Department Examiner

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 CONTENTS
PAGE NO.
TOPIC
TITLE

1. Preface

2. Acknowledgement

3. Declaration of the Candidate

4. Certificate

5. Introduction of Nestle

6. History of Nestle

7. Scope of the Study

8. Limitation of the Study

9. Research Methodology

10 Market Segmentation

11 Company Comparison

12 Data analysis & Interpretation

13 Swot Analysis of Nestle

14 Findings

15 Suggestions & Recommendation

16 Conclusion

17 Bibliography

18 Questionnaires

INTRODUCTION

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 In this research I have survey the product performance and buying

behaviour of two famous brands of chocolates – Nestle , which are consumed

by people of all ages. During this research I have interacted with people of

“Sagar”. After this research I came to know how people perceives these

products on the variables like price, quality, advertisement, satisfaction, taste,

packaging, brand loyalty etc. I also came to know which particular brand of

chocolate is most preferred by people of different age groups. In this research I

have surveyed that how frequently and how much chocolate they consume,

whether they buy small, big or family pack. Trend of ongoing changes in their

likings has been shown in the report. In this report I have tried to explain the

entire research and facts product wise.

Overview of the Company

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 Cadbury India is a food product company with interests in Chocolate Confectionery, Milk
Food Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate Confectionery
business with a market share of over 70%. Some of the key brands of Cadbury are Cadbury
Dairy Milk, 5 Star, Perk, Eclairs, Celebrations, Temptations, and Gems. In Milk Food drinks
segment, Cadbury's main product - Bournvita is the leading Malted Food Drink in the
country. 

Its heritage can be traced back in 1824 when John Cadbury opened a shop in Birmingham
selling cocoa and chocolate. Since then we have expanded our business throughout the world
by a program me of organic and acquisition led growth. On 7 May 2008, the separation of our
confectionery and Americas Beverages businesses was completed creating Cadbury plc with
a vision to be the world's BIGGEST and BEST confectionery company.

 We make and sell three kinds of confectionery: chocolate, gum and candy

 We operate in over 60 countries

 John Cadbury opened for business in 1824 - making us nearly 200 years young

 We work with around 35,000 direct and indirect suppliers

 We employ around 45,000 people

 Every day millions of people around the world enjoy our brand

Cadbury is the world's largest confectionery company and its origins can be traced back to
1783 when Jacob Schweppe perfected his process for manufacturing carbonated mineral
water in Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoa
and chocolate. Cadbury and Schweppe merged in 1969 to form Cadbury Schweppes plc.
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. In 1905, Cadbury's top
selling brand, Cadbury Dairy Milk, was launched. By 1913 Dairy Milk had become
Cadbury's best selling line and in the mid twenties Cadbury's Dairy Milk gained its status as
the brand leader. Cadbury India began its operations in 1948 by importing chocolates and
then re-packing them before distribution in the Indian market. Today, Cadbury has five
company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior),
Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota

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and Chennai). Its corporate office is in Mumbai. Worldwide, Cadbury employs 60,000 people
in over 200 countries. 

WHAT IS BRAND?

A brand is a name sign symbol slogan or design or a combination of these, intended to

identify the goods and services of one seller and to distinguish them from those of
competitors". Branding helps differentiate products and can be a powerful tool of competitive
strategy. While products can come and go over time, brands (if properly managed) can live
indefinitely. Brands have many benefits for companies and consumers. For companies; strong
brands add value, and consumers develop positive associations with the brand and are less
likely to purchase competitors’ products. This means the brand can act as a barrier to
competition. For consumers, brands help them to quickly identify products and make shopping
easier. Strong brands carry a guarantee of quality which consumers trust and are often willing
to pay more for. Consumers will pay a premium price for a branded product if they believe
they it provides a higher value.

Building strong brand is an important marketing strategy for companies, enabling premium
pricing and making widespread distribution easier to achieve. Brand loyalty helps create and
sustain high sales and profit. Brand equity is the value of a brand based on the extent to
which its has brand loyalty, brand name awareness, perceived quality and strong brand
association.

DEVELOPING A BRAND

A brand identity is the message sent out by the brand through its name, product shape and

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design, visual symbols (such as logos), advertising etc. This identity needs to be planned by
brand management, as this is key to gaining market acceptance and leadership.

The Brand Pyramid - Brand Meaning

Brand core

Brand proposition

Brand style

Brand themes

A brand pyramid can help managers plan and analyze a brand’s identity. The top tier of the
pyramid consists of brand core. Brand core values are the genetic code of the brand and
remain the same overtime. Closely related to these values is the brand proposition : the
promise the brand makes to the consumer. This proposition should be easy to understand and
appeal to the target market. The middle tier represents the brands style or elements of the
brands’ identity that represents the self image of the brand of the brand and need to be
relatively stable over time. The base of the pyramid is formed by the brand themes which are
concerned with the brand currently communicate The top tier of the pyramid consists of the Brand
br and core.
core
through its advertising, packaging, fashion, technological developments and changing
consumer tastes.
.
The brand pyramid helps managers understand the strengths of the brand and ensure
consistency of its message. This also helps to identify the opportunities for brand stretching
physical appear ance etc. Brand themes are flexible and change with
and brand extensions. A brand extension is the use of a well known brand name on a new
product category. We will discuss this in relation to the DAIRY MILK brand. Brand starching
is the use of an established brand name in unrelated markets or product categories , e.g. using
physical appear ance etc. Brand themes are flexible and change with
a well known designer name on cosmetics, clothes, sunglasses etc, such as “John Rocha
Waterford Crystal”

CADBURY: THE BRAND

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The brand CADBURY enjoys a high level of brand equity. Researches show 90% of the
people recognizes the brand while 74% state that when it comes to chocolate only
CADBURY will do.
There are three main brand name strategies:

Family brand names: The parent brand is also known as an “umbrella” brand. This term is
given to product ranges where the family brand name is used for all products. The advantage
of this approach is the positive associations with the parent brand will transfer to all sub

Individual brand names (orInmultibrands):

this case each
brands. The risk however is that that if one brand is unsuccessful or falls into disrepute, the
reputation of the complete family of brands can be tarnished. Cadbury is a family brand .\

Individual brand names (multi brands): in this case each brand is created and named
separately and has separate identity. Using a family brand may not be that suitable as brand
values may be far apart.

Combination brand names: This approach allows for the optional use of the corporate brand
name, while allowing an individual brand to be identified, e.g. Cadbury Dairy Milk.

Cadbury uses a combination of brand strategies. The family brand ,Cadbury is linked with its
famous sub brands , i.e. Cadbury Crème Egg, Cadbury Roses and Cadbury Flake to name a
few. The family brand identity is style communicated by packaging with the Cadbury

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corporate purple color and the distinctive Cadbury script logo. The sub brand is then
distinguished by its own individual livery.

Recently marketers have identified particularly strong family or corporate brands as

MASTERBRANDS. Cadbury is such a brand. However, a true Masterbrand is more than name
of the company – it incorporates the company’s mission, vision and values, representing them
in a way that is easily understood by consumers. IBM is another example of MASTERBRAND.

Cadbury’s core brand values include "life’s everyday pleasures that make us feel good and
never let us down. As a reward or a pick me up, we consumer s trust Cadbury chocolate to
make us feel better

BUILDING A MEGABRAND: CADBURY DAIRY MILK

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~ 12 ~
~ 13 ~
~ 14 ~
In the last year there has been a major development in brand strategy at Cadbury y Ireland.
The Cadbury Dairy y Milk brand has been stretched to become a family brand in its own
right. Of all the successful Cadbury brands, the one with the greatest loyalty is Cadbury Dairy
y Milk. In 2002 more than 19 million Dairy y Milk products were sold. Cadbury y made a
strategic marketing decision to leverage the value of the Dairy Milk brand (i.e. optimize the
market potential of the brand ) by elevating it to a Megabrand or range brand.

A Megabrand or range brand spans an entire range of products, creating, relationships with
products which may have been previously unseen by customers.

The rationale for a mega brand:

1. The Megabrand concept can help provide structure and unity to a strategy.
2. A Megabrand strategy can add visibility to products and provide greater credibility to
consumer s for a variety of offers under the brand. In addition, it is easier for consumer to try
new offers from their trusted brand.

Megabrands provide economies of scale as the fixed costs of maintaining a brand name can be
spread across the sales of numerous product lines. Creating and maintaining brands has
become very expensive. Stand alone it increasingly difficult to compete with Megabrands.
Other factor s leading to the emergence of the Megabrand include growing
Pressures and greater global competition. Megabrands are better resourced and have a greater
chance of success than standalone brands.

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The parent brand
Family
is alsobrand
knownnames
as an:
SCOPE OF THE MEGABRAND

When developing a Megabrand, products are chosen for inclusion on the basis of their
compatibility with the brand’s identity. For Cadbury, the (blocks) chocolate brands were
included as they were perceived as variants of Dairy Milk. The core proposition of the new
Dairy Milk Megabrand could be described as ‘delivering recipes for lives upbeat occasions -
i.e. no matter what your humor or the occasion, Cadbury Dairy Milk will provide the perfect
accompaniment’
Two products in the Cadbury range created a dilemma: Wispa and Caramel. Both were
standalone products with distinctive identities. Both had a loyal consumer base high should
not be abandoned. To incorporate these products into the Dairy Milk range called for a fresh
strategy.
Both were blocking chocolate and provided a fit with the Dairy Milk Megabrand. Their
inclusion provided the opportunity to further leverage.
The Dairy Milk Megabrand without alienating loyal consumer s. The new Dairy Milk Bubbly
brand benefited from a new name which better conveys the distinctive "mouth feel" of Wispa.
The new aerated chocolate product now in square form, which is also easier to break, proved
popular. Test showed that 85% of Wispa consumers were likely to buy Dairy Milk showed
that 85% of Wispa consumers were likely to buy Dairy Milk, while 89% of Caramel
customers indicated their likelihood to buy the new Dairy Milk Caramel.

Other range refreshment initiatives involved deleting some products such as Banoffi while
incorporating new variants like Cadbury Dairy Milk Orange Shots. This approach will keep
the range fresh!!!!!!!

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CADBURY AND ITS PRODUCTS

Cadbury Boost is a chocolate bar made by Cadbury Ireland in the Republic of Ireland, and

sold in the UK by Cadbury UK and also sold in Australia and South Africa. Its wrapper says
that it consists of milk chocolate with caramel and biscuit filling. The wrapper also states that
Boost is "Charged with glucose."

Cadbury Brunch Bar is a bar of cereals (oats, bran flakes and crispies) bound
with honey and half covered in milk chocolate. They come in a variety of flavours: Raisin,
Hazelnut, Apricot & Almond, Cranberry & Orange, Fruit & Nut, Mixed Berry, Chocolate
Chip and Toasted Coconut and is made by Cadbury UK.

They are breakfast type bars that are quick to eat in, and ideally as a slightly healthier and
more wholesome snack option to chocolate bars.
Cadbury Caramilk is a caramel-filled chocolate bar made by Cadbury Adams in Canada. It
was first sold in 1968.[1]

Variations available, some of them limited editions, include Caramilk made with dark
chocolate maple, chocolate, or cappuccino. "Chunky" (thicker) versions called Caramilk
"Thick" and cylindrical versions called "Caramilk Rolls" (similar to Rolo) have also been
introduced.

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Crispy Crunch is a hard chocolate bar with a crispy peanut flake inside that is made
by Cadbury. Crispy Crunch is sold in Canada. Crispy Crunches were sold in the United
States for a brief time in the 1990s by the food distribution arm of Pro Set, the collectible
card company. Pro Set went bankrupt, resulting in Crispy Crunch no longer being available in
the United States. A lower-calorie version of Crispy Crunch was available for a limited time
in the mid-1990s. The original manufacturers, Neilson, sold all their chocolate brands to
Cadbury in 1996, though packaging continued to feature the Neilson logo for a few years.
Since Cadbury began manufacturing of the chocolate bar, the recipe has changed in that it is
less salty and more sweet as it has a more of the crunchytopaz coloured candy coating
around the centre.

Bar and a Half

In June 2009 Cadbury launched the "Cadbury Dairy Milk Bar and a Half" range as a
replacement to the Cadbury Dairy Milk "8 chunk" across several Dairy Milk variants. The
concept is that the bar is to be more "portionable", so parts of the bar can be "saved for
later" although the bar is the same as the old 8 chunk but in Fruit and Nut, Whole Nut and
Standard. This bar has the new logo and packaging.

A similar technique has been introduced with Cadbury Double Decker and Cadbury Boost
bars. However instead of larger bars, two separate bars are packaged together and are
called "Duo". Both brands received a packaging refresh at the same time.

Cadbury Dairy Milk Caramel is a chocolate bar that is part of the Cadbury Dairy Milk brand
and is made by Cadbury UK and Cadbury Ireland. The bar is sold in the United
Kingdom and Ireland. The bar was first launched in 1976, originally called Cadbury
Caramel until 2003, when it was renamed. In early 2009 it was relaunched, with
the Caramel name re-emphasised as the main on-pack brand, and the Dairy Milk brand
reduced in size. he product is a Cadbury Dairy Milk chocolate bar semi-divided into blocks

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each of which has a caramel filling. The blocks vary in shape and number according to the
size of the bar, but on all bars, the blocks are stamped with the word Cadbury on the top.

Cadbury celebrations :
Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry-
fruits during festive seasons.

Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5

Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk
chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and
caramels.

The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an
exotic range of chocolate covered dry fruits and nuts in various flavours and the premium
dark chocolate range which is exotic dark chocolate in luscious flavours.

Cadbury Celebrations has become a popular brand on occasions such

as Diwali, Rakhi, Dussera puja. It is also a major success as a
corporate gifting brand. The communication is based on the emotional
route and the tag line says "rishte pakne do" which fits with the brand
purpose of strengthening your relationships with something sweet.

Cadbury five star

Cadbury 5 Star needed to introduce an element of surprise in its eat experience to gain
share among lapsed consumers. To do this the variant Cadbury 5 Star Crunchy was
launched- which still had the richness of caramel, chewiness of nougat but also contained
rice crispies. In o rder to engage youth the campaign was executed acrossTV, radio, internet,
outdoor and print media.

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Cadbury Perk:

A pretty teenager; a long line, and hunger! Rings a bell? That was how Cadbury launched its
new offering; Cadbury Perk in 1996. With its light chocolate and wafer construct, Cadbury
Perk targeted the casual snacking space that was dominated primarily by chips & wafers.
With a catchy jingle and tongue in cheek advertising, this 'anytime, anywhere' snack zoomed
right into the hearts of teenagers.

Raageshwari started the trend of advertising that featured mischievous, bubbly teenagers
getting out of their 'stuck and hungry' situations by having a Cadbury Perk. Cadbury Perk
became the new mini snack in town and its proposition "Thodi si pet pooja" 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. To compliment Cadbury Perk's values, the bubbly and vivacious
Preity Zinta became the new face of Perk with the 'hunger strike' commercial in the mid
90's.

Cadbury Gems :

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The saying "Good things come in small packets" has been proven right many a times and it
couldn't have been truer for the pretty chocolate buttons called Gems. Who can forget the
unique, brightly colored chocolate buttons with crispy shells, encased in a pack that's as
colorful as the product itself? Unrivalled in all these years, Cadbury Gems has captured
every consumer's fantasy for almost 4 decades. Little wonder that Cadbury Gems, the brand
that came into India in 1968 is still going strong.

Cadbury Gems brings happiness to the consumer's world. With this promise in mind,
Cadbury Gems has always had 'Masti' as the key proposition in all its communication. In
fact, Cadbury Gems is always a willing ally for pranks and fun.

Cadbury Bournvita :

Cadbury was incorporated in India on July 19th, 1948 as a private limited company under
the name of Cadbury-Fry (India). Cadbury Bournvita was launched during the same year. 
It is among the oldest brands in the Malt Based Food / Malt Food category with a rich
heritage and has always been known to provide the best nutrition to aid growth and all
round development.

Throughout it's history, Cadbury Bournvita has continuously re-invented itself in terms of
product, packaging, promotion & distribution. The Cadbury lineage and rich brand heritage
has helped the brand maintain its leadership position and image over the last 50 years.

INTRODUCING CADBURY AS AN AFTER DINNER SWEET

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One of the biggest marketing strategy followed by Cadbury in India was introducing Cadbury
as an after dinner sweet. Indians are fond of having dessert after their dinner. Cadbury aimed
at replacing the traditional sweets. Apart from its after dinner advertisement Cadbury targeted
adults rather than children. In most of its advertisements, the brand is endorsed and advertised
by adults rather than by children even though it basically sells chocolate. Such type of
advertisements have created a very wide range of consumers for Cadbury. Its products are not
limited to children alone. Adults like the products of Cadbury as much as children do.
To promote the new Dairy Milk
This is the creed or genetic code of
Brand
the brand;
core:
campaign. This involved a highly Megabrand, Cadbury implemented a

Another reason for Cadbury being such a successful brand was that it aimed at replacing the
traditional sweet custom so prevalent in India. Indians have the habit of carrying sweets as
gifts when they visit a friend or relatives. Cadbury items became the new sweets. It was not
only considered better but also superior to carry Cadbury instead of the normal sweets.
Cadbury also aimed at selling in bulk during festive seasons such as diwali and rakhi.

Diwali and rakhi packs are designed to give a feel of the festivities going on. They are
exclusively indianised. The chocolate packs contain special chocoloates such as dry fruits
rich chocolates as people normally serve dry fruits during diwali.

COMMUNICATING STRATEGY

To promote the new dairy milk megabrand , Cadbury implemented comprehensive “360
degree support” campaign. This involved a highly coordinated set of promotional activities
across various communications channel each activity bearing the same message . This
approach is known as integrated marketing communications and ensures that consumers
receive a clear and consistent message about a brand.

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The 360 degree support campaign include a point of sale competition to win a new look , new
display units , a buy-two-get-one free promotion on 100g bars, PR and advertisements in the trade
press. The result was that sales of the new Megabrand products exceeded targets by 12 % !!

OBJECTIVES OF THE STUDY:

1. To get familiar with their marketing strategies separately.

2. To view the segments being targeted by these brands in the market.

3. Up to what extent do the public respond to their products?

4. To prepare a marketing plan for any brand that is planning to enter

the India Chocolate Market.

5. To be a relevant guide for any brand launch in India.

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 LIMITATIONS OF THE STUDY
In attempt to make this project authentic and reliable, every possible
aspect of the topic was kept in mind. Nevertheless, despite of fact constraints
were at play during the formulation of this project. The main limitations are as
follows:
 Due to limitation of time only few people were selected for the study. So the
sample of consumers was not enough to generalize the findings of the study.
 The main source of data for the study was primary data with the help of self-
administered questionnaires. Hence, the chances of unbiased information are
less.
 People were hesitant to disclose the true facts.
 The chance of biased response can’t be eliminated though all necessary steps
were taken to avoid the same.

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 RESEARCH METHODOLOGY

As mentioned earlier, the objective of the study is to formulate a Marketing Strategy for any
new entrant in the Indian Chocolate Industry. While recommending the said strategy detailed
information from both primary and secondary sources was collected and analysed. This
included:

Primary Sources

Four level primary information collections were undertaken.

1. To analyse buying behaviour and in order to gain an insight into the buyer need-
satisfaction level, a questionnaire was formulated and administered among 80
people. The profile of the respondents was as follows:
1. Consumers of chocolates – 12 years + in LUDHIANA. This was since;
chocolate consumption was witnessed amongst all age groups.

2. A distributor was also interviewed so as to get pertinent information regarding

the most important ‘P’ of FMCG marketing – Place.

3. Extensive interviews were conducted with retailers in the LUDHIANA area. These
included pan shops, grocery shops, bakeries, departmental stores, etc. They
provided information on various facts of chocolate distribution such as Point-of –
purchase material (dispensers etc.), infrastructure problems, critical informational
regarding the policies of the present players in the market, etc.

~ 25 ~
 Secondary Sources

A number of secondary sources of information were used. These were:

 Information: Industry statistics, problems facing the industry, future outlook, etc.
Also measures being adopted for cocoa production development.
 Internet websites Of Cadbury’s, Nestle and indiainfoline.com, askjeeves.com

 Extensive use of secondary information in the form of

magazines/journals/newspapers clippings, such as Business World, Business Today,
Business India, A&M, Brand Equity, Economic Times, etc.

RECOMMENDED MARKETING STRATEGY DESIGN

The market strategy of the firm is a complete and unbeatable plan or an instrument designed
specially for attaining the marketing objective of company. The formulation of the marketing
strategy consists of two steps:-

1. Segmentation & target market selection.

2. Assembling the marketing mix.

Market Segmentation And Target Market Selection

Market segmentation and target market selection have an intimate relationship with market
strategy formulation.

The company may focus on the following factors while laying down the target market.

1. Geographic Segmentation

Geographically the country can be broadly divided into 3 sub segments -Rural, Suburban
and Urban.

In the first phase (after the test launch), Urban parts of the country should be targeted. The
chosen segment is targeted because –

 Lack of infrastructure, like refrigeration-not to venture rural markets.

 The consumption pattern & behavior in Rural India does not fit with the product
attributes and perceived benefits.

~ 26 ~
 The limitation of disposable income is another factor that hampers entry in Rural
areas.

 Semi-Urban may be considered in the second phase. An year after the launch.

Within Urban India, the cities with 1 million + population i.e. top 23 metros will be targeted. A
soft launch of the brand should be undertaken before taking the brand to these areas. This
(test launch) will be undertaken in Bombay, since it (Bombay) is a high consumption city for
chocolates. (Source: Nestle (I) Ltd – infect Nestle’s sales peaked out in Bombay, during its
initial launch).

2. Demographic Segmentation

The demographic variables have been separately addressed to arrive at the target audience.

 Age: 12 years + segment of the population is recommended to be targeted. Small

kids may not be targeted, because of the nature of the perceived product benefit by
consumers in that age group, who are inclined towards sweeter and creamier snacks.
Further, it may not be easy to get youngsters off their tuck money. Also, children today
already have an array of cheap domestic and international confectionery (in the form of
chewing-gums, lollipops, rolls, lozenges and toffees).
 Family Life Cycle : In terms of family life cycle it is addressed at all of the following :

1. Young/Single or Married (with/without Kids)

2. Matriculates and College goers

3. Married with no children under 18.

4. Married old couple/old single.

5. Empty nest couples.

The brand may positioned such that it fits all stages of family life cycle.

 Income: The income segmentation may be all households with an annual income
exceeding Rs. one lakh. Targeted audience may be all households that can afford a
television or have access to satellite television.

3. Psychographic Segmentation

   Social Class: In terms of psychograph the social class targeted is the educated upwardly
mobile urban middle and upper class.

   Personality Traits: This segment essentially consists of emulators i.e., upwardly mobile,
pioneers, freaky, fun loving type of people. These are the people who like to enjoy life and
believe in traveling and adventure.

   Life Style: In terms of lifestyle, it may be aimed at those who favor buying convenience
products. They are also willing to experiment with alternate products in place of conventional

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food items, as the universe of chocolate consumption is changing from occasion led to more
casual consumption.  

4. Behavioural Segmentation

The moulded segment of the market is perceived to be the growth engine of the market.
Hence, this segment is quite lucrative for a new brand launch. Also, chocolate purchases
have moved from being occasion-led to a casual snack. Hence, anytime anyplace snack
aspect needs to be established. This segment comprises of people who like to have chances
and want to try new things.

5. Learning-Involvement

   The purchase of a chocolate is of a low-involvement category. It is an impulse purchase

and decision to buy is not pre-planned.

6. Usage Rate

   The market may be further segmented on usage rather than attitude-Anytime Anyplace
Snack. This is a group of consumers that find traditional snacks too heavy. Even though a
range of chocolates may be offered, a core brand (concentrated strategy mentioned later)
may be launched in the count line segment. Since this segment is tipped to be the growth
engine of the industry (according to industry sources – Mr. Sanjay Verkey, Cadbury’s India
and Mr. Bohidar) and this segment has a substantial share of the market (33%).

TARGET AUDIENCE

Following from the above, it is recommended to target consumers who found traditional
snacks too heavy. Usage rather attitude is being used to segment. This is the segment that
tended to pick up biscuits instead-something they could munch while continuing with their
schedule.

There are 181 million urban individuals in India Our target segment is people living in the top
23 metros (1 million +population), which implies 63 million people. Further, SEC A-B in these
23 metros with Cable & Satellite at home are targeted (94.4 % of SEC A-B have a cable &
satellite connection) [All these are NRS -VI & IRS ’99 figures].

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 Company profile

History

 Started business in 1948 in India. The company was incorporated as Cadbury-Fry

(India) Pvt. Ltd.
 Founder: John Cadbury in Birmingham, UK in 1824

 Current MD: Mr. Rajiv Bakshi

 Turnover: 450 Cr.

 No. of offices: 4 Staff Strength – 2000 approx.

1. Branch Manager is responsible for the entire Branch Function

2. Promotional Materials – Network ad, Media, POS Materials like posters, danglers,
dispensers etc.

3. Target – All age groups

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 4. Distribution: Through C&F Agents → Re-distributors → Retailers → consumers 
Godown: 1 in Delhi 
Office: 1 in Delhi 
Avg. No. of calls per day by S.O.: 35 
Sales Reporting – weekly basis

5. Sales Kit: Daily call report, product folder, price list, calculator, etc.

6. Organisational Structure:

7. Key products: Cadbury’s Dairy Milk, 5 Star, Fruit & Nut, Bournvita etc., Perk

COMPANY BACKGROUND

In 1930 R Hudson and Company finally joined with Cadbury. This gave the flourishing local
firm a direct link with one of the greatest in international chocolate manufacturing and
marketing. Over the years the company has been involved with many other long standing
brands and entrepreneurs – names such as Fry – a chocolate brand dating back to 1756,
and of course Schweppes which is still part of the Cadbury group internationally although not
in New Zealand.

In 1969 Cadbury Fry and Schweppes merged internationally with the New Zealand
Company becoming known as Cadbury Schweppes Hudson Limited in 1973.

In 1986 Cadbury Schweppes Hudson merged with Cadbury Schweppes Australia. The result
was a truly international operation with both the New Zealand and Australian companies
supplying each other. Cadbury Schweppes Australia is a fully owned subsidiary of Cadbury
Schweppes plc, the United Kingdom based parent company.

Most recently, in 1990 Cadbury required the Griffins confectionery business, and sold the
Hudson biscuit operation in a reciprocal agreement. The Griffins business dates back to
before the turn of the century. George Griffin established the company when he opened a
small confectionery business at Nelson.

Finally, in 1991 we became known as Cadbury Confectionery Ltd, and can now boast
dominance in New Zealand’s chocolate and sugar confectionery markets. With
manufacturing bases in both Dunedin and Auckland, as well as sales offices in Wellington
and Christchurch, the Company employs nearly 1,000 in total.

The Cadbury group has also flourished internationally. Cadbury Schweppes plc – the parent
company – has manufacturing facilities in 20 countries and its famous brands are bought
and enjoyed in more than 110 countries around the world. Cadbury is one of the world’s
leading chocolate makers and is number one in England and Australia as well as in New
Zealand.

PRODUCTION

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 Cadbury India’s first manufacturing facility was set up at Thane (Mumbai) in 1966. Today,
the factory has grown manifold and manufactures a range of products that include Cadbury
Dairy Milk, 5 Star, Nutties, Gems and Bournvita. The factory employs about 750 people and
houses the R&D and engineering development facilities of the company.

In a move towards backward integration, Cadbury bought Induri Diary farm in Pune in 1964.
Recently, a major investment program resulted in the installation of modern moulding, crumb
and chocolate making facilities. Today, the Induri Factory manufactures intermediate
products like milk crumb and a range finished chocolates.

In 1989, the company began operations in their newest and most modern plant at malanpur.
Equipped with state-of-the-art technology and backed by constant investment, this unit
manufactures Eclairs, Gems, Perk and Picnic.

VISION

The governing objective for Cadbury India is to deliver:

 Superior Shareholder Value

 Cadbury in every pocket

The company believe this requires:

 Broadening our consumer appeal and extending their reach to newer markets
 Sustained growth of their market share through aggressive product development

 Striving for international quality in their products and processes

 Focusing on cost competitiveness and productivity in their operations and innovative

utilisation of their assets

 Investing to develop people

GROWING MARKETS ............FALLING MARGINS

Incorporated in 1959 as Food Specialities Ltd., Nestle India Ltd. (NIL) is promoted by Nestle
Alimentana-Switzerland, which presently owns 51% equity stake in it. Nil is one of the top
players in the processed food and beverages industry and the largest producer of instant
coffee with a 49% market share. Its market dominance apart from instant coffee is spread
over processed milk products (condensed milk, milk powders and dessert mix), infant foods
and processed and culinary products (instant noodles, sauces, soups etc.).

~ 31 ~
Established in 1860, its Swiss parent Nestle, S.A. with ownership and a clutch of topsellng
global brands (Kit-Kat, Polo, Nescafe, Nido, Maggi, Perrier etc.) is one of the largest and
most profitable players in the processed food and beverage industry. with sales at US$ 47.7
billion, it ranks 39th in the Fortune 500 list towering over its competitors like, Kelloggs,
Conagra, Groupe-Danone, Kraft-General Foods and others.

Increasing market dominance: NIL's portfolio comprising over 65 products, marketed through
a representative-network in 3000 towns and 570000 outlets, is manufactured at five state-of-
the-art manufacturing plants in India.

While its Moga unit produces milk products, infant milkfood, weaning cereals, culinary
products and beverages, the Choladi unit was set up to produce tea in 1967. The third plant
at nanjangud was set up in 1989 to manufacture instant coffee and health beverages. Its
other two plants are located at Samalkha in Haryana and Ponda in Goa. It is currently setting
up another plant at Bicholim, Goa to manufacture culinary products. The gamut of operations
of NIL could be broadly classified into four categories.

FINDINGS

~ 32 ~
 AWARENESS - PURCHASE PREFERENCE

Top of Mind Awareness

Purchase preference

What influenced you to buy the selected brand?

~ 33 ~
 PURCHASE BEHAVIOUR

Reasons for Purchase

Chocolates - A gift to a love one

As a gift it is for -----

~ 34 ~
 IMPULSE DRIVEN

Most of my chocolate purchases are preplanned

I often pick up chocolates while I make other purchases ----

REINFORCING IMPULSE PURCHASE

~ 35 ~
 IMPORTANCE OF ATTRIBUTES - PERCEPTUAL MAPS

Importance of various Attributes in Chocolates

Rank of Chocolates on various attributes

Attributes 1 2 3 4 5

Taste CDM KitKat 5 Star Perk Amul

Quality KitKat CDM Perk 5 Star Amul

Packaging KitKat CDM 5 Star Perk Amul

Price Perk 5 Star KitKat Amul CDM

Flavour KitKat CDM Amul Perk 5 Star

Add-ons KitKat Perk CDM 5 Star Amul

Brand image CDM KitKat Perk 5 Star Amul

~ 36 ~
 PRODUCT RELATED

Taste & Preference

Size Usage. What size of a chocolate go ysou normally buy---------

PRICE RELATED

Suitable Price for a 40 gms Chocolate

~ 37 ~
~ 38 ~
 SWOT ANALYSIS OF NESTLE
STRENGTHS
The SWOT analysis of NESTLE clearly indicates the strengths of Nestle as a
Brand in Indian market. The Brand was found to be a leader in its category
ofNestle , with strong customer loyalty. Intensive distribution of Nestle as a
Brand was seen in urban areas of the country. The major threats of the brand
as shown in the figure below indicates that Nestle has made several attempts
to revamp itself as a ‘Healthy Product” but till date its perseverance towards
the tag line is low by the consumers. The brand is in the growth stage of
product life cycle with a strong inclination towards the maturity stage.

STRENGTH WEAKNESS

Market leader in their segment Product are dependent on each

Strong brand loyal consumer base other
Wide range of distribution channel Not so much presence in rural
Product according to the need of market
Indian consumer
Innovative Product

SWOT
ANALYSIS

OPPORTUNITY THREAT

Increasing number of working youth Price war with competitors.

Product has been acceptable in youth Strong presence of regional
category competitors
Shift to rural market Consumers don’t perceive it as
Changing preference of consumer a “Healthy Product”
towards Chinese food and fast food.
Can foray into other food markets
with its strong Brand name

~ 39 ~
 FINDINGS
CONSUMER RESEARCH:
Consumer research deals with consumer and their problems and solution to the
problems. In this we came to know about the consumers need and
expectation levels regarding products and ascertainable levels of consumer
satisfaction.

PRODUCT RESEARCH:
Under product research I came to know about the modification which
consumers wants as to the quality, packing, shape, color, and quantity etc. of
their favorite chocolate.

PRICING RESEARCH:
This includes ability to consume, to pay for the product, how much a person can
spend on his/her favorite chocolate. In this I have tried to find out consumer’s
price expectations and reactions.

ADVERTISING RESEARCH:
Under this I have concluded that whether the advertisement appeals the
consumers or not. This also includes evaluating and selecting the proper media-
mix and measuring advertising effectiveness. From the one and half month
experience of our research project with Consumer preference towards Nestle
and Cadbury Chocolates, We have come to know lot things and it has enhanced
our knowledge to great extent. We found many things which are well executed
by distributors. Here are some of the key findings given by us are purely based
on our research. It doesn’t have any kind of bias from our side.

~ 40 ~
 They are given as under:

By doing the comparison of Nestle and Cadbury chocolates, we have found that
the preference of the chocolates more preferred by the consumer is Cadbury.

From the analysis we have found that Nestlé’s some brand has covered 50% of
the market in one product (Munch) of the chocolates which is a very good sign
for the company.

Through the research we found that consumer is very conscious about the
quality of the product in that matter they are not ready to compromise. And we
found both company product are very qualitative.

In some cases we found that if a product is not available in the market than
some consumer would to switchover to another product or brand.

So from these survey we have found that the consumption of the chocolates are
more in children and teenage group though having any occasion or not having
any occasion. The most selling product of both the companies is in small size of
chocolates and there market share is 73% because it’s not much costlier and is
also easily available & affordable.

~ 41 ~
SUGGESTIONS AND RECOMMENDATIONS

Chocolates products at Mumbai city are available in comparison to

previous years, but still there is requirement of development in Chocolate
products. Due to increasing overall cost in Chocolate Products everywhere,
cost format should be made as such that it is affordable to each and
everyone in the society. In this we also found that if the demanded brand is
not available, so at that time the customers switch over the brand of the
chocolate so, here the company should build up the healthy distribution
channel by which company can attract the customers and company loose the
fear from the market. Company should concentrate more on television for
advertisement, as mostly people get attracted through television only. For
promotional offers, company should go for free gifts rather than going for
other ways. Nestle company should concentrate on its packing as people are
least satisfied with it while Cadbury should concentrate on the shape of a
chocolate. People are unsatisfied with the price and quantity of chocolate so
companies should concentrate in this regard also.

~ 42 ~
CONCLUSION

In today’s competitive business environment brands have assumed a role of growing

importance. They can differentiate a company’s products and customer loyalty, helping
to sustain profitability in the long term. The Cadbury Dairy Milk brand has evolved into a
Megabrand incorporating a range of products each with their own identity, but now
under the Dairy Milk brand. This initiative is intended to leverage the strength of the
Cadbury Dairy Milk brand to the full. The strategy involved a packaging and range
refreshment strategy which has resulted in a unified innovative Dairy Milk brand. Having
exceeded initial sales tar gets by a considerable margin, the strategy can be considered a
success!

Branding is one of the most important aspects of any business, large or small, retail or
B2B. An effective brand strategy gives you a major edge in increasingly competitive
markets. But what exactly does "branding" mean? How does it affect a small business
like yours?

Simply put, your brand is your promise to your customer. It tells them what they can
expect from your products and services, and it differentiates your offering from your
competitors'. Your brand is derived from who you are, who you want to be and who
people perceive you to be.

Are you the innovative maverick in your industry? Or the experienced, reliable one? Is
your product the high-cost, high-quality option, or the low-cost, high-value option? You
can't be both, and you can't be all things to all people. Who you are should be based to
some extent on who your target customers want and need you to be.

The foundation of your brand is your logo. Your website, packaging and promotional
materials--all of which should integrate your logo--communicate your brand.

Branding is all important for those of use who want to be recognized for their name,
business idea, business or product. Like the big name brands such as Sony, Amazon,
Google, Yahoo, etc. business professionals such as freelancers, product developers,
writers, pro-bloggers all need a brand to be instantly recognized by.
For most, the brand name is either their own name, or else the name of the product they
developed. Not only will others know who they are dealing with, but if we brand
ourselves properly, then our name will be a synonym of quality further down the track.
We all know that big name bloggers such as ShoeMoney, John Chow, Yaro Starak, Maki
and Daren Rowse have managed to do just that. They branded themselves through
continuously using their own name or that of their website.

~ 43 ~
 BIBLIOGRAPHY

Kotler Phillip, Marketing Management, Millennium edition. (Prentice hall of

India).
Business today
Business World,
Business India,
A&M, Brand Equity,
Economic Times
CMIE reports
www.indiainfoline.com
www.domain_b.com
www.agencyfaqs.com
www.nestle.in
www.nil.com
www.cadburys.com
www.web-enable.com/industry/enabling-scm.asp
indiainfoline.com
askjeeves.com

~ 44 ~
BIBLIOGRAPHY

~ 45 ~
 http://www.cadburyindia.com/home/index.asp

 http://images.google.co.in/images

A brand pyramid can help manager

 The stopplantier
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 http://en.wikipedia.org/wiki/Cadbury_plc

 http://www.cadburyindia.com/brands/choco1.asp

. A brand
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~ 46 ~
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